Uncovering New Opportunities - The Case for Business Transformation
2020 has been the great accelerant to socio-economic change. This challenging, disruptive and unique year has dramatically changed how people live, work, shop and relate to each other. Businesses must move fast to catch up and be ready for the inevitable change that 2021 will bring. While a few companies may be able to thrive and survive with simple tweaks, the majority will need to implement significant business transformation in order to return to sustained growth and profitability.
Just last month (December 2020) a Deloitte survey of 3,600 executives in 96 countries found that 61% are focusing on transforming the workplace (double pre-pandemic levels). The primary focus is on building a better workplace and investing in human resources. While workplace transformation is key, now is also the time to take a hard look at what you sell (products), how you sell (sales and marketing), and your manufacturing and distribution systems.
Every major change we have seen in the past year has driven a cascading chain of both positive and negative impacts in the marketplace. A few examples:
COVID has restricted or stopped indoor public gatherings
Outdoor activities (hiking, fishing, biking, etc.) participation/spending has exploded
Music, movie, restaurant and gym businesses have been devastated
COVID has closed offices and now millions work-from-home (WFH)
Traffic is greatly reduced, gasoline sales are down and we see a reduction in air pollution
Athletic/casual apparel (sweats) has spiked while business casual has tanked
Historically high unemployment levels
Millions of people are in a state of financial hardship and have been struggling to pay rent and put food on the table
Those that are employed have fewer spending options due to the impact of the pandemic (e.g. travel, restaurants, entertainment) and instead are saving money or moving forward with major expenditures such as new homes, home improvement and cars
This list can get very long, but, you get the idea - 2020 has been tough for many people and businesses. However, for others it was a banner year (I’m looking at you Amazon). But one thing that is consistent to all businesses is that adapting to change is required to either stop the bleeding and/or to capitalize on new opportunities.
Like with most things in life, change creates opportunity. The marketplace is now demanding brands to reinvent themselves. We want products and services that fill the needs of living in our new reality. Innovation and change can’t simply be generated top down. It needs to be a co-creation across the company’s entire eco-system. This would include management, staff, vendors, and suppliers, who need to collaborate in support of delivering what consumers are looking for.
As we enter 2021, I’m feeling optimistic that we will eventually get back to some version of normal. Meaning that masks won’t always be required and we can once again travel and go to restaurants, concerts, movies and sporting events. However, I’m also quite certain that we’ll encounter a number of bumps along the road and that there will likely be new and unforeseen challenges that will arise.
Successfully navigating through the heavy fog of change and uncertainty, will require a strong compass, experience, and a strong dose of empathy. Those companies that embrace business transformation will be best positioned to take advantage of new opportunities and position themselves for strong and sustainable future growth.