Archives for April 2020

Across the world, we are collectively experiencing one of the most significant changes of our lives. The loss of physical touch, standing close to people without fear, and dinner out with friends. We have lost the option of celebrating milestone – birthdays, weddings, graduations, baby showers, holidays and cancelled vacations, the losses are mounting.

Many frontline workers can no longer go home and spend time with their families. Countless numbers of people have lost childcare while working, have taken over the education of their kids while working. Others are feeling the stress of uncertainty, both in their ability to provide for those who depend on them and keeping them safe and well.

We keep hearing that we are all in the same boat but are we? Perhaps we are in the same storm with many, many different boats in the water. Boats that have strength to sustain the strongest waves, smaller boats that have been reinforced over time and are resilient, and those that are new and untried.

How the boat maneuvers in these waters will depend heavily on the agility of the captain and the crew. The outcomes will be greatly dependent on how the boat is steered.

While agility in leadership has been a cornerstone to success, the coming change will rely even more heavily on the agility of the leaders themselves in companies, large and small.

Physical distancing touches every aspect business and as we prepare to reopen our business operations regardless of size and sector we have to approach this reset thinking in 3D. Thinking in 3D gives us a different perspective than simply looking at the scenario in a narrow cluster of facts and data. Leaders now need to look deep into their organization and take into consideration the impact on its people, customers, business operations, market conditions, available cash and future capital required, and backup plans if there is a second wave of COVID-19.

This represents a rethink of how leaders will need to move their business forward for short and long term success. Protecting and embracing employees will be key to sustainable success. Much more emphasis will be needed on health and wellness, communicating with transparency on a frequent basis and engaging for feedback and ideas.

Cutting staff to reduce costs is typically the fastest approach to saving money. But is it the best? Without talent and experience moving forward will be even more difficult, so expenses in other areas should be looked at first: consolidation, seeking better pricing from suppliers and other stakeholders might be considered as a first option. Perhaps less office space frees up resources to retain a company’s most valuable asset – its people.

It may be very well that working from home will be the mainstay for quite sometime in combination with essential core teams working in an office/manufacturing setting. Leaders will need to be open-minded on these matters of how to best design workflow and productivity while protecting employees. Tough questions will need to be asked and innovative solutions sought. Ensuring solid technology platforms are in place to support a hybrid model of working at home and in office will be essential.

Fostering relationships and developing new ways of accountability will be a factor in ensuring an engaged and focused workforce. Leaders will need to hone their listening skills and connect with their employees on an emotional level to drive morale, retention and solutions to tough problems. This will take more energy and more time on the part of leaders at all levels on a consistent basis. New employee programs, such as reward programs, will need to be introduced as well and may look quite different than they do today.

Regardless of the boat you are in – one key word comes to mind – Agility!

Of the many  business developments related to the COVID-19 epidemic, none has been more dramatic than the demand for medical-grade masks. The drive to meet the global need has created a supply surge in China unlike anything in the past decade, ending in a new, multi-nation industry.

As the virus continued spreading around the world, the demand for medical-grade masks exploded. Healthcare Professionals (HCP) are not properly equipped in most countries. In China, it is the contrary. Professionals are protected and the population is systematically wearing masks in public areas.

Before the crisis, manufacturers in China were supplying roughly 20M masks per day. With the epidemic, the manufacturing capacity in China increased to over 100M per day in March. The global pandemic spawned a business opportunity with booming demand.

With such an opportunity, reality rapidly takes over.  In China, the price of masks has escalated. It is now more than 3 to 4 times what it was before the epidemic. Quality has also become an issue. New manufacturers have joined the business, some without the proper certification.

Foreign buyers have fallen foul of speculators and illegal manufacturers.  Foreign governments and private businesses have increased the tension with panic purchasing, driving the price of masks still higher.

Negotiation and payment does not end the story. Now you have to get them from China to your country. But there is no transportation.

The collapse of the passenger airline business means there are very few regular flights for cargo. What flights there are may be subject to wartime requisition regulations imposed by importing countries, confiscating masks transiting their airports.

The alternative is to charter a cargo plane – at a very steep price. Chartering a plane just for masks during “peace time” is insane, given the low added value and big volume. Now in “war time”, it is justified by horrendous pricing.  Half of the mask’s value (landed in Europe) is made of transportation costs.

Other restrictions can arise.   Alternative exporting through Hong Kong – a Special Administrative Region — is not possible since Chinese customs refuse to release masks going to Hong Kong. They are apparently afraid it would supply masks to the students who would then demonstrate again.

At the end of March, the supply panic is at its peak. Several cases of sub-standard Chinese equipment are made public in Europe. China reacts swiftly by imposing a ban on all manufacturers of face masks who are not properly registered.  It is a good measure, but the list doesn’t include many new manufacturers.

Customs also acts to restrain the outflow, adding another shock to the supply chain on top of the challenges of procurement and transportation.

As we advance through April,  rationality is returning and many countries have found their way to manufacture these essential products by themselves. Most European countries have a strong textile industry and thus raw materials.

With the mounting economic pains, workers are available to do the job locally, the opportunities now confront local entrepreneurs and a new virtuous cycle is born!

EDITOR’S NOTE

Eric Bouteiller is leader of the Life Sciences & Health Practice at Cornerstone, based in Beijing. He has been working pro bono on behalf of the French Chamber in China to coordinate the sourcing of masks and medical equipment much needed in France and Europe.  Contact: eric-bouteiller@cornerstone-group.com for additional information.

It is said that every cloud has a silver lining.  It may be hard to find right now in the Coronavirus cloud, but new opportunities arise in all crises.

Perhaps this pandemic will help organizations around the world to further value the importance of digital transformation of processes, investment in training their leaders and bringing new skills to their workforce, in pursuit of strategic management of the organizational culture.  In short, work for the common good.

In only a few days, companies and economies were significantly impacted by the speed of evolution of the Coronavirus (COVID-19) and its consequences in society.

For Human Resources areas, crisis management involves a great challenge, not only because it directly affects all areas of a company, but also because it tests the fundamental efficiency of an organization — leadership, resilience, trust, communication and the ability to adapt.

Many companies adopted measures aimed at reinforcing hygiene and coexistence practices, but the greatest impact in the current situation was the suspension of travel. This led to the implementation of remote working models in organizations where the policies were probably not developed or were not sufficient to meet the crisis. In this context, those responsible for Human Resources have to act as facilitators so that the business can continue, regardless of the circumstances.

In the first place, it is key that they have the necessary tools and processes that allow rapid learning of work and remote leadership for people who never worked this way, generating virtual training spaces for leaders and collaborators.

Secondly, they must manage information continuously through effective, impactful channels that reach all collaborators with the necessary speed (email, intranet, webinar, posters, etc.).

Communications should include

• issues that raise awareness of the need to be responsible for oneself and others,
• measures to take to avoid spreading the virus
• actions to prevent the spread, especially to avoid making mistakes that later have much higher costs for the person and the organization . It is important to be flexible, adapt and change without fear depending on the situation.

Likewise, it is essential that Human Resources reach out to employees stranded in other countries, providing everything necessary so that they feel cared for by the organization.  HR should  instruct the leaders of these people so that they can follow up with these people.

Containment also requires giving reliable and direct support to workers in particularly challenging circumstances.  Take the case of companies based on the digital economy model or GIG economy such as Uber, Rappi, Globo, whose workforce may experience more complications and uncertainty.

Will they stop working and go into quarantine if appropriate?  Or will they continue to do their work to avoid losing income? This is a time to show empathy and compassion not only as Human Resources leaders but also as an organization. The main theme of communications must make their involvement go a long way in showing that the organization really cares.