In the wake of the Covid-19 pandemic, the global economy still has months, if not years, to recover from the state it was in at the beginning of 2020. It has been evident that companies have had significantly lower incomes, structures depleted capital and reduced productivity and employee morale.
While some well-positioned companies have prospered during this stage, most middle-market companies have not. As the world emerges from this situation, business leaders must prepare for both growth and resilience.
Resilience is the ability to protect and increase value in the face of rapidly changing external conditions.
To develop and maintain your business it is important to minimize disadvantages and at the same time maintain the ability to act on opportunities that may arise for your business.
To build and maintain resilience in your business, you need to focus on four key pillars.
• Culture
• Leadership
• Change
• Discipline
Culture
It is the personality of your company Culture is the sum of all the beliefs and behaviors (at all levels of the organization) that shape your company’s strategy and actions. Your culture is like the “personality” of your company and can be a help or a hindrance to your success.
Validate or review these three pillars based on the impact of Covid-19 on your business.
Make sure you have buy-in from across the organization, clear two-way communication between you and your employees, and agreed-upon accountability.
Create deep connections for all employees by identifying specific ways they can contribute to your company’s mission, values, and vision.
Leadership
Culture and leadership are inextricably linked, so close attention must be paid to leadership at all levels of the organization. Culture is affected by both line managers and executives, and your company culture plays an important role in business growth and resilience.
As was the case last year, 2021 is likely to feature a lot of uncertainty, so as you focus on leadership, keep these ideas in mind:
Before you can implement positive change, you must determine exactly what change is needed in your business and how quickly you need to achieve it. For example, traditional brick-and-mortar retailers have had to quickly adopt online retail, new efficiencies in the delivery of goods, and new approaches to customer acquisition to survive the sudden decline in in-person shopping. And many of those retailers that couldn’t change fast enough were forced to declare bankruptcy.
They are logical and tactical: consider the key levers available to effect the change you want. Some examples include increased revenue due to an improved customer retention program or increased employee retention due to a stronger employee incentive program.
They planned it well: they laid out a clear and understandable plan with logical milestones and meaningful metrics. If you and your employees don’t develop them together, make sure your milestones are feasible and acceptable to gain buy-in across the organization.
They focus on people: make sure you have the right people in the right positions; You may want to choose people based on both their mindset and their skills and abilities. Consider rotating people into new positions to give them the opportunity to meet challenges and grow.
They include recognition and rewards: don’t neglect the ongoing support of your team; This can be in the form of resources, recognition or guidance. And don’t forget to celebrate successes with something more substantial than an “employee of the month” reward. Consider incentive plans with real value, such as phantom stock plans or company stock.
