If the pandemic hasn’t changed how you and your teammates do business, it will. We’re still in the early stages of a transition that will inevitably reshape entire industries. The ripple effects will reach even the most insulated firms; here’s how to evaluate and prepare for what’s next.
As devastating as the economic impact has already been for millions of Americans, we still haven’t felt the full force. Trillions of dollars of federal and state stimulus, plus a wonky stock market, have lulled many into a state of overconfidence. Looking ahead, unemployment benefits designed to support families will expire on December 31. Without help, the loss of income, and the subsequent loss of income, will filter throughout the economy; don’t expect a dip, but a long gradual stumble.
These changes will reshape revenues, forecasts, even how we measure success or failure. Here are four key ways to change how we think in the months ahead.
Evaluating Evaluation. Many leaders rely on a number of key metrics to look at KPIs. Whatever your key performance indicators in the pre-pandemic world, what we’re looking at now needs to be measured differently. First, it’s dangerous and inaccurate to measure 2020 numbers against previous years. It may even be a challenge to accurately compare 2021 to 2019; instead of stumbling on year-on-year profits or revenues, focus on short-term metrics and research wider industry stands. Many trade organizations or associates offer industry metrics that offer a more real-time look at how consumer demand is changing and help to forecast what’s working and what isn’t.
Map Out A New Route. Your business plan or forecast needs to adjust to the unique challenges of your own industry, but should also reflect the broader economic trends. Instead of battling to meet ambitious sales goals, take a step back and create a strategy divided into two buckets. One should set targets that ensure your survival; think of it as the foundation. That’s the ground level of what your company can and should do each and every day. Next, build the first floor. This should forecast revenues and profits that ensure tight but comfortable levels of employment and expenditures, including marketing, bonuses, and other incentives that reward current team members without forecasting additional hires.
Anticipate and Act. Dedicate time and attention toward anticipating how the pandemic will affect your customers, too. As captain, it’s easy to get focused on things below deck, plugging holes, taking inventory, and checking on your crew. That’s important, but the only way to chart a course is to get on the bridge and scan the horizon. Consumer habits, demands, and confidence are all changing and fluid. By getting a few steps ahead of your customers, you’ll be ready to meet their needs once they catch up.
Take Care of the Team. We’ve said it before and we’ll say it again; if you’ve done your job right, the solutions that will get you through this pandemic should be sitting in the room with you, or at least on the Zoom call. Employees that are empowered, engaged, and invigorated are the best assets in the world. Make it a priority to check-in and stay connected, and listen. It’s easy to listen to comments, ideas, and suggestions and let that feedback fall through the cracks. When you receive that feedback, follow up; even a half-formed idea can blossom if you give that employee the fuel to expand and explain.
Leaders have a unique role in any organization, but when there are challenges across the board, even the best of us can’t do it alone. Reach out for help, keep your team focused on the basics, and remember that you will not be able to fight the pandemic fallout on your own; it’s going to take the whole team.
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