Vaccine for business resilience
I never thought I would experience perestroika twice in my lifetime. But never say never…I experienced it firsthand growing up in Russia in the 90-s and when earlier this year in the U.S., the grocery shelves became empty and the toilet paper became the hottest currency, I had a flashback. Welcome to global perestroika.
We are living through the history book times on a global scale, in business and communities. Every company I am reading about or following is faced with the biggest uncertainties about their business. Everyone is in survival mode. For some it means low or canceled orders, while for others it means scrambling to keep up with the surge in demand. Either way, all focus is on operations. It is the bloodline of the company. Cut everywhere you can.
Corporate and business strategies set before the pandemic are collecting dust. New strategies are opportunistic to answer the market demand for sanitation, disinfection and PP&E. Yes, opportunities should be seized. I see some amazing innovations coming to market in record times and people’s creativity and resilience always amaze me but…I have questions.
Will these products be strategically relevant to you in the post-pandemic world? If so, how? Will you stay the course you set in those strategic plans before the global pandemic shift or is this the opportunity for your company to reinvent itself?
I am sure many business leaders are wrestling with these thoughts as the uncertainty continues. While we can’t control how long these trying times will continue, we can control how we ride them out. Yes, cost cutting is one short-term answer to the problem. Sometimes it is inevitable. But is there another path? I believe there is. I see companies that look at this situation as an opportunity to invest in growth by sharpening their existing strategies, staying the course and acquiring strategically relevant businesses.
What separates these two categories of companies? I would say a robust strategy, a well-balanced portfolio that can sustain downturns and a solid pipeline of organic and acquisitive growth. Most importantly, though, in my observation, companies where all business units have a clear strategic direction, understand top priorities and have the flexibility to adjust them based on the macro-economic and business climates are the ones that will weather the uncertainty best.
So, at the end, for me, this is the vaccine for business resilience. It all comes down to a well thought-out, pressure-tested and clearly communicated strategic plan. It needs to be simple despite its complexity.
And even though I may not have all the answers, I am not afraid to ask honest questions, challenge the ‘this is how we have always done it’ responses and work with your company to bring a fresh perspective to your toughest questions and help you think through them.