A flexible organisation, culture and workforce are vital to resilience in an unpredictable post-COVID world. To recruit and retain key talent, companies will have to offer the right working conditions and be more cognisant of personal circumstances.
of business leaders surveyed believed they were under pressure to improve their corporate cultures
The share price reduction as a result of a crisis relating to a company’s strategy is almost
than the loss in profit
COVID-19 has dramatically changed assumptions and norms about how organisations manage their workforces, along with the way they service customers. Unfortunately, many organisations were ill-prepared for upheaval on this scale. In FTI’s Resilience BarometerTM published in January 2020, we reported that only 24% of respondents were driving cultural change in their organisation to mitigate risk from crises – even though 94% of respondents felt under pressure to improve their corporate cultures.
Following the pandemic, the one certainty is that change can happen fast and unpredictably. To become more resilient organisations must be more proactive and introspective, having the courage to overhaul business models, technology and culture to navigate a new and volatile landscape. Unless a company remains relevant to its customers and its employees, both groups will look elsewhere.
Post-pandemic organisations need to be leaner, with products and services delivered through a more flexible and agile business model. This implies more flexible facilities, operating and resourcing models coupled with a workforce possessing diverse skills and capabilities.
Companies will need to invest in technology and infrastructure to adapt to a new physical working environment as social distancing and virtual working become common features. Accommodating these and other new ways of working will be essential to providing flexibility and for the retention of key staff and for maintaining competitiveness.
Shifting stakeholder attitudes will increase companies’ focus on ESG, sustainability and social justice agendas, and specifically on people-related issues such as health and safety. FTI Consulting research suggests this was already becoming a priority before the pandemic, ranking alongside climate change among the top ESG issues for investors according to Global Investor Insights 2020.
Alongside the chaos and disruption, COVID-19 presents companies with opportunities to reimagine their business models for the better, transforming the way they work with internal & external stakeholders and radically reducing costs that would have otherwise been fixed.