6 minute read
The BIG Question.
The pandemic has disrupted businesses around the world. Faced with such an unprecedented shock, how can businesses transform and thrive?
The Big Question sheds light on a topical issue of global relevance, providing a platform for some of Bond’s best and brightest academics and alumni to share their unique perspectives.
Fiamma Fay Morton (Class of 1992) is Group Executive Business, Bank of Queensland.
The pandemic has had an impact on every single person around the globe.
That statement in itself is overwhelming when said out loud. Every single one of our 7.8 billion citizens.
In Australia, we have adapted how we consume, shop, bank, feed ourselves, entertain, exercise, work and educate. These rapid changes in our behaviours have had a massive effect on businesses - some positive, some disastrous.
Phase 1 was the immediate response to the sudden evaporation of turnover (except if you were a toilet paper manufacturer!); Phase 2 is seeing companies pivot and adapt to the new normal; and Phase 3 the pursuit and implementation of structural changes that position businesses for success in a new “postcrisis” world.
There have been a number of businesses that have shown remarkable resilience to date.
The trick for success is responsiveness to changing customer needs. For some, the change in business model was swift. The cafes that set up sidewalk grocery stores and online orders is an example of a pivot. As has been the gin distilleries who took on making hand sanitiser. I was so energised in those early days by Australia’s entrepreneurial spirit (as well as government support) that saw our business community adapt.
One of my customers told me of how their business had completely shut. Boom to zero overnight. But JobKeeper allowed him to keep on staff to prototype a new product line they had been wanting to develop. Another used his tool of trade (a truck) to deliver food to the local community.
Unanimously my business customers say the path forward is to focus on their strengths that will allow them to differentiate and lead. This includes making it easier to use their product/access their service, or embracing and imbedding digital technologies to improve efficiencies.
We have seen rapid innovation and transformation of the user experience digitally. COVID-19 has also provided us with a gateway for digital tools to transform and assist humandriven processes. It is unlikely that they will completely replace in-person interactions, but businesses do need to rethink and reconsider the digital possibilities. There will certainly be practices and experiences that will now forever be primarily digitally focussed.
As a banker I am always looking to support businesses that invest in people, run efficient operating models or have a smart business idea that meets customer needs. COVID has provided a stern test of a firm’s ability to remain competitive, resilient and ultimately to keep making an impact. Some companies will fail. Hopefully more will succeed. If any Bond Alumni have businesses they would like to talk about, please reach out - I am happy to brainstorm and help.
Adam Roberts (Class of 2008) is Senior Vice-President, Impact Investing at Macquarie Infrastructure and Real Assets.
Events of 2020 have placed tremendous stress on individuals, businesses, communities and governments and in many cases COVID-19 has exacerbated trends around global challenges of inequality and climate.
We do, however, have an opportunity to rethink the status quo position to deliver ‘profit with purpose’ and focus our efforts on building sustainable and more resilient businesses.
Impact investing requires the intention to generate positive, measurable social and environmental impact in addition to and not sacrificing, financial returns. Nearly US$50 billion was raised for impact investing in 2019 with the total market estimated to be between US$200-300 billion and grown by more than 50 percent per year over recent years.
CONSIDER OPERATING MODELS AND FOCUS ON SUSTAINABILITY
Incorporating sustainability provides more than just societal and environmental benefits, but also delivers financial benefits too, as more sustainable businesses have greater longevity and therefore command higher valuations. The shift towards delivering stakeholder returns (not just shareholder returns) is accelerating and expected to soon become a ‘must-have’.
SUSTAINABILITY IS ALSO IMPACTING INVESTMENT DECISIONS
This behavioural shift in stakeholder responsibility is also driving changes in the way institutional investors are allocating capital. Institutional investors – like superannuation funds and insurance companies – are listening to the shifting views of their clients and considering impact and sustainability as part of their investment practices. This trend is expected to accelerate as millennials rise through the workforce and enter leadership positions.
UNDERSTAND MEGATRENDS AND POSITION YOURSELF FOR THE FUTURE
Megatrends such as urbanisation, resource efficiency and technological developments are driving opportunities to invest in new and innovative solutions. Nearly US$2 trillion is required over the next decade across clean energy storage, recycling and circular waste solutions, water efficiency, electrification of transport and affordable housing. Governments, after enacting some of the largest stimulus measures in post-war history, are considering their role in service provision. This is expected to provide more opportunities for businesses to deliver investment and innovation across essential services.
Significant opportunities may be found in times of greatest challenge or uncertainty. Exercise courage and sound judgment and take measured risks that may be transformational and pay off over the long-term.
Dr George Hrivnak is Associate Dean, Learning & Teaching, Bond Business School.
The pandemic has caused staggering disruption to businesses and economies around the world.
As we continue to look forward to an identifiable end to the current crisis, what lessons can be learned to help us prepare for the next one?
This crisis has shown many leaders just how fast-moving and agile their organisations can be. Departmental silos, unclear strategies and slow decision-making are some of the frequent barriers inhibiting organisational productivity and dexterity. To keep up with the demands of a dynamic, rapidly growing crisis, many leaders were forced to develop new mechanisms within their organisations to increase their capacity to quickly respond. Although many of these changes were necessarily ad hoc, successful firms will find ways to institutionalise these new efficiencies so that they are sustainable.
Further, companies of all sizes have had to quickly embrace digital technologies due to travel limits, social distancing requirements and other restrictions. From virtual meetings to remote learning, technological transformation has been drastically accelerated by the pandemic.
Organisations that learn this lesson will work to enable faster decision-making, improve internal communication and collaboration and increase their strategic investment in information technology to enable a faster, more agile organisation.
Speed provides little benefit if you don’t have a clear direction of where you’re headed. During a crisis, people are already motivated to act, but they often don’t know what to do. Providing this guidance requires effective leadership. In particular, organisational leaders need to monitor the situation, seek credible information, think clearly, act decisively and help everyone work together through the crisis. Perhaps most importantly, effective leaders make it a priority to frequently communicate to staff in a manner that is consistently transparent, honest and empathetic.
One of the benefits of communicating this way is the reassurance it provides to those who have felt shaken, stressed and fatigued during the crisis. Although some of us may be more resilient than others, it is both an individual and a collective capacity that can be developed and enhanced. For example, knowing who you are, what you’re good at (and not good at) and having a clear sense of purpose can all increase resilience.
Viewing crises as an opportunity can also help build resilience. Facing a significant challenge is often when we discover both what we’re truly capable of achieving and what our latent strengths or talents are. However, such growth doesn’t just happen. We need to engage in a deliberate process to reflect, analyse and learn from the experience of adversity. This will not only help us become more resilient and capable than we were before, but also help us develop effective strategies for future crises.
