Panelists: Peter Brabeck-Lemathe; Chairman Emeritus, Nestlé & Markus Neuhaus; Former Chairman, PwC, Switzerland; both holding multiple board positions in leading companies in the product, service and non-profit sectors
Discussion leader and brief summary: Dr. Peter Lorange
Preamble
A new crisis is bound to come, but when? And in what form? What will the new or next normal be after this crisis, and others? There are always opportunities to seize, but strong leadership skills and excellent leaders can make the difference. Understanding the cycles is critical.
Key consumer changes
Relatively more focus now on essentials (but, remarkably, no long-term stock-cuts! The supply food work(s/ed)!
But, more stock-ups, i.e. there will be exceptional swings in demand; both ups and downs!
E-commerce is here to stay (wide increase compared with before):
Less “impulse” buying; (the impulse brands require to be “in sight”)
Established, reliable brands; “safety”!
Back to “value shopping”
Environmental concerns
Key changes in the way we work
The government is often too slow and not reacting in time! Don’t wait for government measures or decisions. Use your own due diligence and market intelligence to make your own decisions quickly.
The CEO: before, the CEO was more long-term, strategic in focus, a visionary leader, but now he/she is solo. Now more short-term, operational, task force teams, safety of employees, customers and stakeholders.
Working more and more from home now, but also some from the office. Although one must remember that others can not work from home and are bound to their factories, warehouses, distribution centers and other areas where normal presence is obligatory. (Keep in mind, all of on the “front line”.)
Reduce cash:
Drop some projects, some investments
Reduce SKUs but keep up supply chains
Stop/slowdown new hiring
Adopt task-specific IT support, and do keep in mind that your IT capacity may need to be increased, which will help to reduce cash in the long-run.
Office space: social distancing is here to stay, in some form. Thus, relatively less open office space. I.e. relatively less efficient office space, more expensive. Repurposing facilities may be necessary.
Speed
The slowness of government: already discussed.
Simplify the value chain:
Logistics focus: how do you structure your supply lines (local, produce and use, rationalize, diversify, increase flexibility…
Outsourcing: what to build/produce?
What to buy?
Innovations
This is the time for thinking now, and for implementing, fast!
Be as creative as possible.
Online presences can become even more innovative.
Culture
Core corporate culture be maintained as wished (as before in light of today’s virtual world realities?)
Face-to-face contact is key: trust building; “get to know”.
How to bring in new team members (new board members), given this virtual reality?
How can you manage the attitudes and minds of key people? Teams that formed well before, may need revision now or later.
For how long can a uni-dimensional focus on virtuality be maintained without dysfunctional effects on one’s corporate culture? A combination of “face-to-face” and virtuality is likely to be a norm in the future.
Consider the harmony and balance between machine and human. Be prepared that this may change. If you want to be more employee concentrated, you will need more education and training, as well as to have the learning mindset.
Working with CEO-led task forces that are operational and inclusive can help.
Risk assessment takes on a bigger role. Do a risk map.
Senior executives’ personal habits
One is often more or less alone at the top. Stay focused! Do not give up!
Learn to fight against yourself (your fear, insecurity). And rely on yourself so you can overcome that critical moment.
Be open-minded, have broad interests. If not, it can often be hard to retire! And you may miss critical impulses for inspiration and learning from others and other things that can be useful to the company, and to you.
Enjoy what you are doing. Is this job for you? (I.e. do you like it?). Work is not a negative! Be positive, motivated!
Be healthy. Careers are only successful when you have sufficient reserves.
And when you start your company exit, prepare yourself for your descent.
Don’t let politics distract you - in and outside the company. Stay focused on your task.
Appendix
Energy
Demand for oil is dramatically down, and ample supply!
Hence, the oil market collapses.
The world’s sources for clean water are probably more scarce that the oil reserves.
Other points
Going back to the old normal, is not enough. Pick and choose what was good and not good and move forward faster.
Find new balance.
Contemplate using a new management and leadership style (task oriented vs. results oriented, different balances, new criteria to deal with both).
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