Reopen AND reinvent

Just weeks after winding down their operations, companies are being asked to restart their engines at an unprecedented rate as lockdown rules are gradually relaxed. The challenge is complicated by uncertainties about the progression of COVID-19 and the social, political and fiscal actions that it will drive.

Reopening requires more than a return to normal, however, because the unpredictable and long-lasting period that follows this pandemic will feature fundamental changes to economic activity, fast-changing cultural norms, societal values and behaviors. To reopen and to outmaneuver uncertainty also requires a program of reinvention.

This presents an opportunity—and a need—for many companies to build the competences they wish they’d 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. Leaders should consider the steps they take to reopen as the first in a long journey of wider transformation.

Preparing against scenarios

CEOs must reopen without knowing how the pandemic will play out. There are a range of potential scenarios based on the evolution of the virus itself and the nature of the social response.


Cyclical outbreaks
Infections are controlled in past locations but spread to new hot spots and rebound in old. Patience wears thin with social distancing, opening societal fissures.


Rapid remission
The disease is contained and life returns to normal swiftly. Government measures work quickly to stabilize the economy.

Prolonged chaos
Effects to control the virus seem useless. Governments and societies are strained to the point of breaking. The economy is limited to necessities only and inflation soars.


Flattened curve
The rate of infections is slowed but does not go into remission. The economy shrinks in near permanent ways. Society bends but does not break, pulling together to sustain government measures.


Not just a (Re)Opening: A New Beginning

Given the circumstances, business leaders have three priorities:

Navigate uncertainties
 

Given the range of potential scenarios, companies will need to be prepared to change course on a dime. Any steps that are taken to reopen should therefore be easily reversible and scalable.

Mitigate immediate challenges

Companies will have to provide a safe and secure work environment, communicating with their workforce transparently to build trust.

Build a better future
 

Companies should not reopen by reverting to old ways. The reopening is an opportunity to create a better future for employees and customers.



Commit to active reinvention

A program of active reinvention that outmaneuvers uncertainty starts with these five areas:

01. Put People First

Today, we see that shared humanity at work can make all the difference in this crisis. Companies need to go beyond the transactional to truly understand their employees if they want to create productive, inclusive and rewarding working environments for the long haul. ​

    • Our COVID-19 consumer research found that over 64% of the global workforce is facing high anxiety over their personal job security. Others are worried that traditional social interaction may no longer be possible.
    • Proactively seek feedback from employees and give them a voice.
    • Find the right ‘glocal’ mix of leadership, delegating where appropriate but providing central guidance and coordination.

  • Living your purpose motivates people to persevere with a challenging journey of change.

  • Turn furloughed workers into flexible workers, retraining them in skills that enable them to refocus on areas of higher demand. Offer learning programs and career pathways to affected people.

  • Offer life coaches, mental health support and wellbeing programs to help grieving employees or those managing stress, such as those caring for elderly patients and partners of key workers. Honor losses. And ensure leaders share their own COVID-19 experiences.

    • Work may open, but schools and elderly care may not. 67% of American children under six have all available parents participating in the workforce.
    • Revisit policies, focusing on the most vulnerable groups, such as temporary workers, people with disabilities, single parents or those who lack adequate health benefits.

Create a safe working environment that gives people confidence to return to work premises and to adjust to the new virtual / physical hybrid way of working.

  • 49% of people in our survey who never worked from home now plan to do so more frequently in the future. Redesign work so that it can be completed more effectively from home. Train leaders to manage hybrid virtual / physical teams and extend technology support.

      • Create not just a safe environment, but a comfortable and stress-managed one as well.
      • Limit physical contact and enable more flexible use of space (e.g., operate shift hours). Segment key workers who must be physically present on the frontlines from those who can work remotely.

  • Companies have an obligation to think beyond their employees. Seek to quickly meet your legal obligations as well as supply chain partner expectations. Consider the role of chief medical officer to manage health protocols for the organization and its interaction with the wider ecosystem.

  • Extend protocols for data, network and systems security to manage use of personal devices and new collaboration tools.

  • Increased levels of employee monitoring and new security measures will demand explicit and implicit contracts with employees.

Plan for a phased return that responds to unforeseen events, slippage, and reversals. Take this opportunity to rethink, reengineer and improve future operations.

    • Separate planned waves by key milestones that must be hit.​
    • Use financial as well as calendar targets. Monitor early warning signs of scenarios (such as cyclical outbreaks) and be ready to act accordingly. ​
    • With governments revising policies each day, local decision-making with central coordination is key.

  • Look to reopen the business components that generate cash/and or profits fastest to fuel new growth streams.

  • Companies should not allow their restart to get ahead of their ability to maintain secure systems and physical environments.

    • New leadership skills will be needed in the reopening and beyond, requiring a different set of skills and leadership styles.
    • This is the time to identify and empower your most entrepreneurial and inclusive leaders.​

Shift from rapid cost reductions to building a resilient cost management mindset, and from balance sheet protection to long-term investment.

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

    • 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. ​
  • Balance short-term protection of liquidity with long-term investment and M&A need. Determine what M&A opportunities should be seized while distressed assets become available.​ Identify how M&A can improve cross-industry ecosystem capabilities that improve agility and resilience.

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

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.

    • 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 AI and other tools to manage customer interaction and to analyze customer behaviors. Provide frontline staff with the data insights they need to personalize experiences. 
    • 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.​

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

  • 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.

Goodbye reopening, hello reinvention​

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. ​ ​

But this creates new opportunities for organizations with the courage and foresight to change more than immediate needs demand. Those that can reinvent themselves—their processes, customer experiences, employee and social contracts, and do so in ways that further their purpose—will win. 

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

As the situation unfolds, we will continuously update our materials, so please check back regularly.



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