Strategy review in the corona pandemic
The future is uncertain. But it is certain that organizations will have to adapt their business models to survive during and after the corona crisis. Strategic responses to different future scenarios are required to guide the company through the crisis and to secure it for the time to come.
WHY IT IS ADVISABLE TO CONDUCT A STRATEGY REVIEW RIGHT NOW AND WHICH GUIDING PRINCIPLES LEADERS CURRENTLY NEED TO CONSIDER
The coronavirus continues to dominate our lives. At the moment, hardly anyone expects us to return to the old normal in a few months’ time. Instead, we must now learn to deal with the “new reality” and gain an understanding of the extent to which this “new reality” will persist in the future – and what this means for us and our organization.
This involves addressing relevant questions:
- Which changes in our business areas must we prepare for as a result of the corona pandemic?
- Is the current course of our organization still realistic?
- Do we have to adjust our goals or the way we are planning to achieve them?
- How can we keep our organization healthy under the conditions of the new reality?
In our strategy review, we work together with you to develop reliable hypotheses on the development of your markets and the behavior of your customers. This allows us to question your strategic positioning in the light of the “new reality” and to realign it, if necessary. On the one hand, this will ensure the long-term viability of your organization in the current recession, and on the other hand, you set the course to be able to profit particularly from the expected economic recovery from 2021 onwards.
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Much depends on whether a second outbreak occurs and when or if science will find a vaccine against the virus or a drug to treat COVID-19. The virus is unlikely to simply disappear. On the contrary: Michael Ryan of the WHO recently stated that the coronavirus may become endemic. This means that we must learn to live with it.
”THIS VIRUS CAN BECOME ENDEMIC IN THE POPULATION, IT MAY NEVER DISAPPEAR AGAIN.”
– Michael Ryan
World Health Organization (WHO)
The coronavirus has spread all over the world at a rapid pace. For several months now, we have been living with the restrictions that serve to combat the pandemic, but at the same time have a massive impact on our everyday and professional lives, on the economy, and society. Much of what applied before corona is outdated today. The focus of many companies was recently on coping with acute challenges and trying to find a way to deal with the pandemic. In the meantime, the first routines have become established and buying behavior in certain industries has changed massively. It is now important to take advantage of this momentum.
In view of the upcoming months and years, organizations are called upon to question their strategy against the background of the following four scenarios and, if necessary, to proactively adapt it to the new conditions in order to maintain future viability.
These four scenarios have very different effects on markets, customer behavior, and the general economic environment – they, therefore, require strategic positioning.
Accordingly, the clarification of the following key questions is of great relevance for organizations:
- Which scenarios are most probable for you in the short, medium, and long term?
- Which of your business areas are relevant for you and which are affected by the corona pandemic?
- Which changes can already be observed in the respective business area today?
- How are your business areas affected by the pandemic in the respective scenarios in the short, medium, and long term?
- What assumptions do you make today about trends and developments in the respective business area in the short, medium and long term, depending on the particular scenarios?
The answers to these questions can vary greatly depending on the scenario – and, therefore, require different strategic positioning.
Our flash survey on the economic impact of the corona pandemic shows that the majority of the surveyed entrepreneurs do not believe that we can expect a vaccine or a drug this year – that we will have to accept far-reaching restrictions until at least 2021. Even if a vaccine or a drug were to be found during this period, we will still have to struggle with the effects of the corona pandemic. On the one hand, it will take some time before a sufficient part of the population/world population can be supplied. On the other hand, the risks of a secondary disease cannot yet be assessed. All of this will have a massive impact on the “new reality”.
After about six months with the coronavirus, strong economic dislocations were already evident in June. According to an OECD forecast, GDP in Germany is expected to fall by seven percent and worldwide by as much as 30 percent.
Many organizations are suffering massively from the effects of the pandemic, as they are currently unable to provide their services in the usual way, for example, because supply chains are affectedaffected, or their services are simply no longer in demand. According to Euler Hermes, there were already ten percent more insolvencies in Germany than in the previous year.
You can download further findings and analyses of the current situation using the form.
The feedback from the corona flash survey and the online dialogues on the economic impact of the corona pandemic show that there is a great need for a strategy review. In addition, answers are being sought to the question of how to establish an agile corporate culture so that it is easier for the organization to adapt flexibly to constantly changing market and customer requirements. With the following offering packages, we support you in successfully equipping your organization for the “new reality”:
Download the results report of the flash survey on the economic impact of the corona pandemic on various industries and companies.
In terms of system theory, organizations are formed around social problems – the solution of these problems is the basis of their existence. Organizations are successful when they provide valuable solutions and services for social bottlenecks or needs. However, if these disappear or change, as is the case with the corona pandemic, the established conditions shift. Some organizations disappear, while others that offer smarter solutions reap the benefits or come into existence.
”THE CORONA PANDEMIC WILL LEAD TO FAR-REACHING UPHEAVALS IN THE ECONOMY AND SOCIETY – SOME ORGANIZATIONS WILL DISAPPEAR, OTHERS WILL EMERGE AROUND NEW PROBLEMS.”
– Markus Peterhänsel
COO | Head of Strategy and Organization
Crises are always also opportunities and it is not (only) the big players who win but above all those who prove to be fast, agile, and adaptable.
Some examples of creative solutions in the corona pandemic:
- The rapid switch to video conferencing instead of face-to-face meetings
- Returning to regional producers to ensure a reliable supply chain without delays caused by border controls or other events in the producing countries
- The switch to out-of-home consumption in the gastronomy
- Museums or world heritage cities and monuments for which digital tours have been constructed
- Online concerts from the artists’ living rooms, partly with appeals for donations to support the local cultural scene
- Textile companies that dedicate their production in whole or in part to community masks
- Schnapps producers who switched to the production of disinfectant when supply of disinfectants was running low
- 3D printing companies that produce useful everyday items for pandemic containment or medical products such as respirator parts
Necessity is the mother of invention. Even companies in which mobile work/home office was taboo have set up hundreds of mobile workstations in a very short time. We observe that companies are currently implementing changes that were hardly imaginable before the corona pandemic. Some of these achievements will certainly find their way into the “new reality”.
In addition to coping with acute challenges, which many are already tackling in creative ways, leaders are currently challenged to simultaneously construct and shape the future in order to remain competitive.
”A COMPANY WITHOUT A VISION IS LIKE A FULLY OCCUPIED SHIP ON ROUGH SEAS WITHOUT NAVIGATION.”
– Robert A. Sedlák
Guest Professor at ECNU, Shanghai | CEO SEDLÁK & PARTNER
Leaders face the challenge of dealing with the current ambiguities and uncertainties in order to maintain liquidity and performance for the current day-to-day business. At the same time, it is important to proactively make the right decisions and to initiate measures that enable the organization to construct its future.
Leaders are required to intelligently manage the balancing act between dealing with daily challenges and designing a new future.
If you would like to learn more about us and our consulting approach, we look forward to a personal conversation with you! Simply make an appointment with us.
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Ergebnisbericht zur Kurz-Befragung zu den wirtschaftlichen Auswirkungen der Corona-Pandemie