As the pandemic progresses to the “new normal”, it is necessary to invest the knowledge acquired during the crisis to redefine strategies and create resilience
We all changed the way we operate during the COVID-19 crisis. Some changes have been imposed and others represent the pinnacle of innovation in a crisis. Gartner, Inc., the world leader in business research and advice, points out that there has been a redefinition of the workforce and the work activity itself, as well as the employer / employee relationship and the business ecosystem. For most organizations, the commercial impact of the pandemic has been negative; for some, positive.
“The pandemic may have ended business strategies (or so it seems), but entrepreneurs have gained invaluable experience. Now, you need to meet with the executive team and use these lessons to reconfigure the business and operational models for a new reality, ”says Chris Howard, Research Director and member of Gartner's Content Leadership Council.
From now on, each company will follow its own path. Different parts of the same company may depart from each other. Some could reduce or retire specific activities. Others could reinvent themselves. However, more could essentially return to pre-pandemic levels.
"As we move from responding to recovery, the key for senior leaders is to make strategic decisions that will lead them to a renewed future state, however paralyzing the uncertain outlook may seem," says the analyst.
Gartner sees three phases of actions responsive to the COVID-19 pandemic. The duration of each will vary depending on the country, sector and company - and even business units, products or services. The stages are defined, mainly, by the events in each stage:
1) Answer. Immediate actions focused on keeping people safe and essential business functions in operation. This relatively short period is marked by high effort and potentially chaotic activity. Main activities: temporary corrections to stop negative impacts.
2) Recover. A more organized and coordinated effort to stabilize operations, with an average duration. Main activities: creation of a plan to restore the state prior to the pandemic and identification and adoption of the necessary resources to strengthen, reopen, rehire, reorganize, replenish etc.
3) Renew. Extended period marked by strategic and durable execution throughout the organization. Main activities: learning to conduct processes and operations flows in new, reproducible and scalable ways; use of acquired knowledge and standards emerging from previous phases to integrate the company around a new foundation and future plans.
What to do to lead the renewal phase - These steps are not sequential and are linked to the importance of leading the organization for a plausible and sustainable future. During disruptive periods, you can think of renewal as you deal with response and recovery screening. In fact, for leaders, it is not just possible - it is essential. “I saw this culture in leaders since the first moments of the crisis. When the coronavirus outbreak became a pandemic, I was already talking to some corporations about how to reimagine the future of their organizations. These executives did not like the interruption, but they knew that they should take advantage of the scenario and look for better ways to operate and reimagine their goals, ”says Howard.
Gartner surveys, including the CIO Agenda 2020, have shown that this type of decision making and strategy definition with agility results in disproportionate performance - and establish lasting leadership that is sustained after the initial interruption. "In these unprecedented times, it is valid to have this type of executive committee in place," says the analyst.
Build resilience - Skillful redefinitions also generate organizational resilience. As your company eliminates weaknesses in its business and operations models, it will be better positioned to face a similar situation in the future. In the absence of a vaccine or definitive cure for COVID-19, any recovery in commercial activity could easily be followed by another pandemic wave and, thus, again by the Response, Recovery and Renewal steps. Therefore, it is imperative to absorb the lessons learned quickly and create sustainable changes at the heart of its processes.
Before that, it is necessary to analyze and determine exactly how the crisis has spread in your company and what the failure of the existing models has been - and where the risks and opportunities are as a result. Group senior leaders around a scenario planning protocol that they can use to identify significant uncertainties and evaluate them in terms of their importance to the company's future.
Consider the highly disturbed environment and create a minimum viable strategy, using adaptive strategy tools and techniques, which can be repeated as your “new normal” emerges. Make strategic planning a continuous activity in order to respond quickly to the inevitable changes in the business ecosystem.
Redefine to achieve a sustainable future - "It is during the renewal phase that leaders take the opportunity to redefine or reconstruct their business and operations models to a new reality", reiterates the analyst. “Gartner indicates plausible post-pandemic paths such as revaluing, reinventing, returning, reducing and withdrawing. For some companies, the crisis forced business and operational models to the point of breaking them. Organizations will end up permanently reducing or eliminating these activities ”.
This includes transferring some resources to the on-demand contracting ecosystem - such as Software as a Service (SaaS) - or removing a product or service altogether. Some organizations, however, have the ability to redefine in the long run by reinventing themselves. Likely examples are manufacturers who have moved from production facilities to create sets of products or retailers who have found new ways and new ecosystems to reach customers who cannot visit their physical units.
Others could reinvent themselves, reorienting their capacity, such as government service centers that were forced to offer their services remotely. The government can eliminate some of its physical centers and, instead, focus on its new digital resources. However, others, such as digitized parts of an organization, can be permanently scaled.
Some businesses will return to pre-pandemic levels, but it will not be on a straight path. Producers of non-perishable consumer goods are a good example. They initially experienced growing demand, but could easily see demand sink as consumers' tendency to hold excess stocks has been corrected. This phase will also pass and demand will return to pre-pandemic levels.
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