The former President of the United States of America, John F. Kennedy, had already summed it up in a quote: "The word crisis in Chinese is made up of 2 characters - one means danger and the other means opportunity".
What is more important in Corona, the danger or the opportunity?
Economic progress during and after the Corona crisis is a balancing act between the well-known and the tried and tested and what may be new (or added) in the future. Perspectives, visions and strategies for what comes after. But how can change work during the crisis? Old structures are often very manifest and people stick to them for a long time, although changes would be absolutely necessary.
Numerous companies are currently changing their product range or setting up new business models in order to survive the crisis. But what comes after that? Will car manufacturers still produce ventilators then? Or hotel chains act as hospitals? Probably not.
So how does change happen in this crisis or after the quote from John F. Kennedy:
Where is the opportunity in the Corona crisis?
In order to survive, short-term business models are established. But this should only be temporary and should not be misunderstood as being the future vision for the company. How can a company survive in the long term? What options do the given options allow? The world is currently changing dramatically, so it is not enough to just make short-term adjustments to existing business models. Companies that withdraw now and concentrate exclusively on their continued existence during the exceptional situation can survive in the long term, but they do not necessarily emerge stronger. Passivity is a danger: those who do not seize opportunities may leave the current phase battered and weakened. Companies and competitors who see the current situation as an opportunity and want to remain successful not only during but also after the crisis can benefit from this.
future models
In addition to a real inventory, hypothetical assumptions also help to find a direction. What does the company's infrastructure look like? What possibilities do the given production facilities offer? What skills do your own employees have to act in new directions? How is the cost management in larger areas: Can existing production areas be merged in order to establish new ones in other areas? Are service areas possibly obsolete, but other service areas are completely underserved? Difficult decisions can and may need to be made right now. Survival does not just mean setting the horizon for a period of six to twelve months, but also including medium and long-term perspectives in the current decisions beyond the annual planning.
Conclusion
Taking stock of the here and now is essential to ensure the continued existence of the company. However, the look ahead should also be adjusted and the opportunities arising from the crisis should be seized. Nobody can predict exactly what will come after the pandemic, but what is certain is that economic and social life will continue - albeit perhaps differently than before the crisis.
From Martin Krill, managing partner of HAGER Executive Consulting
