Core Executive roles of a company in a Covid 19/ Post Covid 19 environment.

 

What do you think are the core executive roles of a company during a crisis?

The World Economic Forum (2020), stated that the Pandemic is fast-tracking major shifts in the direction of further integrated methods for corporate governance. This has built up momentum for a period of time. Covid 19 has uprooted communities, sources of revenue and organizations within every sector on a global scale.  Covid 19 deeply highlighted the need for organizations to communicate actively with all of their stakeholders both internally and externally to communicate the plan for business going forward. Additionally, organizations themselves have become stakeholders, with their own environment. They are completely responsible for how they prove flexible and their capacity to withstand the present financial, societal and environmental state during this Pandemic.

Leaders and executives need to adjust their strategies, predominantly investment portfolios. The economic environment and the volatility of markets need to be strongly considered with significant drivers towards value adding activities in the ongoing future. Whilst organizations acclimatize to changed financial frameworks, remote working arrangements and higher expectations subsequent to this global pandemic, together with constant environmental limitations and an increased interest in digital transformation, organizations need to strengthen their attention towards value adding initiatives. These consist of innovation, mental and physical health, talent acquisition, organizational culture and firming up stakeholder relationships.

Do you think new strategies are needed? And if yes, any suggestions?

Paine (2020) stated that executives are now confronted with multifaceted realities resulting form the Pandemic. This different environment is branded with challenges and difficulties from numerous stakeholders, increased opportunities for social engagement and corporate citizenship. Executives are being affected by these difficulties.  Which pose new and unchartered territory as new ways of working have been exponentially increased.  Executives are required to think outside the box and systematically develop ways regarding significant challenges to organizations and a path forward beyond the pandemic.

Mc Kinsey and Company (2021) referenced the Pandemic, saying at this time, everyone plays a vital role within the organization. It is mentioned that upskilling will become a norm, Bank tellers becoming financial advisors, younger managers leading large projects and organizations interested in persons who are very tech savvy.

Harvard Kennedy School (2020) has reported that this pandemic is showing us that stakeholders are vital to the organization’s success.

With remote working what do you believe will become of all the physical office spaces once occupied?

Mc Kinsey and Company (2021) conducted a survey which indicates executives’ plans to reconfigure spaces, terminate existing leases and shift towards less and more affordable locations.

It can be said that distant working from homes and makeshift offices increases cyber security risks. Technology information and information security personnel are wrestling with an obvious demand for hardware and other infrastructure to be able to work at home. This is inclusive of firewalls and different measures of security software.

EY (2020) stated that organizations need to consider creating pandemic related policies, procedures  for communication, telecommuting and leave administration to curtail disruptions.

Innovation is crucial to resolving many problems which executives may now face.  Business is now evolving and there is a need for new technology, new behaviors upskilling and a measure of unlearning and learning.

As lockdowns lessen and sections of the economy revive, we are seeing that the threat of second and third waves and new virus strains and unexpected outcomes will hamper growth and cause investors and businesses to be very frugal. Economic downturns, business closures and increase in unemployment may be on the rise with an end not in clear sight.

Panetta (2020) indicated that Executives need to consider three different principles for decisions going forward:

- Traditional business value: which will assist in preserving financial health and viability of the business. 

- Crisis and disruption: To manage the aspect of health and safety of stakeholders 

- Social and emotional: This enables protection of emotional health and deliver value which reflects current societal priorities

Executives need to think of these three principles as equally significant. Organizations need maintain financial health to be able to provide any social benefits to the community. However, they need to ensure not only to focus exclusively on financial health as they may risk paying a high brand price later on. IBM (2020)

IBM Institute for Business Value has shown that executives are now prioritizing these capabilities. This signals a massive shift in prioritization. Executives are clearly telling us they plan to emphasize workforce safety and security, cost management, and enterprise agility. IBM (2020)

PWC (2020) wrote that the pandemic did fast-track the requirement for upskilling within the workplace. Also, it created the new wave of work from home. In May 2020, a survey conducted did show work from home may be a permanent option with organizations as strategies become geared towards digital transformation.  Executives and CFOs are optimistic that digital transformation will be the way post pandemic.

However, this will increase the gap between individuals who may have challenges with cost to access technology, technologically savvy or experienced persons and the ability to work digitally. This creates a bigger divide between those who have and those who don’t. Employees will be afforded the advantage of upskilling and progressing their skill level, having a noteworthy lead over those without this opportunity. Executive will need to approve the development of learning programs to enable this upskilling and retraining to permit this organizational shift. Support needs to be transparent from the head of the organization to enable the changes and foster this learning environment.

OECD (2020) has specified that the pandemic has uncovered the weaknesses of persons, communities and economies. This is requiring, change in how financial and community events are planned.

 Existing ways of how we share information during the pandemic is critical to preserving trust amongst stakeholders, reestablishing drive and assurance, and maintain firmness within the economic market. Whereas some organizations may use specific strategies to share information and have selected persons to route communication through, this sometimes results in delayed communication or inaccuracies.  In the present business environment and with the magnitude of information shared in the world, it is essential for business to be timely and accurate with sharing information. Communication and an alignment via all channels should be created and maintained.  (e.g., social account for the business, company website and public relations announcements).

A global event like Covid 19 can increase difficulty owing to the dissemination of incorrect information and stories on social sites. To deliver consistent and appropriate business information and communication, businesses need to create a strategy that plainly shows the required method and procedure to communicate with stakeholders.

Groysberg and Baden (2020) mentioned in detail that one particular issue mentioned by many executives was the challenge of positioning the business to survive during the Covid 19 crisis and preparing for the new way of working that comes after.

Executives can ask themselves at this time-

How can the organization survive this pandemic and maintain competitive advantage?

What learnings can the organization take from this experience?

It can be said from one point of view that fairness within the organization is vital. At this time it is vital for organizations to observe and actively apply learnings as the world changes requires more focus on health, environmental and community in addition to financial targets.

References: 

1. Groysberg, B. and Baden, K. C. (2020) The COVID Two-Step for Leaders: Protect and Pivot. Available at https://hbswk.hbs.edu/item/the-covid-two-step-for-leaders-protect-and-pivot (Accessed: 18 January 2021)

2. EY (2020) COVID-19 and pandemic planning: How companies should respond. Available at https://www.ey.com/en_in/covid-19/covid-19-and-pandemic-planning--how-companies-should-respond (Accessed: 18 January 2021)

3. Harvard Kennedy School (2020) How COVID-19 has changed public policy. Available at https://www.hks.harvard.edu/faculty-research/policy-topics/public-leadership-management/how-covid-19-has-changed-public-policy (Accessed: 18 January 2021)

4. IBM Institute for Business Value (2020) COVID-19 and the future of business. Available at https://www.ibm.com/thought-leadership/institute-business-value/report/covid-19-future-business (Accessed: 18 January 2021)

5. Panetta, K. (2020) A Framework for Executive Decision Making During COVID-19. Available at https://www.gartner.com/smarterwithgartner/a-framework-for-executive-decision-making-during-covid-19/ (Accessed: 18 January 2021)

6. Paine, L. S. (2020) Harvard Business review, Covid-19 Is Rewriting the Rules of Corporate Governance. Available at https://hbr.org/2020/10/covid-19-is-rewriting-the-rules-of-corporate-governance (Accessed: 18 January 2021)

7. Mc Kinsey and Company (2021) COVID-19: Implications for business. Available at https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business (Accessed: 18 January 2021)

8. Mc Kinsey and Company (2020) Coronavirus: 15 emerging themes for boards and executive teams. Available at https://www.mckinsey.com/business-functions/risk/our-insights/coronavirus-15-emerging-themes-for-boards-and-executive-teams (Accessed: 18 January 2021)

9. Organisation for Economic Co-operation and Development (2020) Social economy and the COVID-19 crisis: current and future roles. Available at http://www.oecd.org/coronavirus/policy-responses/social-economy-and-the-covid-19-crisis-current-and-future-roles-f904b89f/ (Accessed: 18 January 2021)

10. PWC (2020) COVID-19 Collaboration Series - How business-led upskilling can reboot Australia. Available at https://www.pwc.com.au/about-us/insights/non-executive-directors/business-led-upskilling.html (Accessed: 18 January 2021)

11. World Economic Forum (2020) Integrated corporate governance: 6 leadership priorities for boards after the COVID-19 crisis. Available at https://www.weforum.org/agenda/2020/06/integrated-corporate-governance-6-leadership-priorities-for-corporate-boards-after-the-covid-19-crisis (Accessed: 18 January 2021)