The Covid-19 crisis has changed familiar models, making budgetary approaches and individual annual targets obsolete. The race for performance has begun, and organizations need to get off to the right start, on the right high-speed train. The crisis is affecting sectors and companies differently, but there are still undeniable opportunities. We are also experiencing a digital transformation that was supposed to take 2 years to …. 2 months ! Covid-19 is therefore pushing us towards new perspectives and enabling us to unlock major strategic transformations.
The gap between the profitability of the best and weakest companies is widening. The biggest companies are proving to be the most resilient, while the weakest are being hardest hit by the crisis. Clearly, those that were suffering before are suffering even more now, while the best performers have increased their profitability. Only those businesses that are anchored in the future are better prepared to face the current economic climate.
However, let’s put things into perspective: the situation is not only due to Covid-19. Internet ordering, telemedicine, e-education, distance working… all of this is already well known, but the use of these media has been greatly amplified. The importance of adapting and accelerating all strategic decisions is therefore fundamental to keeping pace with, and even anticipating, the acceleration linked to the coronavirus. Egos, divergent interests and cognitive prejudices sometimes prevent organizations from moving quickly and in battle order.
Military-style command models are now, more than ever, obsolete in business. Organizations need to have common objectives and a corresponding strategy that can (and must) be adapted to the different situations specific to each sector and industry.
So what can we do??? #NousPouvonsVousAider. The graphs below give an overview of the gaps between the “Top performers” and the rest of the world. Here are our recommendations:
Top quintile: Use momentum to accentuate leadership
Median: Free up resources to be reallocated to growth, for example, by taking advantage of new trends. Don’t get “stuck” and use Strategic Cost Management,
Bottom quintile: Avoid losing further ground. Change strategy, rethink the cost structure, rapidly initiate Strategic Cost Management and reallocate cash and resources.
Our expertise in Strategic Cost Management will give you access to resources you never imagined existed. Double-digit reductions in cost categories will surprise you…
