Four areas businesses can work on to build resilience and overcome the impacts of COVID-19
The COVID-19 pandemic has turned the business world upside down. The importance of resiliency at this time cannot be overstated as the economic environment is more dynamic and chaotic now than it has been in years. HSBC’s recent Navigator Survey examined the impact the pandemic has had on enterprises and explored the ways businesses of various sizes can build their resilience to overcome the hardships brought about by this crisis.
A key finding of the report was that British organisations felt a more acute impact from the pandemic than companies globally – with 83% of UK firms feeling it strongly versus an average of 72%. That said, most UK organisations did feel they were prepared. Since then, building resilience has been a top priority and could heavily influence the direction of growth given how uncertain the general business environment is currently.
So, how is resiliency defined, how were organisations building it before the pandemic struck and where should they focus moving forwards?
What does resiliency mean today?
Resiliency has always been a foundational pillar for any enterprise, and those that aren’t resilient will likely struggle to adapt or survive times of difficultly. HSBC’s findings show that, in line with global markets, UK organisations felt that resilience is built on the following platforms – customers, employees, agility and a strong balance sheet.
In line with this thinking, over the past two years, UK companies typically had three main ways of building their resilience – investing in technology, diversifying their business, and consolidating their financial position. Yet the COVID-19 crisis has in many ways been instrumental in catalysing what will be long-term changes. Enterprise leads are now more focused on the importance of having a strong culture – enabling firms to be more agile and responsive to change. Cultural shifts also enable emerging opportunities to be better realised. Technology and sustainability, for example, are both becoming more ingrained in how companies operate.
1. Updating working culture
This crisis has forced businesses to work differently. Media reports of companies announcing employees may permanently work remotely suggest this change will be here to stay. The survey’s findings similarly highlighted that more than two-thirds (67%) of organisations identified some form of flexible working becoming a standard practice.
The importance of a strong workplace culture post-COVID cannot be understated. Our research showed that low employee morale can be a barrier to building resilience. Bearing this in mind, employers cannot go back to business as usual. Rather they must rethink every aspect of the employee experience – from recruiting to onboarding, training to performance management to all the daily interactions that might impact how employees think, feel and work.
2. Maintaining the path to sustainability
Despite the pandemic, the trend towards sustainability has only been accelerating for organisations around the world. HSBC’s findings indicated that those who claimed to be well prepared for the recent disruption placed greater emphasis on sustainability than those who were less prepared.
Following sustainable business practices and transitioning to more sustainable models must be a priority for organisations. Not only does it benefit enterprise resilience but also creates growth opportunities – positioning companies to meet the demands of customers who are increasingly aware of sustainability and protecting them against any future regulations.
3. Adopting new technology
It’s safe to say that since the pandemic began, it has become wholly apparent that the ability of companies to operate is now intrinsically tied to technology.
Fortunately, there is a huge range of options, tools and services out there enabling businesses to continue to operate – from cloud platforms to video conferencing platforms. But many organisations struggled to get things such as laptops to staff in time to adhere to government guidelines advising all non-essential workers should work from home.
The adoption of technology and investing in innovation should remain top priorities for companies of all sizes over the next five years. This will provide the dual benefit of improving communications and relationships and automating repetitive tasks– thereby freeing up employees to focus on more innovative and meaningful tasks.
4. Reshaping supply chains
The major disruption caused by the pandemic has rendered supply chains a strategic issue for business leaders. However, there are several ways firms can prevent and detect disruptions in the future.
The first of these is the mapping of suppliers and buyers; by implementing such end-to-end visibility organisations can manage supply and demand more efficiently. In addition, the digitalisation of and use of data in supply changes will be key enablers in creating visibility for companies seeking to avoid a single point of disruption.
Finally, diversifying rather than restricting suppliers – something our research shows 1 in 5 businesses are already looking to do. This minimises the impact of one country or company being cut off. The goal of these changes is to enhance growth and spread the risk so if a disruption does occur its impact is minimised.
Through focusing on these four areas organisations from small to big can continue to build their resilience and begin to overcome the many impacts of the COVID-19 pandemic. Reworking their culture will allow them to be more open and agile to new possibilities such as new technologies and sustainability. In turn, these will enable them to transform severely impacted areas– readying them for any future challenges.
