Seeing opportunity in pressure

When oil prices cross the $100 mark, most discussions quickly turn technical. Economists talk about inflation bands, central banks and global supply shocks. I understand why. These are important. But from where I sit, working with business leaders across industries, the real story is not just about economics. It is about decisions. It is about leadership under pressure.

I have seen this pattern repeat itself in every crisis. Costs rise fast. Revenues do not keep up. Margins tighten. Then the pressure builds. And that is where the real test begins.

In the Philippines, the effects are immediate and visible. Higher oil prices push up electricity costs. Transport fares follow. Food prices creep up because logistics becomes more expensive. Even mom-and-pop stores feel it. What used to be a manageable cost structure suddenly becomes unstable. For many companies, especially those operating on thin margins, this is not a theoretical issue. It is survival.

The instinct of many leaders is to react quickly by cutting costs. Freeze hiring. Reduce budgets. Delay projects. I have advised companies during past crises, and I understand why this happens. It feels like the safest move. But I have also seen how this approach, when done without clear thinking, creates long-term damage.

Cutting too deep can weaken the very capabilities a company needs to recover. You lose talent. You slow down innovation. You damage morale. In the short term, the numbers may look better. In the long term, you fall behind competitors who made smarter choices.

Leadership during inflation is not just about reducing expenses. It is about deciding what to protect.

I often ask executives a simple question during these times. What are the few things that must not be compromised? For some, it is customer experience. For others, it is product quality. For many, it is key talent. The answer is different for every organization, but the discipline is the same. You cannot protect everything. But you must protect what defines your value.

At the same time, leaders need to face reality. Not all costs can be absorbed. Passing on price increases to customers becomes necessary. This is where leadership judgment becomes critical. Raise prices too fast and you risk losing demand. Delay too long and you erode margins further.

Many business leaders navigate this well by being transparent. They explain the situation clearly to their customers. They adjust pricing in stages. They offer alternatives, smaller packages, flexible terms. It is not just about the price itself. It is about how you communicate the change.

There is also a deeper shift that leaders need to make. Inflation exposes inefficiencies that were easy to ignore when costs were stable. Suddenly, processes that used to work no longer make sense. Excess inventory becomes expensive. Long approval cycles slow down response time. Old supplier contracts become a liability.

This is the moment to rethink operations — not in a theoretical way, but in a very practical sense. Where are we wasting time? Where are we overpaying? Where can we move faster? I have seen companies use crises like this to simplify processes, renegotiate contracts and redesign how work gets done. These are not glamorous moves, but they create real impact.

One area that often gets overlooked is decision speed. In stable times, organizations can afford to move slowly. During a cost shock, delay becomes expensive. Every week of inaction can mean lost margin or missed opportunity.

Leaders need to shorten feedback loops. Decisions that used to take weeks must now take days. Information needs to flow faster. Teams need clearer authority. This does not mean being reckless. It means being responsive.

I remember working with a company during a previous oil spike. Instead of waiting for quarterly reviews, they shifted to weekly operational check-ins. They tracked costs closely. They adjusted pricing and procurement strategies in near real time. It was not perfect, but it allowed them to stay ahead of the curve while competitors were still reacting.

Another important point is mindset. When pressure hits, most leaders go into defensive mode. The focus shifts to staying afloat, keeping costs under control and avoiding losses. That is understandable. But if that is all you see, you miss what is changing around you. When oil prices climb, behavior shifts. People look for cheaper ways to move, produce and consume. That creates openings.

I have worked with transport operators who started tightening routes and tracking fuel use more closely, not as a long-term plan, but as a quick response. Some later turned that into a real advantage. A few manufacturers began testing solar or other energy sources simply to manage rising costs. Even small businesses adjusted packaging or bundled items differently to keep customers buying.

None of these choices feel comfortable at the start. They require effort at a time when teams are already stretched. But these are the moments that show how leaders think. Some wait for stability. Others act while things are still uncertain.

At its core, inflation is a test of clarity. Can leaders see beyond the noise? Can they focus on what truly matters? Can they make tough calls without losing sight of long-term direction?

The numbers will always matter. Costs, margins, pricing, all of these are critical. But behind every number is a decision. And behind every decision is a leader.

When oil prices rise, the environment becomes harder for everyone. There is no escaping that. But not all companies will respond the same way. Some will retreat and protect the short term. Others will act with discipline, make focused choices and position themselves for what comes next.

I have learned over the years that crises do not create leaders. They reveal them.

The views expressed here are his own and do not necessarily reflect the opinion of his office or FINEX.

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chairman of the AI and Digital Transformation and Governance program of the FINEX Academy. He teaches strategic management and digital transformation in the MBA program of De La Salle University.

rey.lugtu@hungryworkhorse.com