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Adapt to your new reality...COVID 19

For many businesses, survival is currently the only agenda item. Others are thinking about how to adapt once the crisis has passed and things return to normal. The question is, ‘What will normal look like?’ While no one can say how long the crisis will last, what we find on the other side will not look like the normal of recent years.” A shock the scale of the Covid 19 pandemic will create a shift in the preferences, expectations and habits of individuals as citizens, as employees, and as consumers. These shifts and their impact on how we live, how we work, and how we use technology will emerge more clearly over the coming weeks and months. Businesses that reinvent themselves to make the most of better insight and foresight, as preferences evolve, will disproportionally succeed.

Companies are adapting with five sets of actions...

The online world of contactless commerce could be bolstered in ways that reshape consumer behavior forever. But other effects could prove even more significant as the pursuit of efficiency gives way to the requirement of resilience—the end of supply-chain globalization, for example, if production and sourcing move closer to the end user.

The crisis will reveal not just vulnerabilities but opportunities to improve the performance of businesses. Leaders will need to reconsider which costs are truly fixed versus variable, as the shutting down of huge swaths of production sheds light on what is ultimately required versus nice to have. Decisions about how far to flex operations without loss of efficiency will likewise be informed by the experience of closing down much of global production. Opportunities to push the envelope of technology adoption will be accelerated by rapid learning about what it takes to drive productivity when labor is unavailable. The result: a stronger sense of what makes business more resilient to shocks, more productive, and better able to deliver to customers.

The aftermath of the pandemic will also provide an opportunity to learn from a plethora of social innovations and experiments, ranging from working from home to large-scale surveillance. With this will come an understanding of which innovations, if adopted permanently, might provide substantial uplift to economic and social welfare—and which would ultimately inhibit the broader betterment of society, even if helpful in halting or limiting the spread of the virus. As we consider the scale of change that the coronavirus has brought and will continue to bring in the weeks and months ahead—we feel compelled to reflect not just on a health crisis of immense proportion but also on a restructuring of the global economy. How exactly this crisis evolves remains to be seen. Leaders need a clear path to navigate to the next normal...a normal that looks unlike any in the years preceding the pandemic.

Business leadership was already struggling with digital transformation and its pace and scope of disruption. While digital transformation won’t go away, smart leaders will recognize and leverage their digital operating system to capitalize on the disruption.

coronavirus, the pandemic that changed everything.

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