- May 4, 2020
- Posted by: admin
- Category: Articles
The ongoing COVID-19 crisis is much more than just a health crisis. Corona is going to change some economic game rules rapidly and thoroughly.
Today already, however, visionary business leaders can start to identify and steer on what is to come.
It is crystal clear that economically there will be a pre and a post corona era. Some corporations can now unfortunately solely focus on their survival, but this provides opportunities for the other companies to be already thinking and responding to post-corona possibilities. The post-corona business world will look more digitized than the present-day, but also the “brick & mortar” will not vanish. Complexity will be there to stay.
A successful transformation presupposes four steps in which governance is critical:
4. Reinvention and consolidating the post-Corona models.
How much time each phase will take will depend on the resilience of each organization, and tomorrow’s champions will be those organizations that will be playing on the four chequerboards simultaneously.
The recipe for economic recovery post the corona crash will be no different from in any other crisis: a mix of ownership, entrepreneurship, belief in one’s abilities, perseverance, and willingness to work together, innovate and transform.
Now, more than ever, it is up to leaders to show determination, not to sit on the fence and start the transformation. The financial consequences of these crises are not yet fully quantifiable, but they will be considerable. In the first few weeks, the focus of many companies will be on liquidity and creditworthiness, but quickly there will be a battle for the “pole position.” It will be the most responsive and resilient company that will take the most competitive advantage in the upcoming several months.
The recovery will bring the inevitable challenges. The strength of the weakest link in the organization’s supply chain will be determining. Fast, thorough, and well-organized optimization of the current processes and cost savings will prove to be vital to transform successfully.
Re-inventing and re-engineering the organization will be required. Structures will soon look transformed entirely, and optimized operating leverage (DOL) will be paramount to steer the organization through the expected volatile times. What is the optimum mix between fixed and variable costs? Are all those high overheads, expensive buildings, cars, and staff costs required? …
The road to a resilient and shockproof organization of the future starts now by asking the critical question of how to build customer satisfaction most profitably?