Re-engineering business with innovation, market shift and optimism

With little warning and not enough time to prepare, business submitted to drastic transformation. Shyam Chirkoot looks at how business leaders will face the ultimate test of survival during this time.

The lockdown move was swift, causing pandemonium to industries. Business leaders will be needing a roadmap to navigate from a shuttered economy to stability, growth and prosperity.

The pandemic also levered an enormous transitional challenge. Clomark had to close its automotive division during level 5 of the lockdown, but printed packaging for essential items became an area of demand. It took some 11 th hour convincing on our part to secure the supply chain, as some raw material suppliers had initially opted to close. We had to be forthright in our communication with material suppliers to remain open and support government’s assurance that food and other essential items would be available during lockdown. Clomark’s leaders responded to a new environment, new customers and heightened societal expectations.

Whilst government is making available the stimulus package of R500 billion, it is presently uncertain as to which sectors and businesses will qualify for relief, nor what the qualification conditions are.

Business leaders cannot afford to wait for a bailout – the need to innovate, and innovate now, is critical for business sustainability. Business leaders need to remain focused, optimistic and apply frugality in the new playing field. New norms are quickly replacing ones of the recent past, which may very well present new opportunities.

Not all is doom and gloom, however. While the lockdown stands disastrous for many industries, it has provided opportunities for other businesses. Over the past few weeks, Clomark manufactured printed packaging (self-adhesive labels, shrink-sleeves, printed cartons, etc) for food and hygiene products. Demand for hand sanitisers has seen new brands emerging, and established brands extending their product range to include sanitisers and disinfectants.

High demand for these products, particularly sanitisers in a short period, saw a major shortage in the market. Product manufacturers, together with its supply chain, were under immense pressure to turnaround products quickly. Thanks to internal designing capabilities, we could assist clients from design concept to the tangible product.

We can very well learn from the practices of businesses abroad. Remaining fixated on manufacturing products that may no longer be in demand is a recipe for disaster: the need to pre-empt what the market will be doing over the next year or two is the new challenge. Automotive sales have taken a nosedive in Europe, and South Africa may expect the same, for the near future at least. Supposing businesses focus on its technological capabilities rather than its products, leapfrogging these into other markets that are seeing growth.

An injection moulding company that manufactures automotive components could expand its manufacturing into healthcare essential items such as face shields, or even in creating new, innovative products, stimulating a new demand. We have seen automotive companies, lending their engineering ingenuity to the quick development of ventilators and similar products. Similarly, Clomark has used its current automotive technology to develop disposable plastic aprons for the healthcare sector, offering this to government largely as a charitable gesture.

Businesses in essential services had to think on their feet to implement best hygiene practices, to minimise business and societal disruption.

As the lockdown is eased, businesses must consider employee and business risk going forward, and implement robust risk mitigation procedures. We have seen stringent new procedures being developed by automotive assembly plants, and adopted many good

practices into our risk mitigation practices. Where possible, we are keeping as many workers employed, with a reduction in working hours, coupled to staff rotation. This way, at least most employees get a slice of the pie. Weare providing company accommodation and company transport to those key employees that are at high risk to coronavirus exposure.

Businesses simply have to adapt quickly to these new circumstances, by remaining optimistic, being creative in re-segmenting the market for new opportunities, and employing a well-considered risk mitigation plan. These are quickly becoming critical success factors for businesses, as we navigate through unchartered waters. Never has the test on leadership been as demanding. One day, we shall look back at COVID-19 as an opportunity for development, rather than just catastrophe. •

SHYAM CHIRKOOT is the managing director of Clomark.

Clomark – www.clomark.com

“One day, we shall look back at COVID-19 as an opportunity for development, rather than just catastrophe”