In my first blog from this year’s Collision1 from Home conference I highlighted the urgent need for courageous leaders to guide us through the disruption in our new reality. The need for courage was closely linked with the reality of ‘acceleration’ – acceleration of advanced technology, acceleration of new workplace models, accelerated growth in some industries and declines in others and accelerated adoption of digital social interactions.
Insights about why courageous leaders are needed in this hyper-accelerated world is the subject of this second blog from Collision from Home.
As Armughan Ahmad (Canadian Managing Partner, Digital and Technology Solutions, KPMG in Canada) described it in the ‘Future skills for a new reality’ roundtable, the education system and corporations have had to accelerate their digitization efforts due to COVID-19. Both now also have a responsibility to ensure that they are upskilling their talent in order to thrive in the new reality.
Armughan summarized four key digitization trends that weaved their way throughout the conference.
Consumer behavior and expectations are accelerating rapidly as well, which is why Rishi Khosla, Co-founder of OakNorth Bank, has suggested that finance will never be the same as we enter a new reality.
The financial crisis for SMEs highlighted the absence of relationships and connections between small and medium businesses and banks, Rishi said. In the 1980s, it was common for bank branch managers to take care of a small number of small-business customers. They reviewed their business plans and were well aware of their customers’ funding requirements.
In the 1990s, most banks took away the knowledge that was in the field and replaced it with computer-generated cash flow analyses and a “computer says no” approach. Rishi said that a great deal was lost in this centralized decision-making model by taking away the direct customer knowledge and relationships. It is his belief that the new reality will bring back the vital importance of customer relationship-building given the urgency to help entrepreneurial businesses grow.
The effects of COVID-19 continue to be felt around the globe and all types of organizations, well beyond the banks, are making every effort to anticipate and prepare for the changes that are coming in their customers’ needs, behaviors and preferences. A new report entitled “Consumers and the new reality” was released recently by KPMG and it digs deep into issues such as these:
There is no doubt that hyper-acceleration requires resilience for business survival and future success, the agility to evolve over time and respond quickly when circumstances change. If you’re interested in reading more about resilience in a hyper-accelerated environment, I think you’ll find the KPMG COVID-19 Guide to Maintaining Enterprise Resilience (PDF 3.9MB) to be useful tool.
We at KPMG Private Enterprise have always believed in the tremendous possibilities for entrepreneurs and emerging growth companies. I encourage you to follow our regular KPMG Private Enterprise series of blog posts as we share insights from across KPMG member firms on the impact that COVID-19 may have on your business strategy and operations, and how to embrace the new reality of a post COVID-19 world.