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“It’s not going away, and now we have to face that actuality.” That’s what the CEO and founding father of a high-tech manufacturing startup with 180 staff informed his management staff in early July to persuade them they wanted a strategic pivot to handle COVID-19.
Beforehand, the startup’s executives took issues one step at a time, placing out the varied COVID-related fires that flared up: provide chain disruptions, canceled orders, staff having difficulties with work-from-home setups or needing flex-time to handle children or aged family.
Seeing extra of the broad image, the CEO realized the corporate was going within the incorrect route. One of many board members really useful my recently-published e-book on strategic pivoting to adapt to COVID and plan for the post-pandemic restoration.
After a fast learn, the CEO satisfied the opposite management staff that the corporate wanted to do a strategic pivot to handle COVID. He had his government assistant contact me and organize for a facilitated strategic retreat devoted to addressing the pandemic, which grew to become my sixth of 9 such engagements so far. This text summarizes my experiences serving to a spread of corporations — 5 startups, three established middle-markets and a enterprise unit of a Fortune 300 firm — pivot for our new irregular actuality.
Difficult enterprise mannequin assumptions
Invariably, step one is reassessing assumptions concerning the group’s enterprise mannequin. Which means preliminary temporary conferences with the management staff the place we focus on the type of fires they’re dealing with.
For instance, the manufacturing startup confronted a brand new problem in promoting its high-tech merchandise. Identified for its superior high quality, the merchandise had been flying off the shelf beforehand; the corporate really had bother maintaining with demand.
Now, the startup’s salespeople reported that the decision-making course of modified. Accounting put far more stress on operations managers to show that the standard of the merchandise introduced ample ROI. Couldn’t they get by with lower-cost choices?
Whereas the startup invested in innovation to make sure the standard of its high-tech merchandise, it didn’t have a transparent measurement of ROI for the innovation. In spite of everything, operations folks centered on high quality, not ROI. Consequently, a few of its clients, with apologies, selected to purchase lower-cost alternate options.
Different corporations confronted a spread of comparable issues, in gross sales and different areas. Typically, the information got here as a shock to different members of the management staff, even the CEO; all had been busy combating fires in their very own areas.
Gathering inner data
With extra consciousness of the enterprise mannequin assumptions challenged by the pandemic, the subsequent step includes gathering inner data for a revised technique and enterprise mannequin.
These who lead a division and are current on the strategic retreat collect suggestions from their direct experiences on how one can revise every division’s objectives, construction and relationship to clients (exterior or inner) in mild of the challenged assumptions in both of three situations.
- Within the first situation, a vaccine with over 90 % effectiveness can be discovered by spring 2021, and the pandemic largely over by spring 2022
- Within the second, this vaccine can be found by spring 2022, and the pandemic largely over by spring 2023
- Within the third, we might by no means discover a vaccine more practical than 50 %, identical to we haven’t discovered a vaccine more practical than that for the flu
Up subsequent is the strategic retreat. It ought to be a two-day occasion, with sooner or later for broad strategic planning and one other for operationalizing the technique.
The high-tech manufacturing startup’s staff struggled extensively with accepting the fact of adjusting market calls for. Its operations staff established a way of id and staff spirit round innovation as a core worth. Its advertising and gross sales made innovation a elementary ingredient of their pitches. They saved veering away from the fact that they wanted to shift from innovation to ROI measurement.
The CEO and I saved steering them again. I had to make use of the total vary of my facilitation abilities to maintain the dialog heading in the right direction, an particularly difficult activity because it was a digital retreat.
The management staff of a late-stage SaaS startup with greater than 500 staff was shocked that the big majority of their direct experiences shared emotions of work-from-home burnout and “Zoom fatigue.” On this space, as an knowledgeable in emotional and social intelligence, I may present substantial assist.
It’s key to understand that these points stemmed not merely from burnout. It goes a lot deeper.
- Pandemic-related psychological well being challenges equivalent to nervousness/melancholy/trauma/grief
- COVID-related pragmatic challenges, equivalent to children staying house
- Social isolation from mates, household, and neighborhood occasions, in addition to our earlier outdoors hobbies and leisure
- Poor work-from-home environments with insufficient house workplace setups
- Lack of abilities in efficient digital communication and collaboration
- Being disadvantaged of the success of these primary human wants — sense of connection, tribe, which means and objective — that we naturally get from work
To deal with this requires not solely monetary assist for house workplace setups or flex time to handle pragmatic pandemic challenges; it additionally requires skilled improvement in efficient digital communication and teamwork. Furthermore, it requires skilled improvement in emotional and social intelligence, to allow staff to acknowledge and tackle the emotional and social gaps left by the pandemic.
The following day ought to be centered on operationalizing the strategic modifications within the enterprise mannequin. You’ll want to tackle potential threats and alternatives in a wide range of future situations and revise yesterday’s technique if wanted. These situations want to incorporate a minimum of the three totally different COVID futures described above and several other totally different potential financial restoration situations (Ok, U, W, V, L).
An enterprise information analytics startup with over 120 employees acknowledged an surprising alternative. It had lengthy been attempting to get some profitable consumer accounts held by a number of rivals. The startup’s CEO knew that a lot of the rivals’ leaders had a dismissive perspective towards COVID.
The startup determined to regulate its advertising and gross sales to display the steps it was taking to pandemic-proof. Salespeople referred to as on the rivals’ consumer accounts and informed them about these steps and supplied to supply assist if the pandemic lasted longer than probably the most optimistic predictions and the rivals couldn’t uphold their earlier excessive requirements.
Subsequent steps and follow-up
On the conclusion of the operations day, decide particular subsequent steps for every new initiative that you just mentioned. Determine on approximate sources required and metrics of success. Select one member of the management staff accountable for implementing the initiative, with others doubtlessly concerned within the effort. Lastly, put together a report for the board of administrators on the retreat, highlighting how the strategic pivot will assist the corporate adapt to numerous situations of COVID and the financial restoration.
Comply with up on all the subsequent steps within the weekly management staff assembly or no matter different management staff discussion board your organization already makes use of. Then, in a month, have a half-day occasion the place you assess the technique shift and make any corrections to technique and/or implementation as wanted. Do the identical in three months.
Whereas nothing can assure success, I can assure that taking these steps will maximize your possibilities of not solely surviving however thriving in these troubled instances.