There are two ways to look at the post-Covid world.
The first is to look through the lens of risk. After all, there is likely to be a significant recession in most countries. How deep and long-lasting the downturn proves to be is still up for debate, but most economists predict a 10% hit to UK GDP in 2020, for example, and a two- to three-year recovery period.
Through the risk lens, you will, quite naturally, focus on cutting costs, preserving cash and minimizing any higher-risk investments. Your focus is on survival.
The second view of the world is through the lens of opportunity. People will have new attitudes and behaviours, different to those from before the pandemic. Some of these behaviours (e.g. eating out less) will result from having less cash to spend as a result of the recession, but other behavioural changes will have different drivers. For instance, people will want to exercise more, eat more healthily and be willing to buy other products that enable them to improve their immune systems.
Through the opportunity lens, you will, instead, focus on getting closer to your customers, developing new, innovative products and services and improving the capabilities of your organization to meet the realities of the new, post-Covid world. Your focus is on growth.
A focus on risk management and survival is critical for your business. But it will not be enough. You need to balance your survival instincts with a growth mindset and strategy. Studies have shown that the companies that do best in the years following a recession are those that continued to invest in marketing, people development and new product and service development through the downturn.
What steps are you planning to take this year and next to balance your cost management disciplines with investment in your brands, your people and the development of new, innovative solutions for your customers?
Off The Record: Both Sides Now by Joni Mitchell
I’ve looked at life from both sides now
From win and lose and still somehow
It’s life’s illusions I recall
I really don’t know life –
Succeeding Beyond The Coronavirus Pandemic
If you want to succeed in the post-COVID world you need to plan and act fast now to reshape your business to your new realities and opportunities. This white paper sets out the new business realities arising from the coronavirus pandemic and gives you a clear, 5-step process to reshape your strategy and accelerate your success as we come out of the crisis.
© Stuart Cross 2020. All rights reserved.