Summary

Big or small, new or established, companies of all types and stages must take steps to ensure survival and, ultimately, growth. Whether you hang on or thrive, will, to a significant extent, be based on the strategy that business takes to get through the short-term.

COVID-19 Pandemic Impact: The Need for Business Transformation

The COVID-19 pandemic has reshaped the global business landscape, compelling companies of all sizes and stages to adapt to survive and thrive. As a result, it is time to transform your business.  The strategies businesses adopt in the short term will significantly influence their long-term success.

“Coming together is a beginning; keeping together is progress; working together is success.”
– Henry Ford

A Time for Change: Rising from the Bottom

When circumstances are at their most challenging, opportunities for transformation emerge. Many businesses resist change during prosperous times, adhering to familiar systems, equipment, and processes under the philosophy of “if it isn’t broke, don’t fix it.” However, declining sales or profits often require a catalyst to spark innovation. The post-pandemic economy serves as a catalyst, prompting businesses to innovate to survive and ultimately thrive.

Proactive Innovation: Transforming Products, Services, and Business Models

The world is changing rapidly, with the pace and degree of change accelerating alongside uncertainty about the post-pandemic future. Businesses must proactively transform to remain viable. This process begins with an honest assessment of the current state of operations, involving engagement with customers, vendors, and employees, as well as analysis of local, regional, national, and global economic trends to identify new opportunities.

Redefining Business Opportunities

The viability of a company hinges on identifying the right problems to solve and the needs to fulfill. For example, during the pandemic, automakers pivoted to produce respirators and personal protective equipment, demonstrating the ability to adapt capabilities to meet new demands. Businesses must explore both short- and long-term pivots to generate revenue and ensure sustainability.

Leveraging Capabilities Born from the Pandemic

Innovation begins by rethinking a business’s core capabilities. For instance, an automaker might traditionally define itself by its product—cars—but a broader perspective reveals it as an innovative manufacturer of complex systems, including computers, IoT, smart technology, mechanical, electronic, green, and digital products. This shift in perspective opens up a wider range of opportunities.

Reframing Business Identity

Businesses should move beyond self-imposed restrictions on what they do, how they do it, and whom they serve. By focusing on capabilities rather than products, companies can explore new applications and markets, unlocking innovative potential.

Transform Through Processes, Systems, and People

To transform effectively, businesses must analyze their core competencies, including systems, processes, and people. Start by listing every person, piece of equipment, software, and procedure, and evaluate their potential contributions.

Reconfiguring for Innovation

Once individual elements are identified, explore how they can be reconfigured to offer new services or products. For example, shifting from inventory-based production to on-demand, small-run, specialized products can open new revenue streams. Collaborating with vendors or customers to leverage complementary capabilities can also help pursue new markets.

Addressing New Challenges

The pandemic has highlighted opportunities to innovate in business models, reduce costs, increase flexibility, and address emerging challenges. For instance, many companies have realized that remote work is viable, reducing the need for physical office spaces and business travel. This shift necessitates new approaches to motivating, supervising, and compensating remote workforces.

Moving Beyond Timeclocks: Rethinking Compensation

Traditional time-based compensation models, rooted in the Industrial Revolution, are becoming outdated. A results-based compensation model aligns more closely with modern business needs. For example, when commissioning a website with specific performance, functionality, and quality requirements, the time taken to complete it is less relevant than meeting the deadline and adhering to the standards. Paying a fixed amount for the deliverable, rather than by the hour, incentivizes efficiency and clarity in meeting requirements.

A Case Study in Focus: Results Over Time

In the automotive industry, a production team working under a union contract demonstrated the power of focusing on outcomes. By prioritizing production targets over hourly rates, the team often completed the output of a 12-hour shift in under 8 hours, using the remaining time for team-building activities. However, when a manager emphasized hours over output, the team adhered strictly to hourly production rates, resulting in significant disruptions. This underscores the value of focusing on results rather than time.

Focusing on Outcomes and Results

Managing time is a convenient but limiting approach. A focus on outcomes rewards efficiency and encourages innovation. In corporate settings, the concept of “face time”—hours spent visibly in the office—often overshadows actual productivity. The pandemic has challenged such outdated practices, proving that productivity can thrive outside traditional office settings.

Aligning Work with Customer Needs

Adapting work schedules to align with customer needs, rather than adhering to rigid office hours, can enhance productivity. The pandemic has demonstrated that flexibility in how and where work is conducted can lead to improved outcomes.

Challenging Assumptions and Embracing New Approaches

The pandemic presents a unique opportunity to challenge assumptions and explore new ways to leverage business assets. By rethinking capabilities, businesses may discover new niches, customers, and revenue streams, potentially making them more profitable than ever before.

Seizing the Moment

Now is the time to adopt a new perspective, innovate, and transform. By focusing on capabilities, outcomes, and proactive adaptation, businesses can navigate the challenges of the post-pandemic era and emerge stronger.