In times of “hyper change”

It is time to set the course for sustainable economic success in a post-Covid world through entrepreneurial thinking and action.

Covid-19 is turning the world as we know it upside down. I can't hear the word Covid anymore and I'm sure you feel the same way, but unfortunately it's something you can't just ignore. Above all, you can't deny the profound changes it has brought about. Everywhere you look, sustainable change is taking place. Whether in education, where digital classrooms, which were once frowned upon, are now becoming the new standard, or in working life, where working from home no longer allows flexible work and career opportunities just for a small group of workers. It has become a valid option for organizing entire companies and offers a strong alternative to the traditional office, where every employee has a fixed workplace (why shouldn't half of the space be enough in the future?). Covid acts as a fire accelerator for the digital transformation of our society and is currently considered a leading driver of this transformation.

Accelerating change in companies.

On the other hand, there is widespread uncertainty among people, particularly in our western societies. The effects of the virus on our lives have caused sudden existential uncertainty for many people, which can trigger long-lasting trauma. This uncertainty attacks our needs and causes everyone on Maslow's Pyramid to fall a bit.

The fact is that Covid-19 has triggered a hyper-change that was previously unthinkable at this rate and has changed the value patterns of many societies forever. The massive effects on our economies and companies are now being felt. There will be no return to the time before the pandemic.

Now is the time to reconsider priorities for the next few weeks and even for the next few quarters.

COVID-19 has revealed its limits and weaknesses to organizations around the world. In a world where delays of just a few days can cause social and economic disruption, rapid learning is essential for survival. Resilience is no longer just a theoretical concept for most of us. We are painfully reminded of how fragile our old systems and processes are. Now is the time to prove that our goals and values aren't just empty words that last in good times.

Facing the changing conditions does not just mean securing one's own business and the survival of individual companies. It also offers the opportunity for new and great things. A look back shows that many changes have arisen from times of crisis and have produced new, strong market players. The Second World War produced not only jet engines, radar, penicillin, helicopters, pressurized aircraft cabins, synthetic rubber and much more, but also commercial aviation, the participation of women in the labor market, and many other profound social and societal changes.

A comparison with the SARS crisis of 2002-2004 is also necessary. SARS was primarily confined to Asia and accelerated the introduction of digital commerce and the rise of Alibaba. COVID-19 offers a similar opportunity for new players on a global level.

A turning point for progress.

Leaders in our economy are now faced with the task of activating their employees, creating a mission statement of hope and taking bold action if they want to use the pandemic as an opportunity for progress and not as a missed opportunity.

The transformation of the economy is at a turning point. It is time for companies to rethink their business models and adapt their systems to meet the challenges of this new reality. Strong leadership and an optimistic view of the future are crucial to mastering them and ensuring long-term success.

“The problem is not the existence of convictions, but what happens to us when we hold on to them without verifying them, when we assume the absolute primacy of our views and become contemptuous of others.” 

Sharon Salzberg

When it comes to this huge transformation challenge, we see the following trends:

Accelerating digital transformation

So far, digital transformation has been carried out at the discretion and pace of company management. COVID-19 is now setting the pace and urgent priorities need to be set.

Strengthen trust among consumers and partners

We see that systems built primarily to maximize effectiveness and efficiency tend to collapse under stress. What will the sustainable systems of the future look like?

Company purpose 

And what about the social purpose of companies? Before the crisis, many CEOs focused intensively on their own mission statement, multi-stakeholder capitalism and sustainability in response to global warming and other societal challenges. What value and what contribution does the company's purpose make in this crisis?

Getting started

The time is ripe for entrepreneurial thinking and action in order to set the course for sustainable economic success in the future. In general, you now have to face the systematic analysis of the company. We must consider how people's changing needs, changing social influences in our economy and on the markets influence the organization of our companies, our processes, products and, above all, our brands.

Resilience in times of crisis

For marketing, for example, there are seven topics that you can address intensively in order to find answers and a way out of the crisis and also to react to the new environment, new customers and increased social expectations.

1. Added value

Rethink your offering and consider how new incentives, such as a complementary service or a new sales channel, can make a difference and be relevant during a crisis.

2. Pricing

Respond to new customer needs — including with price reductions, discounts or waivers of fees — and consider how you can make a particular contribution to a post-corona period.

3. Target groups

This could be a good time to focus on your core business again, on the existing customers you know and need more than ever. Is there a particular need of your customers that you can demonstratively meet?

4. Communication

Make your communication more relevant. Tell your customers what your company, brand, and employees are doing during the crisis. Information, entertainment, and benefits are all powerful tools for satisfying people's primary need to stay healthy and cope with the concerns about livelihoods, the need for everyday products, and many other uncertainties that will accompany us in the coming months. Many brands are already relocating their services and offering their support in an open, honest, and helpful way.

5. Expenditure on advertising

It is expected that the media mix will shift towards reaching audiences at home, including digital ads, social communications, direct mail, television and streaming. What options does this offer you?

6. Measure success

What is important and what success will look like must be reassessed. Link gross income and profit with personnel costs, your image value and relationship indicators. More than ever, what you do for your customers and employees has the potential for long-term success.

7. organization

Is your team prepared for this situation? Can decision-making processes continue to be carried out in the same way as before? Do you possibly need new structures, a new identity, a new style or a new atmosphere in the company to maintain the effectiveness of your organization?

This is a unique opportunity.

Covid-19 has triggered a hyper change, which we should recognize as a huge, unique opportunity to reposition our companies and organizations. When we act quickly and boldly, we not only ensure their survival, but also create opportunities for new market leaders.