5 management priorities for 2021… and beyond

The coronavirus pandemic changed companies’ management priorities during 2020. Business leaders were concerned at first with the health and safety of employees and clients and then, as the months passed, with the viability of their companies. They had to rewrite their plans and, in some cases, rethink their business models.

The good news is that we have learned many lessons thanks to all this uncertainty, such as:

• We have understood that, at critical moments, it’s more necessary than ever to be close to teams – even if it’s virtually or at a social distance.
• We have gained speed in decision-making and in the capacity to correct things that aren’t working.
• We have discovered untapped abilities within our organizations.
• We have learned to do more with less.

And I am sure that you all can think of many more lessons over the course of this year.

All of this means that we begin 2021 better prepared to manage uncertainty and to identify opportunities within and outside our organizations.

What should CEOs and other business leaders be focused on?

In my opinion, there are five things that are particularly important to do in this year that’s just underway:

1.    Cultivate your company’s capacity to adapt.

Most forecasts indicate that it will be a tough year for companies and that economic recovery will be slow to arrive or will take a K-shape. Even in sectors with optimistic forecasts, all indications are that the re-opening of businesses and the reactivation of consumption will come in fits and starts.  

Organizations in 2020 showed an incredible ability to adapt to new ways of working and planning, taking into account diverse scenarios and adjusting resources accordingly. 

During 2021 we will have to continue exercising that flexibility in the face of change. You may feel fatigued by all of the uncertainty, but we have to strengthen those adaptability muscles, which should come easier to us now. We shouldn’t stop developing that healthy habit of reading the context and adapting.

2.   Make the most of digital opportunities.

We’ve been talking about digital transformation for many years, but many people weren’t fully convinced until coronavirus confined all of us and suddenly forced everyone to do all of their activities remotely.

The year 2021 may be a good time to move out of “digital survival mode” and into thinking in digital terms and taking advantage of all the opportunities that digitalization offers. Some sectors have discovered the importance of online channels for sales, and others for operations. In other companies, digital transformation will have to do with new ways of working, innovating in business models, virtual training and improving processes.  

 3.    Maintain a solid and well-aligned team.

A team’s commitment is a key success factor for a company at any time. But in crisis situations it is more important than ever that teams share a vision and work together in a cohesive way.

During 2020 leaders made an effort to communicate intensely and to be closer to employees. It is important not to lose that connection and to continue cultivating alignment and dedication to the project.

 4.     Combine the short and long term.

At IESE when people ask us about the role of top leadership, we always say that its mission is to guarantee the smooth functioning of the company and to guide the organization toward the future. In this exceptional last year, leaders have had to prioritize urgent issues such as operational change or, in some more complicated cases, financial liquidity. A short-term focus was necessary and will continue to be so in 2021. However, fully recovering from the crisis requires that leaders recover their role and begin thinking in the medium and long term of their companies. 

The start of the year is a good time to re-think the direction of our companies. 

5.     Instill a sense of purpose.

Emergency situations can draw our attention away from what’s truly important. It’s understandable; our focus suddenly changes when we hear an explosion and we turn to see what has happened. In some cases – such as during health emergencies – the new state of alert can help us to concentrate on what is really essential and give meaning to our project.

COVID-19 has given us a unique opportunity to ask ourselves once again about the purpose of our companies and the meaning of the work that our teams do. Many leaders will have realized that without a goal that goes beyond meeting earnings forecasts, it is very difficult to get the commitment you need from people to emerge from the crisis. For this reason, in 2021 leaders must remind themselves of that greater goal, and make sure that decisions and strategies respond to a mission that is worth working for and that has a positive impact on society.

Here’s to a prosperous and well managed 2021.

#CEO #leadership #priorities #2021