Preparing for acquisitions and divestitures post-pandemic
IBM Smarter Business Review
As businesses leaders look to their post COVID-19 future and re-evaluate strategic plans, many are finding themselves in a significantly different position than where they expected to be at the beginning of the year. In the first half of 2020, the business environment amplified strengths and weaknesses of both individual companies and entire industries. Businesses were no longer able to hide areas of lower performance — especially in customer service and operational efficiency.
Although previously unexpected opportunities are likely to be available for companies due to the effects of COVID-19, businesses must still proactively position themselves to capture opportunities. Businesses should consider the following when dealing with potential acquisitions or divestitures:
- Increased opportunities for businesses
- Focusing on operations and people before acquiring
- Increasing attractiveness to companies considering acquisitions
Reward your employees - without breaking the bank
Harvard Business Review
As the ongoing public health crisis has metastasized into an economic slowdown, it’s difficult for many corporations to retain and reward their people. Many firms aren’t in the position to give their employees large annual bonuses.
Instead of waiting an entire year to pay a bonus, consider introducing bonuses that employees can anticipate more frequently, such as recurring spot bonuses which are based on individual performance but also tied to the performance of the company. Not only will it more regularly stimulate “satisfied” brain activity among employees, but it will also help form a mental association between the results of the firm and individual performance.
Giving such a bonus presents an opportunity because you will have everyone’s attention, and they’re more likely to be open to what you and other leaders have to say. This is the time to share your vision, address queries, and inspire action.
Risk, resilience and rebalancing in global value chains
New research from the McKinsey Global Institute explores the rebalancing act facing many companies in goods-producing value chains as they seek to get a handle on risk—not ongoing business challenges but more profound shocks such as financial crises, terrorism, extreme weather, and, yes, pandemics.
Coming on the heels of Brexit and a flare-up in US–China trade tensions, the COVID pandemic has forced businesses to focus on building resilience in their supply chains and operations. Not everything that can go wrong actually does go wrong, but businesses and governments cannot afford to be caught flat-footed when disaster strikes.
Preparing for future hypotheticals has a present-day cost. But those investments can pay off over time—not only minimising losses but also improving digital capabilities, boosting productivity, and strengthening entire industry ecosystems. Rather than a trade-off between resilience and efficiency, this rebalancing act might deliver a win-win.