A man is told to close his shop on Louis Botha Avenue, in Johannesburg. Police were still patrolling the streets of the inner city amid a nation wide lockdown. Picture: ALON SKUY
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.
The easing of restrictions is no guarantee of a quick return to normal — there are a range of potential scenarios for the evolution of the crisis. We could see the quick rebound of rapid remission. But with the virus still circulating, the possibility of recurrence will remain high, with cyclical outbreaks requiring lockdowns to be rapidly reinstated.
In addition, companies should not reopen by reverting to old ways. Employees have adapted to new ways of working — some of which they may prefer. New processes and capabilities are a stepping stone to longer-term business transformation. The reopening is an opportunity to create a better future for employees and customers.Put people first. Knowing what is really going on in the lives of employees is essential to creating the next generation of successful business.
Commit to an elastic cost structure. Having secured short-term liquidity, companies will need to focus on the longer-term financial health and affordability of the business. That means moving from rapid cost reductions to building a resilient cost management mindset, and from balance sheet protection to long-term investment.