How to Lead in the New Reality
To navigate the coronavirus pandemic, business leaders must address the immediate crisis while simultaneously preparing for a transformed future. There will be no return to normal.
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From Reaction to Reimagination
The pandemic represents a fundamental discontinuity. And yet, a BCG Henderson Institute survey of more than 300 companies shows that most have taken action to keep employees safe and to respond to the economic shock, but few are thinking ahead to the long-term impacts on their business.
The coronavirus crisis has both accelerated existing trends and posed fundamentally new challenges. For business leaders, five imperatives are key.
Embrace the New Reality
The coronavirus crisis has stretched business leaders to the limit. Here are eight ways that they can embrace the new reality and transform business and society.
How the world will look after the coronavirus pandemic is, in large part, up to leaders. Even as they attend to the immediate challenges of the crisis, they can do more than merely react to disruptive change. They can shape our new reality.
RESPOND TO THE PANDEMIC ON
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Reaction
Recession
Rebound
Reimagination
Reaction
Recession
Rebound
Reimagination
Establish a digital hub to disseminate information
Develop flexible working plans and provided the required infrastructure
Most companies have taken multiple measures to protect the health and safety of employees and ensure business continuity
81
10
9
3
11
86
Reaction
Recession
Rebound
Reimagination
A majority of companies have taken measures to weather a likely recession
Conduct scenario analysis to assess liquidity
61
31
8
Implement a cost discipline plan
5
36
59
Fewer than half have taken measures to prepare for a potential rebound of demand
Conduct a top-down scenario assessment of demand rebound
43
40
17
Develop a plan to ready the supply chain for a potential rebound
28
47
25
Although some companies are planning to take action, they have yet to restructure their business for a postpandemic world
Restructure the supply chain
0
30
70
Modify the
sales-channel mix
73
27
0
Five Critical Imperatives
1
Restart the economy—safely
1
Restart the economy—safely
1
Restart the economy—safely
The health and wellbeing of employees, customers, and suppliers comes first. Adopt detailed plans to minimize health risks. Address employee concerns about safety and uncertainty clearly and directly.
LEARN HOW TO RESTART WORK SAFELY AND UNDER CONTROL
COMBAT COVID-19
WIN THE NEW CUSTOMER
accelerate digital
transform to thrive
shape the future
Businesses are on the front line of the fight and must play a leadership role in society’s efforts to defeat the coronavirus and restart the economy.
COMBAT COVID-19
Companies that have taken action (%)
Companies that plan to take action (%)
Companies that have not planned to take action (%)
Like other disruptive historical events, the pandemic will lead to long-term shifts in attitudes, behaviors, and patterns of demand.
The pandemic has pushed employees and customers online at an unprecedented pace, creating an urgent imperative for rapid digital transformation.
The shock of the pandemic has disrupted operations across the organization, giving companies an opportunity to take a fresh look at every aspect of
the business.
The pandemic has renewed emphasis on how organizations act within society, making nonmarket factors an increasingly important dimension of strategy.
WIN THE NEW CUSTOMER
accelerate digital
transform to thrive
shape the future
A Host of Complex Challenges
BCG senior leaders Mai-Britt Poulsen, Sharon Marcil, and Carol Liao explore the latest challenges that companies around the world are facing in our weekly LinkedIn video series:
Leading in the New Reality Live
Leading in
the New
Reality
MAI-BRITT POULSEN
Managing Director & Senior Partner Chief of Staff
sharon marcil
Managing Director & Senior Partner Chief Marketing Officer,
Chair of BCG FED
Carol liao
Managing Director & Senior Partner Chair of Greater China
Get the latest updates on leading in the new reality
EXPLORE
EXPLORE
Introducing Lighthouse by BCG—decision-support during COVID-19
LEARN MORE
LEARN MORE
Explore more topics in the How to by BCG series
How to Protect Your Workforce During the COVID-19 Pandemic
How to Future-Proof Your Workforce
How to Cultivate a Corporate Strategy to Serve All Stakeholders
How to Change the Course on Climate
How to Protect Your Workforce During the COVID-19 Pandemic
How to Future-Proof Your Workforce
How to Cultivate a Corporate Strategy to Serve All Stakeholders
How to Change the Course on Climate
2
Make remote work work
3
Seek out fresh signals
4
Start a new consumer conversation
5
Redesign data and digital platforms
6
Reinvent the operational model
7
Articulate a purpose beyond profit
8
Create total
societal impact
2
Make remote work work
3
Seek out fresh signals
4
Start a new consumer conversation
5
Redesign data and digital platforms
6
Reinvent the operational model
7
Articulate a purpose beyond profit
8
Create total
societal impact
EXPLORE THE FUTURE OF REMOTE WORK
2
Make remote work work
The pandemic has been the catalyst for an extraordinary live experiment in remote work. Codify emerging best practices and use them to reset how you organize work.
EXPLORE THE FUTURE OF REMOTE WORK
LEARN HOW TO RESTART WORK SAFELY AND UNDER CONTROL
DISCOVER HOW CEOS ARE FINDING THE SIGNALS THAT MATTER MOST
Seek out fresh signals
Economic volatility and uncertainty are undermining the usefulness of traditional quarterly metrics. Look to new sources of high-frequency data for signs of employee health, business activity, and future trends.
3
DISCOVER HOW CEOS ARE FINDING THE SIGNALS THAT MATTER MOST
LEARN HOW JUST-IN-TIME PERSONALIZATION CAN HELP IN THE CRISIS
4
Start a new consumer conversation
Use AI-based machine learning to track and respond to sudden shifts in consumer preferences, increase personalization, and build customer trust.
LEARN HOW JUST-IN-TIME PERSONALIZATION CAN HELP IN THE CRISIS
EXPLORE WHY DIGITAL ACCELERATION REQUIRES A NEW APPROACH TO TECH
5
Redesign data and digital platforms
Focus digital transformation on delivering business value before replacing core IT systems. Recombine human and technological capabilities to create a truly bionic company.
EXPLORE WHY DIGITAL ACCELERATION REQUIRES A NEW APPROACH TO TECH
DISCOVER CROSS-FUNCTIONAL STRATEGIES TO REBOUND FROM THE CRISIS
6
Reinvent the operational model
Rebuild functions and supply chains to emphasize agility, responsiveness, and resilience.
DISCOVER CROSS-FUNCTIONAL STRATEGIES TO REBOUND FROM THE CRISIS
LEARN HOW TO HARNESS THE POWER OF PURPOSE
7
Articulate a purpose beyond profit
The human loss from the pandemic has focused people on what really matters and what really counts. Anchor the organization’s day-to-day activities to a higher goal. Use purpose to move people beyond grief to action.
LEARN HOW TO HARNESS THE POWER OF PURPOSE
EXPLORE HOW TO AVOID MAKING CLIMATE THE NEXT VICTIM OF THE PANDEMIC
8
Create total societal impact
Increasingly, the world is facing big problems that no single sector can solve on its own. Mobilize with government and the non-profit sector to address global challenges, such as climate change, sustainability, and social justice.
EXPLORE HOW TO AVOID MAKING CLIMATE THE NEXT VICTIM OF THE PANDEMIC
Download the eight steps
RESPOND TO THE PANDEMIC ON
MULTIPLE TIMESCALES
