Moving Quickly to Capture Growth During COVID-19: Be Bold. Be Adaptive. Be Unafraid by Level5 Strategy

Moving Quickly to Capture Growth During COVID-19 “Be Bold. Be Adaptive. Be Unafraid.”

The is is currently in in Phase 2 of TheNorth NorthAmerican Americaneconomy economy currently Phase 2 the COVID-19 crisis of the COVID-19 crisis

Management teams in most sectors to shift from business continuity and survival to Management teams in most sectors shouldshould begin tobegin shift their focustheir fromfocus business continuity revival strategies that ensure their business have both the financial backbone and prioritized focus to set the and survival to revival strategies that ensure their business have both the financial backbone and stage for them to ‘win’ during the eventual Economic Rebound. prioritized focus to set the stage for them to ‘win’ during the eventual Economic Rebound. SURVIVE

REVIVE

THRIVE

Phase 1

Phase 2

Phase 3

Economic Downturn • • • • • •

Economic Shock to Markets Input Consumption Drops Movement of People and Goods is Halted Consumer/Commercial Confidence Drops Investment and Jobs Decline Government Policies Announced

Stabilization & Normalization • • • • • •

Market Floor Found Input Consumption Stabilizes Movement of People and Goods Stabilizes Consumer/Commercial Confidence Stabilizes Investment and Jobs Stabilizes Government Policies Put Into Practice

Economic Rebound • • • • • •

Market Growth Rebounds to Pre-Shock Levels Input Consumption Rebound Movement of People and Goods Rebounds Consumer/Commercial Consumption Rebound Investment and Jobs Rebound Government Policies Curbed and Reduced

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Different facedifferent differentpaths paths ahead, all be willchallenged Differentindustries industries will will face ahead, but but all will bewith challenged with making decisions quickly making decisions quickly Depending on their industry and financial strength, some companies will face very different Depending on the industry and financial strength, some companies will face very different paths to rebound. Those paths to rebound. Those with faster rebound potential will be better suited to capture growth with faster rebound potential will be better suited to capture growth than those with slower rebound potential. than those with slower rebound potential. Reliance on High-Touch Channels Reliance on Close Human Contact Degree of Discretionary Product / Service Operational Risks Supply Chain Risks Requires New Behaviours to be Adopted

Low FASTER REBOUND Private and confidential. Do not copy. ÂŠ Level5 Strategy 2020

High SLOWER REBOUND

3 3

Regardless of industry, success during Phase 2 requires a shift in focus, from business continuity to growth, while maintaining the same sense of urgency Regardless of industry, that empowered decisivesuccess action during Phase 2 requires a shift in

focus, from business continuity to growth, while maintaining the same During of the urgency initial days of that the crisis, teams moved more quickly than they ever had before to survive. To succeed, sense empowered decisive action they’ll have to keep up the pace. During the initial days of the crisis, teams moved more quickly than they ever had before to survive. To succeed, they’ll have to keep up the pace.

Leaders Moved toSurvive Survive... Leaders MovedQuickly Quickly To ... •

Cash was king, spending was • Cash was king, spending was halted halted and “keeping the lights on” and “keeping the lights on” was the was priority

priority • Leadership teams reacted • Leadership teams reacted quickly to quickly to COVID by efficiently COVID bytheir efficiently focusing focusing energy and their energy and resources resources with •• Teams Teamsthat thathad hadstruggled struggled with speedpre-crisis pre-crisisbegan began move speed to to move mountainsover overweekends weekends mountains

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WillRequire Require . ....and . And Will ThatThat SameSame Decisiveness To Thrive Decisiveness To Thrive •

Spending to be prioritized around what is needed today

•

To achieve KPIs, leaders need to identify how to

•

Defining clear goals and actively engaging VPs and

• Spending to be prioritized around what is needed today to to survive, and what is needed tomorrow to capture survive, and demand what is needed tomorrow to capture shifting shifting demand

• To achieve KPIs, identify to mobilize mobilize theirleaders peopleneed withto the samehow speed, energy, and theiralignment people with samethe speed, energy, and alignment as asthe during survival phase during the survival phase

Directors help how to and best re• Defining clear will goals andleaders activelyidentify engaging VPs allocate foridentify growthhow to best reallocate Directors will resources help leaders resources for growth

Although many management teams have already identified WHAT they could be doing, the key challenge that they face going forward is HOW to execute quickly enough.

Level5 Strategy’s principles for HOW tomove move quickly Level5 Strategy’s principles for HOW to move quickly enough capture Level5 Strategy’s principles for HOW HOW to move move quickly enough tocapture capture Level5 Strategy’s principles forto HOW to quickly enough toto Level5 Strategy’s principles for to quickly enough to Level5 Strategy’s principles for HOW to move quickly enough tocapture capture Level5 Strategy’s principles for HOW move quickly enough to capture meaningful growth stemming from the COVID-19 rebound meaningful growth stemming from the COVID-19 rebound enough to capture meaningful growth stemming from the meaningful growth stemming from the COVID-19 rebound meaningful growth stemming fromthe the COVID-19 rebound meaningful growth stemming from the COVID-19 rebound meaningful growth stemming from COVID-19 rebound COVID-19 rebound

Key Identify Key Identify KeyOpportunities Opportunities IdentifyIdentify KeyOpportunities Opportunities Identify Key Opportunities Identify Key Opportunities Identify Key Opportunities and Prioritize and Prioritize and Prioritize and Prioritize Prioritize and Prioritize and and Prioritize Empower People, Empower People, Empower People, Empower People, Empower People, Empower People, Not Roles Not Roles Empower People, Not Roles Not Roles Roles Not Not Roles Not Roles BuildCross-Functional Cross-Functional Build Build Cross-Functional Build Cross-Functional Build Cross-Functional Build Cross-Functional Build Cross-Functional Self-SustainingTeams Teams Self-Sustaining Self-Sustaining TeamsTeams Self-Sustaining Teams Self-Sustaining Teams Self-Sustaining Self-Sustaining Teams Aggressively Prioritize Aggressively Prioritize Aggressively Prioritize Aggressively Prioritize Resources Aggressively Prioritize Aggressively Prioritize Resources Aggressively Prioritize Resources Resources Resources Resources Resources Private and confidential. Do not copy. © Level5 Strategy 2020

Private and confidential. Do not copy. © Level5 Strategy 2020

Create anApproach forQuickly Quickly Create an for Create an Approach for Quickly Create an Approach Approach for Quickly Create an Approach for Quickly Create an Approach for Quickly Create an Approach for Quickly Evaluating Successes and Failures Evaluating Successes and Failures Evaluating Successes and Failures Evaluating Successes and Failures Evaluating Successes and Evaluating Successes and Failures Evaluating Successes andFailures Failures

Celebrate Successes and Celebrate Successes Celebrate Successes and Celebrate Successes and and Celebrate Successes and Celebrate Successes and Celebrate Successes and Failures Culturally Failures Culturally Failures Culturally Failures Culturally Failures Culturally Failures Culturally Failures Culturally Let the Wins Others Let the Wins Inspire Others Let the WinsInspire Inspire Others Let the Wins Inspire Others Let the Wins Inspire Let the Wins Inspire Others Let the WinsOthers Inspire Others

Identify Key Opportunities and Prioritize • Prioritize and select high-impact opportunities that will lead to short-term growth capture; don’t boil the ocean • Leverage consumer research and your team’s expertise to identify high-impact opportunities • Factor supply chain lead time and cash management into decision making to ensure feasibility • Focus on the 1-2 priorities that best align with organizationally aligned-to objectives and KPIs and resource these with your best and brightest

Empower People, Not Roles • Some individuals thrive on uncertainty while others prefer predictability; recognize individual competencies • Leaders should not feel constrained by people’s job title or years of experience. Empower the individuals that thrive in uncertainty; they will be the ones to drive change • Ensure that you engender trust among these key individuals, they must feel that what they are considering has the backing of leadership and that they will not be asked to do anything that puts them in harm’s way • Change makers need clear goals and direct line of sight to the leadership team, free and clear of typical middle management structures that can impede creativity due risk aversion

Build Cross-Functional Build Cross-Functional Self-Sustaining Teams Self-Sustaining Teams

•

• • • • •

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Individuals championing change often need resources and assets to move quickly. Take a page from agile methodology Individuals championing change often need resources and assets to and create small cross-functional working teams tasked with move quickly. Take a page from agile methodology and create small delivering value cross-functional working teams tasked with delivering value Build teams around specific purposes; expedite progress by Build specific purposes; expedite progress by giving them givingteams themaround increased decision-making autonomy, so long increased decision makingtoautonomy, long as information continues as information continues flow to thesoleadership level to flow to the leadership level Create a purposeful cadence of meetings with realistic shortCreate a purposeful cadence decisions of meetings with realistic short term goals term goals and stage-gated and stage gated decisions

Aggressively Prioritize Resources

• Clear change makers’ plates, growth capture initiatives aren’t a side task; organizational change at speed requires the freedom to think • Clear change makers’ plates, growth-capture initiatives aren’t deeply and sufficient time to try and fail before you find success a side-task; organizational change at speed requires the • Inability and and descope efforts willto result in change being freedomtotoreprioritize think deeply sufficient time try and fail beforefrom you ‘the findside success driven of a desk’, which is a sure fire way reduce creativity and stifle bold thinking • Inability to reprioritize and descope efforts will result in change • Plans befrom constantly adjusted given which shiftingisdemand sentiment beingmust driven ‘the side of a desk’, a sure-fire way as reduce creativity and stifle bold well as supply chain realities; use thinking milestones to box and check progress and ensure your systems are in sync • Plans must be constantly adjusted given shifting demand sentiment as well as supply chain realities; use milestones to box and check progress and ensure your systems are in sync

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Create an Approach for Quickly Evaluating Create an for Quickly Successes andApproach Failures •

•

Evaluating Successes and Failures The organization will be testing dozens of ideas relating to growth and business continuity; not every one of these ideas will be

• successful The organization will be testing dozens of ideas relating to growth and business continuity; not every one of these ideas will be successful

Creating evaluative processes that quickly end failures and promote

• successes Creating evaluative that quickly end failures and is criticalprocesses and will prevent a major ‘backlog’ ofpromote innovation successes is critical and will prevent a major ‘backlog’ of innovation that that stifles the best ideas’ likelihood of success stifles the best ideas’ likelihood of success

Lean on facts and metrics vs “what I think” and “what I feel”. Data

• Lean on facts and metrics vs “what I think” and “what I feel”. Data and and analysis will help steer away from pet projects and ego-based analysis making will help steer away from pet projects and ego based decision decision making

Don’t let perfection stand in the way of progress. Iterating and

• Don’t let perfection stand in the way of progress. Iterating and updating updating is not a bad thing so long as key initial performance criteria is not a bad thing so long as key initial performance criteria are met

are met

Aggressively Prioritize Resources â&#x20AC;˘ The leadership team from the CEO down need to champion the successes and failures of the group on a cultural level â&#x20AC;˘ Celebrating innovations and quick decisions that led to successes, and sharing (but still celebrating) failures that were quickly identified and killed will help to set a cultural expectation that the failure is ok, stasis is not

Let the Wins Inspire Others • A tangential benefit of this approach is that wins are powerful tools for galvanizing and energizing organizations • Successes will show your organization that quick and timely decision making doesn’t just have to be driven by a crisis but can be part of the regular course of business • Let the change makers lead the first changes; others will follow once they’re ready

For all the negativity and challenges associated with the any negativity associated with COVID-19 – and any COVID-19For —alland formand of challenges crisis there are valuable form of crisis – there are valuable lessons to be learned lessons to be learned • There has been better petri dish catalyst to allow leadersto toallow make • no There has been no or better petri-dish or catalyst the changes they leaders knew were needed; barriers they and knew cultural norms must to make the changes were needed; barriers and cultural norms must be broken to succeed be broken to succeed • Those thatso succeed will dothat so by knowing that they need • Those that succeed will do by knowing they need to make make changes to HOW they typically operate, to changes to HOW to they typically operate, to foster the boldness and foster the boldness and creativity required to pivot and creativity required to pivot and capture growth

capture growth

• This will require shifting resources and re-allocating top talent into new • This will require shifting resources, and re-allocating top areas of the business their skillsofand are needed talentwhere into new areas the energy business where their skills

energy are needed • Enduring change and will be created by leaders who lean into EQ more than IQ; identify individuals that have a and drive for change and into • Enduring change passion will be created by leaders who lean give them the tools they need succeed EQ more thantoIQ; identify individuals that have a passion and drive for change and give them the tools they need

to please succeedcontact: For more information,

Efram Lebovits at elebovits@level5strategy.com Sean Pavlidis at spavlidis@level5strategy.com James Hunter at jhunter@level5strategy.com

18 KING STREET EAST MEZZANINE LEVEL TORONTO, ONTARIO M5C 1C4 Level5 Strategy is a leading strategy and transformation consulting firm that helps our clients achieve profitable growth and a superior ROI by leveraging the power of their brand. We focus on four distinct yet interconnected core services: Insights, Strategy, Transformation and Customer Experience. Since our inception in 2002, Level5 Strategy has partnered with over 300 clients across B2B, B2C, government and not-for-profit sectors in Canada, the U.S. and other parts of the globe to navigate their most critical challenges and opportunities and to build and execute practical strategies that convert decisions into actions.

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