Since the beginning of the pandemic, I have accompanied dozens of entrepreneurs from different sectors, from all regions of the country. I’ve seen up close two ways of dealing with this peculiar moment.
1) Companies that have opted for extreme innovation. They have changed their focus, their products, their communication, their positioning, because they are aware of new market demands and their customers’ pains.
2) Companies that managed to add even more value to what they were already doing very well. And in the midst of the pandemic, they have had the best results in recent years, even contributing to the survival and growth of other companies that have been influenced by their assertive positioning.
We know that regardless of the scale of a crisis, only those who are prepared can survive and grow in a scenario as adverse as the one COVID-19 has caused globally.
For entrepreneurs and executives who had already faced other serious crises and had developed a good degree of resilience, it was easier. Just as it was for those who, during the period when everything was going well, acquired the necessary knowledge to adapt to the changes that the market and life demanded of them.
Crises come and go, that’s nothing new. Entrepreneurs and leaders with some experience have lived through other crises and know that this won’t be the last. There are some predictions that the worst is yet to come. And if that happens, how are we preparing?
I recently read an article by Gallup, which presented a survey revealing that 62% of employers in the United States are not confident about the financial future of their companies.
Among the companies that I have accompanied and continue to accompany, some of the strategies that we developed together were essential for good performance:
1) Improving communication with the team – In several cases, we achieved above-average engagement. And one of the factors behind this result was the awareness that everyone was at risk, and needed to row together at the same pace to face these rough waters.
2) To see how they could offer even better products, services and experiences to their customers, while paying attention to new needs.
3) Negotiate with suppliers with a focus on sustainability for everyone involved. I’ve seen beautiful examples involving careful and constructive negotiations for both sides. Like when a supplier was in a desperate situation, believing that his business would not survive, and by keeping the focus on the quality of delivery after a few months was hiring more people to meet the work demands at the height of the Pandemic.
4) Take a clear look at the financial situation in order to make wise use of the resources offered by the government.
My practical experience has been validated by the Gallup study, which found that there are 4 areas that leaders should focus on to fill the confidence gap with regard to the future and develop resilience so that their organizations and teams are prepared to face the next challenges:
1) Reimagine the customer experience
2) Refresh the leadership
3) Reshaping Culture
4) Reviving the workforce
An intense focus on the customer experience is fundamental. To this end, it is more essential than ever to be attentive to changes in behavior and new consumer needs.
Only companies that can anticipate new demands and adapt quickly will be able to stimulate the cash flow needed for periods of adversity.
In a high-risk scenario like the one we are experiencing, only those who know their customers deeply will be able to boost loyalty and long-term profits.
And the challenge here is that managers and leaders need to do this without compromising brand consistency.
Some time ago, even before the pandemic, an article was published in the Harvard Business Review that talked about the need for leaders to think about the capabilities and shortcomings of their companies as carefully as they think about the skills of their team members.
The more clarity there is about a company’s core capacity, the easier it is to understand what kind of change the organization will be able to withstand in the face of new challenges.
When thinking about disruptive innovations in a crisis scenario, 3 factors need to be analyzed:
1) Resources
Can you maintain current operations while investing in innovation?
Or do we need to reallocate resources?
Do we need to create new channels to serve our customers?
How are ergonomics and time management in times of remote working?
How long do we keep the operation going if the worst comes to the worst?
What indicators will give us clarity that we need to have the stomach to make crucial decisions?
2) Processes:
Do current decision-making processes allow autonomy for disruptive decisions? These less visible decision-making processes are essential for the agility that a crisis demands. That’s why it’s so important to have crisis management committees, with strategic meetings to assess what’s happening externally in good time so that internal decisions have the speed that the moment demands.
How can we accelerate the speed of innovation to meet market needs?
How does communication take place between those involved to transform resources into valuable deliverables?
It’s natural for a team that has been performing very well in a process up until now to see a drop in performance at a time of innovation. How do we avoid inefficiency in times of disruption?
3) Values
What values do we need to include or change at the moment of transformation?
Can we accept a lower profit margin to launch a new product?
Are we agile, adaptable and ready to offer the experience our customers want?
Moments like these are excellent opportunities to reformulate and strengthen a culture of engagement in meaningful work of great social value.
My experience with clients who realized the importance of their segments for society, at the most serious moment of the pandemic, raised the team’s self-esteem, sense of ownership and self-responsibility for getting the job done.
I venture to guess that after COVID 19 the engagement indicator, which checks the connection with the company’s mission and purpose, increased among the people who kept their jobs. Excellent managers know that this alignment with Organizational Culture is essential for companies that want their teams to be prepared to overcome periods of crisis.
4) Leadership:
Who will be the people running the innovation projects?
Do we have the staff to understand and meet the new demands?
Are leaders managing their own emotions to inspire the team to make the necessary changes?
Too much is usually expected of leaders and too little care is taken of them. Is there room for their fears and anxieties to be heard?
How are the vulnerabilities of leaders and subordinates received and dealt with?
Is there investment in the self-development of people in such important roles so that they can continue to feel challenged, in flow? Or are they on the verge of burnout?
Leaders who inspire, motivate and keep the team engaged also need to be cared for, listened to and developed in their needs. Only with them will we be ready to face new challenges. And in a crisis scenario, we need to look at who is leading the teams, so that companies are not surprised by burnouts in strategic areas. Offering leaders the opportunity to go through a coaching process, where they can present their difficulties and find ways forward in a safe environment, and receive feedback from someone neutral, makes all the difference.
More than ever, we need to take care of the people who occupy strategic positions! And if you, who are reading this article, are the person who occupies this position, remember to also look after yourself so that you can continue to contribute and make a difference through your positive impact on the direction of the organization and the relationship with your team for a long time to come, whatever the scenario.
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