The crisis that arose from the coronavirus (COVID-19) pandemic has profoundly influenced how business will be conducted in the future. Once the short-term survival of their organization has been secured, business leaders will be pressured to consider the potential impacts of this crisis on their long-term strategy.
But making fundamental strategic decisions is difficult at this stage – not least, because the situation is still so volatile. Everyone is forced to learn as they go along, relying on hard data and a healthy dose of gut instinct to guide them in the best approaches forward.
When the Movement Control Order (MCO) came into force in March 2020, businesses tried to respond to the crisis the best way they know how. Companies were driven to reset quickly to address immediate cash burn and attain a minimum viable business model within the shortest time possible. While this attempt at immediate gain is understandable, business leaders should note that new challenges arising from this pandemic call for a measured, practical and informed approach, especially if long-term gains are to be achieved.
Companies now need to move away from reacting to prepare for recovery, and ultimately rebuild to thrive in the new reality. Recovery will entail a self-assessment to come up with honest responses to these questions:
To help business leaders move from reactive short-term measures towards a recalibrated strategy for the long term, KPMG’s Global Strategy Group developed a framework to identify nine levers of value.
Source: KPMG International, Global Strategy Group’s framework for operational excellence and resilience
Five levers – Strategic and financial ambition; Clients and channels; Core business process; Operational and technology infrastructure; People and Culture – have been identified to be most significantly impacted by a crisis.
Ultimately, the framework is designed to help Board members and senior leadership align challenging financial ambitions with the core elements of a sustainable business model and the aspiration for operational excellence and resilience.
It is unclear how long this period of volatility will persist, hence the companies that can recalibrate quickly will be the ones to triumph in this unprecedented story. Those who get it right will see quick returns, and there will be little room for complacency in this new reality.