Adjusting to the new normal

Over the last 20 years, I have heard the word, “Disruption” multiple times. Various political and economic disruptions have happened over the last 2 decades. The world had been left shell shocked by these events, be it the 9/11 attacks or the Lehmann Brothers going under but the resilient human spirit has ensured that we have fought back. But the disruption that has left the world crippled due to COVID-19 is unprecedented. And hence I consider this particular event to be the mother of all disruptions. We have had Great Depression in the past and After Covid-19, decades later, this event will be known as The Great Lockdown!
Just like in the past, humanity will innovate and bounce back. As happens with any disruption, the way of life will change, and more so in this case, because this is a disruption that is way beyond anyone’s imagination. It’s quite understandable that many businesses will be wiped out. Some new businesses will crop up and many others will survive and come out stronger than before. So what are the strategies that one has to adopt to come out stronger after COVID-19?
Topic 1: How to run the business?

1. Companies in debt and struggling with cashflows will find it difficult to survive
2. Companies should have a minimum of 6-9 months of cash in hand.
3. Improve internal processes. Digital transformation is needed across all business processes.
4. Improve decision taking time.
5. Work on a leaner & smarter workforce.
6. Get rid of legacy problems of hierarchies.
7. Reduce fixed costs.
8. Innovate & change existing business models.
9. Management should be resilient & responsive to changes.
10. Reduce average age of workforce because younger people adapt to changes better.
11. Reduce CPP (Cost per Person).
12. Focus on team-building with the flexibility to learn and adapt quickly.

Topic 2: Survival Strategies (Planning for the worse):

1. Create a temporary financial plan for 1 year.
2. Cut fixed costs (Office Rents, Internet, etc.)
3. Communicate with the team and get them on board to ensure that seepage of work is at the minimum during Work From Home. All should plan and work smarter.
4. Future plans should be based on the fact that 25%-30% or more will work from home for more than 18-24 months.
5. Superior Customer Service.
6. Create innovative business plans to reach out to customers. Create win-win situations for both.

Topic 3: How Government can help?

1. Focus on Small & Medium businesses. These businesses are most vulnerable.
2. Income Tax and GST refunds should be processed as soon as possible.
3. Work with the banks and arrange more working capital for these businesses so that they can survive this onslaught.
4. Through EPFO accounts provide income support to the employees who are part of the MSME segment. This will help the companies as well because a part of the salary burden is taken care of.
5. For large companies arrange loans with a moratorium period.

Topic 4: Human Resource Functions during COVID-19

1. Effective Communication with the entire workforce.
2. Making the managers understand their roles & responsibilities effectively.
3. Arrange training for new skill development (Working with a younger workforce will help because they will be more interested to learn and adapt).
4. Make people understand that Work from Home is here to stay so take this as a new normal.
5. Be more technology adaptive and cut unnecessary meetings.

Most importantly, the managers/leaders should keep motivating their team not only to keep their spirits high but also to make employees understand that it’s important to learn new skills. Learning, sharing, and staying together as a team will ensure business continuity.
So what are the trends that we are expected to see in a business, post this Great Lockdown?

1. Customer Service will get better.
2. Companies will have leaner and smarter teams in place.
3. Managements are expected to be more flexible & take quicker decisions.
4. Contractual work will increase.
5. 30% or more people will Work from Home forever.
6. Productivity to increase due to Work from Home.
7. Some business functions will cease to exist and the workforce in those functions would need to get themselves re-skilled.
8. Enabling technology across departments.
9. Time management will improve because coffee shop meetings will cease to happen.

Do you think I have missed out on anything or any points? I would love to hear your views!
Till then, Stay Safe all of you!
 

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