Focus on recovery in a world of disruption

In a Presidential Address on 4 April, President Cyril Ramaphosa cancelled the National State of Disaster after instituting it 750 days ago on 24 March 2020.

This effectively ends what has been one of the most focused global responses to the Covid-19 Pandemic. Most of the restrictions that companies faced during the Pandemic have now been cancelled and companies can start looking towards corporate recovery to return their companies towards a profitable core.

This is being done in a completely new world where the rules of engagement have changed significantly. Companies have learned many lessons during the Pandemic and are currently dealing with external risk factors which threaten to push even the most well-run companies towards financial distress.

What should companies focus on during their corporate recovery? I recently read an article by Gartner regarding the future of work which should pose a few interesting questions to BRPs and Turnaround Professionals who are looking to expand their restricting toolkit and the future advise that they offer clients.

Increase in remote working 
A recent Gartner poll showed that 48% of employees will likely work remotely at least part of the time after Covid-19 versus 30% before the pandemic.

The article points out that, as organizations shift to more remote work operations, explore the critical competencies employees will need to collaborate digitally, and be prepared to adjust employee experience strategies. Consider whether and how to shift performance goal-setting and employee evaluations for a remote context.

Expanded data collection
Gartner analysis shows that 16% of employers are using technologies more frequently to monitor their employees through methods such as virtual clocking in and out, tracking work computer usage, and monitoring employee emails or internal communications/chat. While some companies track productivity, others monitor employee engagement and well-being to better understand employee experience.

The article adds that even before the pandemic, organizations were increasingly using non traditional employee monitoring tools, but that HR trend will be accelerated by new monitoring of remote workers and the collection of employee health and safety data. Make sure to follow best practices to ensure responsible use of employee information and analytics. 

Separation of critical skills and roles
Before Covid-19, critical roles were viewed as roles with critical skills, or the capabilities an organization needed to meet its strategic goals. Now, employers are realizing that there is another category of critical roles — roles that are critical to the success of essential workflows.

To build the workforce you’ll need post-pandemic, focus less on roles than on the skills needed to drive the organization’s competitive advantage and the workflows that fuel that advantage. Encourage employees to develop critical skills that potentially open up multiple opportunities for their career development, rather than preparing for a specific next role. Offer greater career development support to employees in critical roles who lack critical skills.

This can include:

•  brainstorming on the development of a cash management system that will help a company manage cash flow in times of crisis;
• Identifying opportunities to address the impact that the current global supply chain crisis has on the company; and
• the development of operating models that will help the company take advantage of the gig economy.  

Emergence of new top-tier employers
The article points out that, prior to Covid-19, organizations were already facing increased employee demands for transparency. Employees and prospective candidates will judge organizations by the way in which they treated employees during the pandemic. Balance the decisions made today to resolve immediate concerns during the pandemic with the long-term impact on the employment brand.

For example, advise CEOs and executive leaders on decisions regarding executive pay cuts and make sure financial impacts are absorbed by executives versus the broader employee base.

The article adds that progressive organizations communicate openly and frequently to show how they are supporting employees despite the implementation of cost-saving measures. Where feasible, look for opportunities to arrange talent-sharing partnerships with other organizations to relocate employees displaced from their jobs by Covid-19.

Transition from designing for efficiency to designing for resilience
A 2019 Gartner organization design survey found that 55% of organizational redesigns were focused on streamlining roles, supply chains and workflows to increase efficiency. While this approach captured efficiencies, it also created fragilities, as systems have no flexibility to respond to disruptions. Resilient organizations were better able to respond — correct course quickly with change.

To build a more responsive organization, design roles and structures around outcomes to increase agility and flexibility and formalize how processes can flex. Also, provide employees with varied, adaptive and flexible roles so they acquire cross-functional knowledge and training.

“Diversity leaders will need to be involved in role design and creation of flexible work systems to ensure that employees of all backgrounds and needs are considered when the organization designs new workflows,” said Ingrid Laman, Vice President, Advisory, Gartner.

Increase in organization complexity
After the global financial crisis, global M&A activity accelerated, and many companies were nationalized to avoid failure.

The Gartner article points out that, as the pandemic subsides, there will be a similar acceleration of M&A and nationalization of companies. Companies will focus on expanding their geographic diversification and investment in secondary markets to mitigate and manage risk in times of disruption. This rise in complexity of size and organizational management will create challenges for leaders as operating models evolve.

The article adds that companies should enable business units to customize performance management, because what one part of the enterprise needs might not work elsewhere. As organizational complexity complicates career pathing, providing reskilling and career development support — for example, by developing resources and building out platforms to provide visibility into internal positions.

Significant investment
One of the trends not discussed in this article is the role that technology will play in a connected future.

Companies need to enhance the client experience in order to increase profitability. The easiest way to do this is through technology which bridges the gap between customer touchpoints that companies are struggling to find with customers of the future.

This will demand significant attention and capital in order to maximise this in the most efficient manner. While is puts immediate pressure on companies who are financially stretched. There are longer term benefits which will eventually increase the company’s profitability.

Moses Singo is a Partner at Genesis Corporate Solutions and is a Junior Business Rescue Practitioner.