4 ways to become essential in a changed world

We’re only halfway through 2020, but we already know it will be one for the history books. We’re living in unprecedented times, and no version of a post-COVID world will look the same as our pre-pandemic universe. But I keep going back to the lines of a poem that’s making social media rounds: “What if 2020 is the year we’ve been waiting for? ?A year so uncomfortable, so painful, so scary, so raw — that it finally forces us to grow.”

Look at the drastic shift in consumer behavior over the past few months as people rapidly dialed back to the basics. As consumers worked from home and sheltered in place, the U.S. savings rate soared to a stunning 33% in April, up from just 8% in February, according to the U.S. Bureau of Economic Analysis. Wants? Those are so January.

Most experts agree that economic uncertainty, like uncertainty about the arc of COVID-19, will linger. As a result, cash-strapped customers and companies need to be ruthless when deciding what to keep and what to ditch. For consumers, it might mean a want, like a $6 coffee sipped in a cozy cafe, is a no-go. And for businesses, the life of the company could depend on choosing the right things to sacrifice. What’s the business equivalent of food, water, and shelter? And how do you become a must-have instead of a nice-to-have?

Leaders in all industries need to decide what’s essential about their operations, processes, products or services. Recently in strategy+business, I wrote about the four behaviors leaders need to embrace to become essential. But taking those steps requires asking tough questions that can help get you there. Here they are:

1 - Double down on digital 

As the physical world treaded water in a quarantine-induced riptide, truly digital companies rose to the top. Individuals opened their computers to work, shop, communicate and celebrate milestones from behind screens. The entire world took digital to a new level. As a result, companies that didn’t commit to digital—and to meeting customers where they were: online—likely experienced a rude awakening.

Those who simply dipped their toes in the ocean of digital are now playing catch up. The good news is, many executives seem to recognize this, and as they look for ways to slash costs, digital is getting a reprieve. Just ask U.S.-based CFOs: While 78 percent said their company plans to defer or cut investments because of the pandemic, in PwC’s recent CFO survey, only 17 percent said those cuts extend to digital transformation. 

So, before the next big disruption, get in gear and lay out a plan. Take a look at your new remote environment because digital, tech-enabled virtual work is here to stay. Your customers may want to have more low-touch, digital experiences now, too. What are they ditching? What are they flocking to? How can you drive to that in what you do? 

Next, put yourself in your employees shoes and ask yourself how you can help them be more successful in meeting those new demands. What tools will make their jobs easier? What will enable them to be more collaborative and make customer service better, faster, and stronger? How can you bring in diverse perspectives and assemble the right team at the right time? (We do it through BXT, which challenges us to shed typical, inefficient ways of working).

Keep in mind this strategy should be ever-evolving, but with the right digital armor, you’ll be poised to swiftly adapt to unforeseen changes. But if you don’t double down on digital—from efficiencies and emerging tech to collaboration and virtual tools—you’ll have an extremely short runway for success in the next year.

2 - Know what stays; know what goes

What to sacrifice, what to keep? Customer experience (CX) and digital transformation fall squarely in the keep column. In fact, only 9% of leaders said customer experience is on the deferred or canceled investments chopping block, according to PwC’s CFO survey. And I’d argue with even the few who said CX gets the ax. 

To become essential, you can’t let customer experience falter. Go back to the basics and ask yourself: What will make my company a must-have in the eyes of my customers or clients? (The answer will likely be different from what it was just a few years ago). Then, look at digital transformation as the vessel to get you there. Tech tools and new ways of working are the building blocks that can enable you to accomplish swift change—while simultaneously delivering uninterrupted stellar customer experiences. 

Widespread shutdowns also forced companies to examine their breadth of activities. Which products and services had the most impact on top-line revenue? Keep in mind margins may be irrelevant right now, because they’re all under pressure. Examine those likely to recover in 60, 90, or 180 days. The first things to go? The things you’ve always done, just because you’ve always done them. Focus on calculated, data-based decisions.

Next, look at top-line revenue, capitalizing on what suffered the least. De-prioritize what was pushed aside in the rush to keep your head above water. For everything in the middle, can you shift products or services quickly to meet a burgeoning demand or make it more relevant faster?

3 - Think in sprints

Snap out of the growth strategy mentality. 

You’re in the middle of a crisis, but in the back of your mind you’re thinking you’ll get back to growth soon enough, aren’t you? Maybe, but not soon, and not if you don’t change how you’re working now.

To thrive, think in shorter increments. Let’s call them survival sprints. Break every problem, strategy and to-do list into 2-to- 3-week survival sprints. Some companies have already said they won’t be giving quarterly guidance. Ask yourself: What needs to be done to build in flexibility and agility that will position me better today? And once today is taken care of, what about the future?

Have you been planning rollouts and product changes in terms of multiple quarters or years? Let that go, too. Tell yourself: If I want to be essential and emerge stronger, I have a small timeframe to make this happen. Consider how that changes everything you do, the decisions you make, the team you assemble, as well as the tools and tech you need to deliver. Then make those things happen now.

4 - Resilient operations: the holy grail

If resilience is your Everest, ditch the idea of digital as a singular effort. Instead, embrace it as your all-encompassing master plan. It is your strategy. Build everything from that perspective. Invest in transformation and technologies — not as one-offs, but as the best way to pull ahead of the competition. Couple that with the willingness to quickly pivot and you’ll be well on your way.

While making such shifts amid a crisis may sound like a tall order, companies succeed when teams work seamlessly together on the toughest challenges. It calls for the perfect blend of BXT (business, experience, and technology) and a commitment to working bolder and being better prepared for constant change. 

Ask yourself: How do I set an example and work in ways that kick typical to the curb? Beyond that, how do I transcend survival mode and boost productivity? They’re not easy questions with simple answers, but your people look to you for guidance during trying times. Don’t bury your head in the sand. And don’t assume the questions stop there. How can you set clear expectations to avoid messy handoffs? How will you motivate your team to work better amid the mess? How do you quickly identify the most pressing issues and remedy big problems?

Asking tough questions and leading from a command-and-control position may feel like it goes against the grain of your business ideals. But it’s necessary right now. Expect some initial negative impacts that will change your way of working, your ideals on how ideas are cultivated and executed, and how your culture will fare while navigating crises. It’s the only way you can emerge stronger. (Need proof? Check out how we helped Chipotle build an unbreakable bond with customers). 

Assessing and reframing the things that used to work builds grit, challenges you to be creative and, ultimately, helps define your essentials.