Functioning during a pandemic is the ultimate conundrum. While constant uncertainty, risk, and complexity complicates (and slows) every decision, the pressing need for immediate change, adaptation, and redirection never lets up. It’s a relentless balancing act between immediate survival and long-term success and the only sure thing is inconsistency. Amidst so many necessary adjustments, it’s difficult to know the best way to advance effectively as we are maneuvering through a pandemic. But, alas, advance we must.
Are baby steps the answer or is big change the way to go?
As we find ourselves maneuvering through a pandemic, on one hand, some baby steps are critical because problems continue to develop every moment that require urgent and immediate changes. While we are rushing to develop solutions, the nature and complexity of immediate goals has dramatically shifted. Safety must be at the forefront of every program and decision. Short-term financial constraints have become paramount while uncertainty is limiting most forecasting through 2021 at least.
Crises Response:
- With forecasting unavailable in a rapidly changing business environment, instant flexibility and response are crucial. For example, work-from-home, online shopping, and crowd avoidance will continue to evolve over the next few months.
- People management is requiring more quick decisions and administration. When, who, and how do you bring back staff? How do you make decisions and adapt the organization while considering factors like work-from-home, more volatility, and more uncertainty? Should you consider hiring creative types or especially skilled people who can offer new solutions?
- Pricing strategies during a pandemic are critical both in controlling costs and generating volume. In particular, you need to recognize new costs and new customer preferences; which will require analysis and measurement using multiple small trials. Consider alternative pricing tactics as well as the entire pricing package. Online sales, measurement, and flexibility will make these rapid changes executable.
- The latest trends in dealing with the crises also bias our decisions. For example, many businesses are executing 25% operating formats that most experts think will fail. Every business owner needs to continue to test a lot of alternatives that integrate expectations, uncertainty, psychology, culture, risk, quality control, consumer confidence, and values.
Planning ahead:
- Short-term small efforts must be integrated and designed with long-term strategies and operational efforts in mind. Start with a quick assessment of who you are and where you are going with your business. Don’t worry about the details. Just take a half hour or so and write down key goals, challenges, and opportunities. Make it short so you can focus on priorities rather than overwhelming yourself with too much. You can (and should) come back and revise this list frequently.
- Assess your potential profitability and financial needs. There are simple profit models that can help you easily determine your viability, key issues, and alternatives. In particular, the analysis should focus on the impact of various factors on your profitability and potential. One of the surprising aspects of this analysis is that growth and prioritization are frequently more important than cost cutting in business success.
- Focus on what you do well and eliminate efforts that will fail.
- Keep strategies and programs integrated. Issues like rent, supplier relations, marketing, operations distribution, etc. are critical and must remain flexible on a daily basis. And while finances may be tight, marketing could be the best opportunity for success. Additionally, collaboration with suppliers and landlords will be essential for success. Many tenants and landlords seem to avoiding each other, but I suggest negotiating new rent requirements and marketing efforts in order to survive and generate more business. There are also a number of marketing efforts that can be tested and purchased on a reduced or trial fee.
- A lot of great discussions are taking place regarding working-from-home, office spacing, and communication. However, most of the talk revolves around physical settings to accommodate spacing and other requirements. We need to also examine the impact on structure, communication, social interacting, and decision-making.
- The new normal must include tools that encourage informal communication in order to help develop relationships, build trust, encourage new ideas, and create safe feedback. Examples: some in-office meetings and social events, including part-time or other department staff, promote health and wellness, and develop community efforts to replace interactions that no longer exist such as “water cooler chats.”
- In general, I support developing confidence and taking more risk. In many cases, we overestimate the costs of failures and underestimate the value of success. Midst pandemic, constant uncertainty makes risk more prevalent in all decision-making. Make sure you understand the value, alternatives, and the probability. Similarly, analytics frequently ignores the potential of innovation and out-of-the-box-solutions. Adapt and be flexible. Most efforts won’t succeed on the first try, but practice integrating the positive components from each trial with some different approaches.
- Traditional organizations will most likely fail in the wake of the “new normal” because they are inflexible, hierarchical, and change too slowly. Walter Isaacson’s book, The Innovators, illustrates how commitment, diversity, collaboration, and friction among diverse participants such as Jobs and Wozniak or Gates and Allen led to success. The structural key to change is the need to be open to measurement and feedback. Looking at, understanding, and sharing financials, operations reports, and sales reports are the first step. Simple research studies and social media can be additional tools.
As we find ourselves maneuvering through a pandemic, the solution seems to be found in a paradoxical combination of immediate change and big baby steps. Inarguably, the slate needs to be wiped clean and new paradigms are a necessity. This will include immediate crises and opportunity management as well as long-term strategic considerations. A focus on cooperation, open collaborative systems, and trying to keep in mind that “smaller can be better” may offer hope for organizations as they restructure. Finding a way to stay afloat and, ideally, thrive during such a transformative time requires nuanced decision-making. You’ll need to find a balance between small steps, immediate action, gradual shifts, and drastic change while determining which approach works where and deciding if it’s a short-term response or a long-term solution. Sure, it sounds complicated, but that’s the nature of business. And you already knew that.
Dr. Bert Shlensky is president of www.startupconnection.net. He and his expert team help businesses develop integrated customer-focused marketing programs that are key to business startup success. He is also the author of the recently released book “Passion & Reality for Business Success.”