Management Perspectives

Although we are approaching the proverbial ‘light at the end of the tunnel’ of a very long tunnel, the world economies are still months, if not years, away from pre Covid-19 levels. Most businesses, the world over, have had to adjust to significantly lower revenue levels, depleted capital structures, adopt new approaches to obtaining and serving customers and reduced employee levels due to Covid-19 quarantine mandates. While some Covid-19 focused businesses such as Amazon, Alibaba, and Zoom have thrived, most middle-market businesses have not, and as we emerge from the ‘tunnel’, middle-market business leaders need to prepare for growth and resilience in 2021.

Most of us have a good idea of the definition of growth, but resilience is a relatively new addition to the business vocabulary. So, here is a good definition to start: Resilience is the ability to protect and grow value in the face of rapidly changing external conditions.

To build and maintain resiliency in your business, you will want to minimise the downside while maintaining the ability to act on opportunities. Resilience involves financial, operational, strategic, and psychological elements. To build and maintain resiliency in your business, focus on four tools that will be key to your success:
1. Culture,
2. Leadership,
3. Change, and
4. Discipline.

As you refine your culture and adapt your leadership for 2021, make sure you clearly identify the vision you have. Know where you want to be at the end of 2021. Identify the milestones and metrics that will tell you that you have achieved growth and resilience. This is not an easy task. Be specific and set challenging but attainable goals.

Culture is the personality of your organisation
Culture is the sum of all the beliefs and behaviours—at every level of the organisation— that shape your company’s strategy and actions. Your company has a culture or personality and it can be a help or a hindrance to your success. Start by revisiting the pillars of your culture – Mission, Values, and Vision. Here are a few insights as you do this:
- Validate or revise these three pillars based on the impact of Covid-19 to your business;
- Make sure you have buy-in across the entire organisation, clear two-way communication and the agreed upon accountability;
- Create deep connections for all employees by identifying specific ways they can contribute to achieving your Mission and Vision;
- Next make sure your culture and your strategy are aligned. A top-down culture is not likely to support a strategy that relies on creativity and innovation.

Things you can do to align culture and strategy include:
- Deliberately weave your discussion of your Mission, Values, and Vision into your planning process, operations, and business development; as a leader you should consistently walk the talk;
- Be sure to protect and support the cultural elements that propel your company to success and be quick to change or eliminate the parts that are impediments.

Leadership matters
Culture and leadership are inextricably bound together, so pay close attention to leadership at all levels of the organisation. Culture is affected by line managers as much as executives. Like 2020, 2021 is likely to present plenty of uncertainty, so as you focus on leadership, keep these insights in mind:
- First, be nimble and attuned to the situation, change, and uncertainty that will still be with us;
- Next be aware of the special needs of your employees created by Covid-19 and the related economic circumstances. Develop and incorporate a strong sense of caring and commitment to employee well-being. In most cases, your employees have been through a lot over the past year. Recognise that they might have lost family members, suffered severe economic problems and/or are facing emotional detachment issues from family and friends. You cannot have a successful business if your employees are not supported or do not trust you.
- Finally, make leadership a deliberate part of your 2021 plan and metrics; leadership matters.

Change is never easy
Determine what change is needed and how fast you want to accomplish ‘change’. As an example, physical-based retailers with store locations have had to very quickly adopt internet retailing, new efficiencies in goods delivery, and new approaches to customer acquisition in order to survive the drop in person shopping. Many retailers who could not change fast enough have filed bankruptcy. The level of change needed and speed to change are the first elements of change. Once you have defined your current state and where you want to be you can begin to map the change process.

There are lots of different change techniques and methodologies, but the best change programs involve the following four elements.

Analytical: Know the key levers available to effect the change you want.

Logical: Map out a clear and understandable plan; you want logical milestones and meaningful metrics. Remember you have to communicate this plan, get buy-in all across the organisation, and have clear accountability.

Right people: In the end, it is your people who will execute the plan, so get the right people in the right places; here you may want to make selections based on mindset as much as skills or capabilities.

Team support: Once the team is in place, they need support; this may be in the form of resources or recognition or guidance; your job as leader is to know what support is needed, where, and when; and do not forget to celebrate the successes

Discipline—a relentless focus on execution
Discipline has two primary facets: a relentless focus and pursuit of your goals. But it also has also an unwavering attention to the tools, processes, and financial resources that protect your business from the downside.

Remember the world is still a very uncertain place, so you need to be prepared to succeed whether the wind is blowing from behind you or in your face. Use the four tools of Culture, Leadership, Change, and Discipline to map your way to growth and resilience in 2021.