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.
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:
- Solve in Phases
- Commit to an Elastic Cost Structure
- Get Future-Ready
COMMIT TO AN ELASTIC COST STRUCTURE
- 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.