The challenges of making organisational decisions in this uncertain environment.
Harvard Business School
Harvard University has developed a four step framework for financial resilience during the next recession.
- Managers throughout the organisation should understand their exposure. What might the next economic crisis look like? How might it impact revenues under the current operating model?
- Groups should develop a clear set of principles that can serve as a guiding force when the time comes to make tradeoffs and balance priorities. Take a strategic approach to modeling downside projections by categorising activities and businesses into “areas to invest, areas to maintain, and areas that can be reduced or eliminated.”
- Identify areas where revenues can be increased and costs cut in advance of a downturn. Strengthen the organisation’s financial position proactively.
- Prepare for change. At some point, leaders will need to make a determination as to when and how this plan is put into action.
Companies need to think and operate on multiple timescales - both faster and slower
In a rapidly changing, technology-fueled world, leaders need to become attuned to a faster pace of change. But they must also attend to the significant challenges and opportunities presented by slower change.
Companies that focus on heavily exploiting existing competitive advantages find it hard to change themselves. For example, Amazon could respond to Jeff Bezos’s call for urgency because the organisation is perpetually in motion - a trait that Bezos has famously popularized as the “Day 1 mindset.”
Whether through incremental changes (adding new product categories and automating warehouses) or quantum leaps (adding new verticals, such as AWS and Kindle), the company is always changing - and thus has never fallen into the comfort zone of a fixed routine.
As Bezos has said, “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” Such vitality in companies is essential to deal with fast changes.
It also improves their ability to implement strategy to combat slow changes.
Digest of global tax developments in response to COVID-19
This digest reports tax developments in response to COVID-19 around the globe.
Reimagining marketing post-COVID
McKinsey & Company
Marketers need a new outlook to succeed in COVID-altered markets that should be driven by answers to the following questions:
- How should the brand’s vision and strategy be adapted to emerging trends and customer demands?
- How well do you know your customers at a meaningful segment level?
- What analytics capabilities do you have to not only identify opportunities but to act on them quickly?
- What kind of working relationships will the CMO need to forge with the CEO, CIO, CFO, and the rest of the C-suite so that reimagined marketing drives real growth for the business?
- How can personalisation drive the next order of customer experience in an increasingly borderless environment (home, stores, local, global, services)?
- Which channels and messages are most effective in reaching and influencing consumers across their decision journey?
- How can prices, products, and services be customized to changing needs?
- How will your organizational and operating model need to change to be quick and flexible enough to meet consumers where they are going to be?