How to Lead Your Company Through a Crisis

Even before COVID-19, many companies in virtually every industry had a need for transformation.  Now, and after COVID-19, companies are faced with even more reasons why they need a rapid relaunch of operational and cultural adaptation strategies.  Although many companies have already undergone extreme transformation (one pertinent example is American Airlines starting a wine delivery business), it is not enough to establish the catalyst for change.  Most businesses have launched initiatives to reduce costs, implement new e-commerce models, reinvent supply chains, and improve engagement internally and with customers.  Companies must implement a process-focused and customer-centric culture to build out the new frameworks and reposition themselves for the new normal. 

One need almost every company has is to improve and increase their abilities to serve clients with COVID-19 restrictions in place, and to provide employees with a way to stay in touch with each other remotely.  With CBRE reporting that 2020 was “the worst year for office leasing since the Great Recession”[1], companies need to figure out how to still provide the same level of service, and make sure their employees have the tools and support they need to execute on their tasks.  Working from home also known as “working from anywhere”, presents leadership and cultural challenges for every organizations. These challenges are magnified by the constantly changing nature of a transformational journey.

Once a vision and future target operating model have been determined, company executives need to move quickly and decisively to implement their bold ideas.  CEOs must quickly build on those baseline actions by taking bolder measures.  One key to experiencing a successful transformation is to have set targets, coordinated actions, and clear milestones.  These reliable set of measures lead to an effectively managed program that provides results quickly and establishes effective communication both within and outside the organization.  Strong executive sponsorship and support has been one of the key success factors of large and small transformation projects. This success is driven by the leaders’ ability to stir the company towards a transformational culture embedded in the core values of the organization.  These leaders are able to ensure that their company, and most importantly their employees, thrive during such uncertain times.  Agility is the one trait that is absolutely critical for organizations to navigate the overall economic uncertainty.

With each day spent in the old framework, companies continue to lose business and market share.  That is why the evolution of a company and the implementation of new methodologies must be done quickly and efficiently.  It is imperative for executives to take immediate steps to galvanize their talent pool to sustain stronger cash flow while supporting the required investments into the company.  These executives must understand that just cutting costs will not be sufficient enough to improve the company’s market position.  It is also vital to improve capital efficiency and conquer short-term goals quickly to boost revenue.

With Internet of Things (IoT) and 5G gaining quickly in popularity and usage, companies are presented with great opportunities to transform digitally and generate improvements in performance across the company.   By introducing IoT, companies have been able to improve efficiencies by 83%.[2]  Many companies can benefit tremendously from AI, machine learning, and robotic process automation in order to cut costs and improve performance.  These transformations can be implemented for simple repetitive administrative tasks, as well as for HR workforce planning, invoicing, and payment approvals.  According to Gartner, 30% of operational costs can be eliminated by redesigning operational processes and implementing automation technologies.[3]  Rapid and effective implementation will be crucial in building the experience and expertise team leaders will need to lead their teams and increase credibility both internally and externally.  As can be seen in the figure below[4], technology trends are shaping the future for those hardest hit by COVID-19 – retailers.