It is true to say that 2020 has been a year many of us wish to hit the reset button
on. For individuals, organisations and countries the impact has been huge in so
many ways.
Perhaps one of the relatively insignificant changes has been to our language.
Phrases and words such as “household”, “furlough”, “the new normal” and
“these are unprecedented times” were once uncommon, if not completely
unused, however they are now part of our everyday language. We no longer
count people, but “households”. We nod knowingly when somebody says, “I’ve
been furloughed” and “these unprecedented times” that have created “the new
normal” may once have been phrases that we expected only to hear in crime or
spy thrillers.
But what do these additions to our language mean in the context of business and
what can we do to exercise damage limitation during “these unprecedented
times” and adapt to “the new normal”?
It was reported that ‘more than 50,000 listed companies worldwide have lost
around 19.4 trillion euros in value within six weeks (minus 24 percent).’ (The Global
Strategy Group, KPMG ‘Recalibrating Your Strategy’, 27.05.20). While
many businesses have been able to begin to regrow in value since, this is a
decline that has not been seen before in such a short time frame and absolutely
highlights the challenges and unpredictable future facing businesses today.
Aside from such devastating decreases in company value, there are the
significantly vital impacts on workforce productivity and motivation, changes in
market landscapes from supply to demand, and the operational processes in
between. Each of these have a part to play in a company’s short, mid and long
term strategies as we wean ourselves out of lockdown.
Efficiency often becomes the strategic buzzword for times of difficulty. As a
strategist, it’s in my DNA to push to optimise resources, increase efficiency and
ultimately increase profitability. In a time where resources are limited and we
have to generate more from less, efficiency would appear to never have been
more vital. What we must absolutely ensure though, is that the balance of
efficiency and resilience is met.
Being as efficient as possible, cutting costs and streamlining processes is
paramount in “these unprecedented times”. Many companies do not have a
choice but to take a step back and look at their strategies, revaluate and adapt.
They must strip back their core processes and ensure all resources are running at
an optimal level. The sad reality is that, when we are in times of such
uncertainty, and already struggling to maintain our minimum targets, that’s
when it seems the hardest to step back. I have observed many businesses enter
into survival mode and, with the limited resources they can afford to keep on, it
is all hands-on deck.
However, now is the time to hit that reset button. Now is the time to examine
efficiency strategies under a new light. Efficiency is not just a tool to run as cost
effectively as possible, efficiency can create space and opportunity. It should
help create slack where operational rope is too tight. It is then that we create
resilience.
There is little room for resilience in an overly efficient company because there
is little room for innovation, change and growth. Your efficiency strategies must
build this in for the long-term, because, if there is one thing that COVID-19 has
taught us, it’s that we need to be flexible and innovative.
So, as we ease out of the “furlough” period, and enter into “the new normal”, let
us take a moment to stop, breathe and explore how it has changed our business
landscape and what opportunities that provides our new, efficient yet resilient,
business model. After all, “these are unprecedented times” for every
“household”.
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