COVID-19: REINVENT FOR A NEW BEGINNING

Outmaneuvering uncertainty – by mitigating immediate challenges, reinventing themselves, and building a better future – will create organizations that one day look back on the crisis as truly the darkness before the dawn. 

Business Services

SOLVE IN PHASES

Reopening will be more than a restart. It will be the beginning of a new era of business. The rules have changed. Employee and customer behaviors have changed. ​​ 

This presents an opportunity – and a need – for many companies to build the competences they wish they had invested in before: to be more digital, data-driven, and in the cloud; to have more variable cost structures, agile operations and automation; to create stronger capabilities in e-commerce and security. This agility will be core to the long-term capabilities they build. Those that can reinvent themselves – their processes, customer experiences, employee and social contracts, and do so in ways that further their purpose – will win.  

To reopen and to outmaneuver uncertainty also requires a program of reinvention. A programme of active reinvention that outmaneuvers uncertainty starts with these three areas: 

  1. Solve in Phases 
  2. Commit to an Elastic Cost Structure 
  3. Get Future-Ready 

COMMIT TO AN ELASTIC COST STRUCTURE

  1. Shift from rapid cost reductions to building a resilient cost management mindset, and from balance sheet protection to long-term investment. 
    • Lock down short-term cost reductions​ 

    Consider second wave cost reductions. Restructure short-term debt to long-term agreements. Reduce SKU complexity to streamline cash management. Variables costs, including technology (e.g. software-as-a-service and the cloud), outsourcing and contractors. ​ 

    • Establish elastic cost transformation culture​ ​ 

    Create a culture of cost control ownership and a mindset of continual cost assessment. Clearly communicate how cost reduction measures will fuel investment. ​ Invest in greater data intelligence to better adjust cost structures and manage liquidity. ​ 

    • Manage government programs​ 

    Assess government support programs and the possible obligations that could impact long-term liquidity or competitive agility. ​ 

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SOLVE IN PHASES

Long-term success of reopening lies in building new capabilities. This is the time to begin wider business transformation by leveraging new technologies at scale. 

  • Listen to your customers… and respond quickly​ 

Seek to understand and empathize with customers, putting them at the heart of how you design – and constantly evolve – your customer experiences. Build more personal and less transactional experiences. ​Invest in artificial intelligence and other tools to manage customer interaction and to analyze customer behaviors.   

  • Establish technology scalability with the cloud​​ 

Go beyond using the cloud to drive efficiencies in certain pockets. Migrate applications to the cloud at scale. And then embark on new ways – within the cloud environment – to drive innovation in the use of data and applications.​

  • Reinvent security for agile operations​ 

Manage the risks associated with large-scale workforce fluctuations. Look for supply chain weaknesses, counterfeiting and new cyberthreats in a less secure industry environment. ​ 

  • Build agile autonomy​ 

Underpin all areas of agility and experimentation with clearer empowerment of individuals and teams, supported by greater delegation and revised performance management metrics that reward autonomy. 

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