We’ve seen a multitude of change since the start of the Pandemic and it’s continuing to come full speed. Although change is inevitable, we must work to remain equipped to handle the drastic and rapid post-pandemic change we’re experiencing. To do this, there are some areas that deserve our concentrated attention.
Here are some current realities that continue to change and will require us to pay attention, keep up, and take action:
The pandemic is over 18 months old and is not yet over. It will undoubtedly have dramatic long-term effects on our society in ways such as continued stress, virtual work and school from home, vaccines, and new social norms and public regulations. Schools are already planning to cancel snow days and utilize e-Learning when weather is bad. A multitude of businesses are requiring proof of vaccination to enter—this includes restaurants, bars, sporting events, concerts, etc. We need a better understanding of issues and responses to post-pandemic change.
Technology is accelerating and will have long-term effects on our economy as well as our lifestyles. Tech companies like Facebook, Microsoft, Google, and Amazon are dominating. I just got the holiday wish list from my grandkids, which includes a new iPad and phone. Apparel, trips, and personal gifts are lagging while tech leads in sales.
Climate change, slower population growth, and more diversity are significant features of our society. Except for Africa, much of the world is getting older and experiencing slower growth than in previous decades.
Equitable policies and opportunities. The general response to ignore these and other critical issues is unacceptable. Political, social, and economic change are dramatically slow. For example, the time it has taken to adequately address discrimination against minorities and women is embarrassing. Sexual harassment policies and enforcement are decades behind where they should be. 18% of the population is Hispanic and they are virtually ignored.
Stress levels are heightened as evidenced by increased crime, suicides, shootings, drinking, and divorce.
Wealth inequality around the world is increasing and no one is doing anything to stop it. The number of billionaires increased from 1,000 to over 2,000 between 2010 and 2020. Their wealth grew from $3.7 trillion to over $8 trillion. The top 10% represent 80% of the wealth in our country making wealth and income very different things.
The most perplexing part about all of this is that there are solutions to most, if not all, of these problems. We simply refuse to adapt or we adapt too slowly. How have we done a good job in reducing things like car fatalities, drunk driving, diseases like Polio, etc. when we seem completely unable to reduce bullying, illiteracy, poverty, discrimination, gun violence, and climate change?
Not only do we need to possess the willingness to embrace change, we also need to be equipped with the tools that will enable us to react to change and create an action plan to keep up. Here are some suggestions to improve the speed and effectiveness of change and adaptation:
Consider structural changes. For example, there are numerous articles and books on how elite universities recruit and educate the top 1% with little progress in growing or expanding diversity. They also have billions of dollars in endowment and have been growing their endowment funds at rates of 20-40% per year recently and, yet, they are doing nothing to enact change.
In contrast, Mackenzie Scott (Jeff Bezos’ ex-wife who has $60 billion) is changing the structure of charitable giving. She is a disrupter in that she focuses on equality, gives only unrestricted gifts (no building or school names), and donates significant funds to lesser-known institutions, like black colleges, to help transform their entire organization.
Focus on reducing stress. The pandemic has caused significant stress and unhappiness and we need to take action to reverse some of that damage. My neighborhood has made an effort to increase socialization, warmth, and fun. They sponsor holiday parties, social event, networking meet ups, etc.
In general, friendliness, courtesy, and decency could significantly improve things. Greeting someone hello, saying please/thank you, giving hugs, checking in on neighbors, and offering to lend a hand really goes a long way.
Prioritize the 80-20 rule. In the modern business realm, it has been proven time and again that 80% of business revenues are generated by just 20% of our customers. Yet, we all continue to waste time, money, and inventory dollars on customers that bring in a lower return. This tendency frequently adds unnecessary confusion and complexity.
By focusing on the products that you know your customers want, you’re making them feel much more confident—especially when you’re selling online. Instead of finding new ways to market products that simply aren’t selling, you may be better off pivoting and concentrating solely on what is selling. If you give people what they’re searching for, they’ll buy. If you don’t, they won’t. It’s that simple.
Remember technology is king. Amazon, Google, Facebook, and Apple will survive and grow as they become even more innovative and efficient. Traditional retailers with large real estate platforms and margin requirements are at great risk. Consumers are proving to prefer the perks of working at home, fast delivery, and other convenient Internet processes. Virtual offerings will continue to expand and be utilized and, therefore, they must be integrated into our structures.
Assess your digital branding and Internet presence. If you research anything about business today, it’s obvious that Apple, Google, and Amazon are three of the most important sales and communication vehicles. Nearly everyone uses their phone and/or laptop to research as well as buy products and services. I argue that digital activities and marketing need a special place in organizations and should be a major part of programs.
Don’t forget that service, image, andculture are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Some suggestions: Focus on your target market and segment your ideal customer. Be polite, listen, and then act based on what you have learned. Become a trusted resource to your prospects by providing useful information that will help them make a good choice. Build an email list and send informative mailings on a regular basis. Keep in touch with potential and existing customers.
Creating and maintaining a positive company culture is a critical component in achieving excellence and establishing a great brand. A great strategy without a supportive culture will undoubtedly fail—I’ve seen it happen too many times.
Open systems are also becoming a critical aspect of great cultures as they often reject bureaucracy, authority, and hierarchy. Open systems encourage participation, diversity, new rules, and to some extent, chaos.
The post-pandemic change we’re seeing should be viewed as a critical opportunity to improve sales, profit, and competitive positioning. While there are some technical aspects to this, it is the thinking and integration of the components that can lead to success. This should not, however, become an excuse for ignoring basic good practices. Too many small business owners are getting burned by executing untested marketing strategies—and while it can be easy to get enamored with the latest technology or fad, don’t forget the importance of factors like analysis, expertise, and experience.
The current state of the world and the rapid advancement of technology are stimulating perpetual change that cannot be ignored. But, with the right mentality and a willingness to incorporate tools that will help you successfully adapt, you can thrive in this new normal.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward. We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
The word “uncertain” doesn’t usually give us much hope. It implies instability, insecurity, and vulnerability—all things most of us try to avoid. But, perhaps, we can find a way to embrace uncertainty and find a way to make it work in our favor.
As we forge ahead into 2021, there will certainly be a significant amount uncertainty. Generally, we try to predict future trends based on recent past events. However, 2020 had such immense disruption that it is almost useless to use it as a base. Many argue that this uncertainty causes pessimism and lowers expectations. However, I argue we need to embrace uncertainty, as it creates opportunities and should incite positive expectations.
Why? Well, let’s take a look at the following paragraph describing American economic trends: “Despite this prosperity, major shifts were occurring in American business and the workforce. Preexisting corporations were merging and becoming larger, more powerful conglomerates. Consumers increasingly were doing their shopping at discount chain stores and their dining at inexpensive fast-food restaurants, leading to a decrease in the number of single-proprietor businesses. Meanwhile, manufacturers were relocating from the Northeast and Midwest to nonunion Southern states, taking jobs with them and robbing industrial cities of their vitality. Manufacturers also were opening factories in foreign countries to take further advantage of cheap labor. These shifts led to a decline in the power of unions.” (The 1960s Business and the Economy: Overview | Encyclopedia.com)
While this could describe much of today’s economy, it’s actually a description of the 1960s. It shows progress after disruption and it’s arguable that the 1960s had even more disruption than we have currently (consider the assassinations, civil rights, wars, and general social change). After major turmoil, we still achieved more growth, technological improvements, and social change than we’ve seen today. I believe that the stress we’re currently experiencing as a country could produce the same excitement that we saw in the 60s. On the other hand, it may be difficult to replicate Kennedy, the Beatles, a moon launch, the computer explosion, Martin Luther King Jr., and some of the other revolutionary changes that took place during that decade. But, history repeats itself…
And, historically, change usually occurs after disruption (and we have most definitely experienced a lot of that). In my own experience with corporate turnarounds, it’s much easier to motivate, innovate, and develop collaboration in troubled or changing organizations than within those whose culture is based on the closed-minded rule of “we’ve always done it this way.” It’s amazing how many individuals and organizations have incorporated new efforts like E-commerce, work-from-home, Zoom, etc. in order to adapt to the times and, as a result, have actually improved their results.
While we tend to focus on the negatives, there are many circumstances that should create a more positive environment if we learn to embrace uncertainty. The most significant may be the coronavirus. I suggest we focus our planning on the potential of the vaccine by spring or summer more than the tragic experiences of today. In other words, rather than just worrying about the possibility of shutting down in the near future, we should be adopting a mindset of: How do we keep a business viable today in order to thrive in the fall? How do we learn to embrace uncertainty?
I recommend focusing on these three areas that create significant opportunities for positive thinking: technology, expectations, and analytics.
While we seem to constantly advocate for technology, I think we underestimate it. For example, financial advisors continue to advocate balanced portfolios with traditional companies and bonds, but here’s the reality:
In 2016, if you had invested $10,000 in each of P&G, G.E., G.M, and Exxon (all among the leading companies of the day), it would be worth $35,000 or a loss of about $5000. If you had invested the same amount in Amazon, Google, Facebook and Microsoft, it would be worth $169,000 or a gain of about $139,000. If you had invested the $40,000 in 3% bonds, it would be worth about $46,000 or a gain of about $6,000. Yet, advisors tout Exxon as a great opportunity for 2021 despite the growth in electric cars, energy saving efforts, and reduced energy consumption.
Pay attention to areas like E-commerce, A.I., infrastructure, medical research, etc. These will produce dramatic opportunities for growth and investment.
Positive Expectations are a critical cause of growth and success. Venture capital, increased risk, and positive thinking can produce dramatic results. Low interest rates and inflation have had a huge impact on reducing actual risk. My favorite musical has always been My Fair Lady because of the Pygmalion effect, which infers that having positive expectations leads to enhanced performance, which results in a higher probability of success. The implication is that confidence and energy will increase if we believe in ourselves. On the other hand, a negative self-perception results in a significantly lower chance of succeeding. What we think we’re capable of, therefore, basically becomes a self-fulfilling prophecy.
Technology and expectations can be enhanced with improved measurement and analysis. Some simple ways to implement analytics: review goals, probability, risk, and measurement. Basically, ask yourself how you’re doing and where you can improve.
More advanced analysis, testing, and measurement may include creating more dynamic and interactive efforts, which can boost the development of strategies. Allowing for failure and considering alternatives can also be useful. Incorporating operations, customer service, branding, and pricing in decision making can create new, successful approaches. Accept this fact now: Mistakes will occur. So what? Learn from them and move on. Mistakes are only bad if you keep making the same ones.
So, you see, positive expectations can have a dramatic impact on success. Yes, there is uncertainty ahead, but when has there ever been zero uncertainty? A feeling of security at any given moment doesn’t actually equate to certainty. We can’t predict the future and we don’t know what tomorrow holds. There will always be uncertainty, so embrace uncertainty and trust that the “unknown” is where possibility lives. Facing unexpected change is the fastest way to determine if you’re a pessimist or an optimist. What will you be? A defeatist or an opportunist? Why not try expecting greatness? Expect it from yourself, from others, and from the universe. Because when you expect it, it’s easier to find.
Please visit our website www.startupconection.net to book a Free Session in which we can help you develop an action plan that will evaluate potential and risk. We always discuss process, expected outcomes, and cost before you make any commitment.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
“The 1960s Business And The Economy: Overview.” Encyclopedia.com, www.encyclopedia.com/social-sciences/culture-magazines/1960s-business-and-economy-overview.
I live in New Rochelle, New York and was part of the first quarantine after the pandemic hit the United States. I think, because we were first, our neighborhood may have learned to cope slightly better than some other areas. We walk, we talk, we shop, we distance. We wear masks and, in general, we seem to be much more supportive of one another than what seems to be happening elsewhere. People were even helping each other during the power outrage that lasted several days. I am diabetic and three of my neighbors with generators offered to store my insulin. I talk to people from other neighborhoods and, from what I’ve heard, many of them could be coping better with the impact of the pandemic. I’m not referring to the poor and the sick, but people who are still working, but stressed out far too much.
But, how do you improve your coping strategy amidst so much uncertainty and tension? A good place to start is to manage your expectations and focus on the things you have control over. In recent years, the U.S. experienced 9-11 as well as the 2007-2008 economic decline. Both of those events caused short-term disruption and long-term consequences. We are now seeing the same things happening with the pandemic and there are three key pandemic impact areas that I think should be considered as we forge ahead:
1.The most important factor is simply the pandemic itself, which is causing dramatic health, economic, and social consequences that will last through much of 2021, if not longer. There have already been approximately 200,000 deaths in the U.S. and we aren’t even close to a vaccine yet. There’s also been a shift in healthcare with Tele Visits becoming the new norm. Even if a vaccine does become available, healthcare will never be the same. Nursing home protocol, hospital financing, and virtual medical care are among the areas facing significant change. For example, it is even estimated that births in the U.S. will decline by about 500,000 or 10% in the next year.
2.Another major impact will be economic. While much of the economy is slowly returning, industries like entertainment, travel, restaurants, and sports will undergo dramatic change. We have no idea when and how these businesses will return, but they will certainly be quite different from what they once were. For example, it is estimated that there were 600,000 restaurants in the U.S. before the pandemic. At least 20-30% will probably close within a year. Similarly, most forecasters are predicting 6-10% unemployment next year.
Additionally, working from home has become a major social phenomenon that will definitely impact the economy. People have learned that they can stay home and be more productive while having more time for themselves. This is a result of not having to commute, reducing meetings, and eliminating long lunches. Many are estimating that work-from-home could replace 20-40% of office work, especially for the next two years. This will result in several byproducts including a decline in real estate and urban stores. And as more people move to the suburbs, several other markets could dramatically be affected as well.
The greatest impact, however, will most likely be the continued growth of income inequality. The thirteen wealthiest Americans increased their wealth almost $1 trillion dollars since the pandemic started. In contrast, the poor have increased hunger, loss of healthcare, and unemployment (especially among minorities).
3.The third key area is political and many do not want to discuss it because there is too much emotion and uncertainty attached to the subject. However, the election this November will have a dramatic impact on our society. Our lives will be affected drastically based on who is elected—and this applies on a national, state, and local level. Minimally, there could be more diversity and focus on areas like criminal justice, income inequality, health care, and education. While partisan politics will probably increase, it is always important to focus on solutions rather than rhetoric after elections.
Now, how do we deal with all of this pandemic impact when we don’t know the what, when, or how surrounding them? The most important thing you can do is to recognize change and deal with it. Don’t be surprised or stressed out by the changes because they’re not going away. So, consider alternatives and ensure that you relax. Accept that the next several months will be like “flying an airplane while you are building it.” Sure, that might sound scary, but try to shift your thinking. Attempt to approach daunting situations like they’re challenges rather than obstacles.
Accept the inevitable and search out opportunities. E-commerce, delivery, work at home, and tech are all growing. My local pizza parlor added lobster Wednesday night, a friend in advertising is doing yard signs for drive-by parties, drive-in movies are doing well, and other events—like virtual baby showers—are becoming popular. Companies are developing all kinds of programs in addition to Zoom that will make working from home more effective. Embrace your challenges and set your mind on problem solving.
Consider the increased opportunities for risk during this uncertain period. Basically, everything is pretty much up in the air anyway, so what do you have to lose by taking more risk? Additionally, there are lots of opportunities in areas that are permanently affected by the pandemic. Home delivery, virtual technology, and online shopping are all currently booming businesses. Even the gains in the stock market have shifted to new companies like Zoom and Tel-a-Doc.
“How will you ever know whether you’re a flying squirrel if you don’t give it a shot?”
In this rapidly changing environment, you should also do a brief self-assessment to evaluate your status quo and consider potential changes. The purpose should be to better understand challenges and opportunities rather than simply make changes. This review might include looking over your resume, evaluating your employment status, assessing potential changes in your status, education, and living environment. You should also consider what you like about yourself, your job, and your employer.
Extra Credit: Do something nice and maybe even outrageous for yourself. You probably used to spend gobs of money on restaurants, sports, travel, clothes, gas etc. that you aren’t spending now. Consider an extravagant treat for yourself. A special meal, a trip to the gourmet grocery, a health/spa treatment, a new pair of shoes, or a chauffeured car tour could all be nice distractions during this crazy time. (There are limits, however. I passed on a $50,000 chartered trip to California… and that was before meals and hotels…)
While we’re not sure what the new normal will require, we do know many of the opportunities and challenges. Avoid guaranteed failure with obsolete or doomed activities and, instead, embrace innovation, testing, and new paradigms. These cultural changes must include openness, infrastructure, and measurement. And cut yourself some slack and be kind to your neighbors… these are difficult times for us all.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. This combination has been the key to client success. We welcome comments, suggestions, and questions. You can write him at: bshlensky@startupconnection.net or call at: 914-632-6977
The pandemic is rapidly teaching us that personal, organizational, and structural change is going to be tougher and faster than expected. Consequently, we must accept that dramatic solutions are necessary to manage, what is now, an entirely new landscape. We all need to be adapting to the pandemic.
There are several significant changes that have already occurred (and are not going to disappear in the near future) that are worth taking into consideration:
We are implementing financial deficits at local, state, and federal levels that, prior to this, were never considered acceptable.
Health care and service workers are receiving (long overdue) recognition and appreciation. Experts are also saying practices like home care and virtual appointments, which are eliminating marginal procedures and improving efficiency in medical care, will become a more permanent standard.
Social distancing policies are forcing behaviors such as hugging, kissing, and shaking hands to be revolutionized and avoided.
The magic word seems to be “remote.” Tele-doctors, homeschool e-learning, working remotely, food delivery and pickup are becoming the new normal, but standards, expectations, and productivity are still unstable and unsustainable. Adjustments will need to be made to accommodate shifting trends and other obstacles. For example, many pizza parlors are experiencing dramatic increases, but the volume is mostly at dinner rather than a steady all-day flow. Parents are finding it difficult to work while simultaneously caring for their children. And, teachers are struggling to manage students and cover the same amount of material in a virtual classroom.
On one hand, we need faster and more dramatic change. On the other, we need more science, testing, and technology to ensure success. Imagine how an increase in things like control groups, curves, models, and logistics could improve our effectiveness and efficiency as we are adapting to the pandemic.
There are several key areas where dramatic and structural change will be necessary to adequately adapt to a vastly changed environment:
The most dramatic (also evidenced in the 2008 financial crises) is that the big will survive much more effectively than the small. In the last few decades, the number of banks and public companies has reduced by over 30 percent. In contrast, the number of restaurants (about 600,000) has remained the same for years. It’s estimated that 10-20% of those and other small businesses will not survive this crisis. That will significantly alter the opportunities and challenges of small business.
We need to focus more on efficiency and restructuring over simple cost reduction. Amazon and other tech companies have become the main targets of criticism regarding questionable practices. However, we should also recognize their contributions in expanding things like communication, home delivery, cloud sharing, etc. For example, I have a consumer products client who has lost much of her retail business. However, she has more than offset it (via sales on Amazon and on her own website) with higher margins and lower prices.
Better management of increased risk and uncertainty is required. Companies are unwilling and unable to forecast 2021, which makes 2022 equally uncertain. Thus, capital, operations, personnel, and marketing decisions are basically on hold. However, we can look at history, industry, and probability models to provide a little more predictability. In particular, looking at alternative scenarios and their probable outcomes can be a valuable effort.
Technology will be king. Amazon, Google, Facebook, and Apple will survive and grow as they become even more innovative and efficient. Traditional retailers with large real estate platforms and margin requirements are at great risk. Consumers are enjoying many aspects of the work-at-home, delivery, virtual lifestyle. These conveniences will be expanded and must be integrated into our systems.
We need to face tough decisions in maximizing our success. While the specifics may be uncertain, most organizations require more technical and analytic skills. Can you provide challenges and opportunities for your best people rather than drowning them in bureaucracy? Can you retrain or replace staff who are less effective? How can you create a supportive culture that values risk-taking, innovation, diversity, and embraces the importance of learning from mistakes?
Learn to prioritize. What is working, what is failing, and how do you devote more resources to the successes? Sometimes our fear of change limits our effort to understand that opportunities, not challenges, have the greatest impact.
The most important aspect of adapting to the pandemic that we’re currently experiencing is to recognize its significance and aggressively find solutions. It does require an openness and willingness to test new ideas. Don’t let emotion or bias affect you. Remember that passion, energy, and commitment are strong determinants of success. Take comfort in the fact that risk can be reduced greatly with testing, research, and analysis. And embrace integrated approaches that incorporate new strategies and activities. As Sheryl Sandberg said:
Dr. Bert Shlensky has an MBA and a PhD from the Sloan School of Management at MIT. He is the President of the New York-based consulting firm, The Startup Connection, where he uses his 30 years of high-level business experience to guide his clients toward maximum sales and profit. For a free consultation, please visitwww.startupconnections.net.
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"I'm not as interested in the strength of the economy as in whether it's on my side."](https://i0.wp.com/startupconnection.net/wp-content/uploads/Im-not-as-interested-in-the-strength-of-the-economy.jpg?resize=725%2C236&ssl=1)
