Customer behavior is the third issue. In the United States, 60% of transactions were happened on the internet in the past four months. But an interesting question we should consider, will the customers return to traditional shopping way after virus recedes. If the proposition was, companies shouldn’t move all of the business to the digital platform.
The fourth problem is agile management. Nowadays, only a few companies have the ability to adapt to global uncertainty, such as war, earthquake, economic crisis, or virus. For the organization, we should create a new “muscle” model, an enterprise-wide ability to absorb uncertainty, quickly learning the issues, finally incorporate lessons into the model quickly.
Many companies are re-developing business models and configuring resources. It is risky if business transformations are blind. We are going to analyze four forces that help companies to create a “muscle” model and turn back to the next normal.
1)The metamorphosis of demand
No one has failed to notice that many consumers shop online for groceries in the past four months. An interesting phenomenon is there is a 40% growth of first-time consumers, who never use online retail before, use digital goods and services. Recent McKinsey surveys find that 13% of retail customers except to use mobile banking services since COVID-19 started. In summary, we can predict the digital platform will change customer loyalties in the next few years.
Another phenomenon is entertainment consumption has fallen. The reason is not only continuing personal health concerns but also the increased caring about family rather than luxury products.
2)Rapid changes in the workforce
Mckinsey Global Institute study finds that up to 1/3 of US jobs may vulnerable to furloughs, pay cuts, and layoffs. One of the reasons is health-related issues, including workers who are ill or vulnerable to infection. So, the health body is a key parameter to influence unemployment.
The second change is the requirements of technical skills are in short apply. For example, some B2B companies need talents who have digital sales and data analytical skills. You can go to search Google Star Plan (谷歌海星计划) in China.
“Office at Home” is the key change in the workforce. But mangers have to face two issues: measurement of work efficiency and lack of multimedia devices.
3)Shifts in regulations
Governments around the world are using varied philosophies of public health. For example, there are 13 states in the United States are not allowed any generations. 24 stated ban gatherings of over ten people. Political challenges, social behaviors, and economic realities make business leaders are understandably anxious to protect employees while ensuring compliance.
4)Safety can increase confidence
An important lesson for companies is the increasing economic activity and reduced physical distancing has driven a resurgence of the virus. Any business decisions should not ignore health implications. I guess life healthy behaviors and safety will be the essential parameters for strategical decisions. Currently, testing is a critical method to ensure safety in the workplace. Polymerase chain reaction (PCR) tests, serological tests, and other new medical methods can help companies set working rules, such as distancing guidelines, stagger shifts, and so on. The test results should open to the public, which can improve confidence to the company’s future.
对于企业来说，如何应对大规模衰退或者动乱时期，是及其重要的生存能力。新冠肺炎是一次考验企业适应和激励转型的重要事件。对于如何调动员工和客户共同面对困难，并且稳定运营是我们下一期讲解的问题。你将探索一个全新的职能部门- “Nerve Center”。我们从敏捷管理的角度，思考如何在特殊时期应对客户流失、财政压力、员工和客户危机。另一个我们会讨论的点是，在非特殊时期，“Nerve Center”需要做什么样的准备。尽请期待。
Responding to coronavirus: The minimum viable nerve center.Published by McKinsey & Company; Author: Mihir Mysore, Bob Sterfels, and Matt Wilson. Date: 2020/05/21
Lives and Livelihoods: Assessing the near-term impact of COVID-19 on US workers.Published by McKinsey & Company; Author: Susan Lund, Kweilin Ellingrud, Bryan Hancock, James Manyika, and André Dua. Date: 2020/04/02
国际商学院| 数据战略与商业创新研究小组 曹振宇