Balance : the key tilting factor

The length of the health crisis will determine the depth of the financial crisis.

While we are all currently focused on the short term to ensure we can contain this pandemic however it would be behaving like an ostrich hiding its head in the sand if we ignore to think about the impact this pandemic with have on our economy.

Every situation has two sides to it - the opportunity and the negative impact and the difference between the two lies in the fact that do you have a strategy. I am no economic expert yet am going to share my perspective based on discussions with others and reading stuff (which we all have tonnes of nowadays).

So like always lets look at the Opportunity first -

• We have risen beyond geographic boundaries, politics, religion, race and anything else that may have ever divided us in the past. I hope we are able maintain this fabric of our new society for other social causes too and make this world a better place to be collectively.
• We have found the #WFH (work from home) option to be real. For whatever reasons we had against this option in the past this is now here to stay. Get you Home Office set up if you don't already have one cause am sure you are going to find use for this in the future.
• While I hate gender based metaphors I cant find a better one for this so this pandemic emergency situation will differentiate the "men from the boys" in business. No, I am not talking about leadership but business principles. If a business was too dependent on only one product. modality, customer segment, geography to give them a large chunk of their business this is going to be an opportunity to redesign either proactively or as a reactive response. we always now the risk but never did have a chance to realign a running business operation (and now you have it!).
• Purpose based businesses will see a surge in the coming times. This situation of crisis has made us re-evaluate what do we really want and who do we like to engage with. Most social media platforms are buzzing with opportunist firms wanting to attract customers but then there are few who are actually leaning in. Engaging their customers and prospects with maybe no short term gain but with empathy in the current situation. We are all in this together and we will need to come together to build back this economy brick by brick and lets ensure this time we pick the right bricks.
• Employee engagement will become visible and you will be able to "sieve the chaff". While there are some who believe #WFH is a paid holiday and I will do what I am asked to there are others who are busy reaching out to others, coming up with new ideas of engagement, finding opportunity in the situation to do what always moved to the back burner due to paucity of time. great way to identify you High potential talent and ensure you can leverage them as your strength. Leadership is not a role but a choice.

Lets now consider some negative impacts -

• The first impact is on the small base businesses - the lock down is going to lock them down. I do hope they have already started to engage with their vendors, customers and partners to explore ways to renegotiate terms and conditions.
• The other impact is going to be on the Cash flow. With most businesses hitting the pause button the cash flow is going to be the biggest issue to manage. This is going to be a test of how we balance our empathy for humanity and business priorities. While am sure there is going to be stimulus from the governments this is a good time to evaluate all the decisions on your table and prioritize the need to have versus the nice to have. This would apply to individuals as well. Don't sit at home and spend on online shopping !
• Jobs will get impacted. While the government is continuously urging businesses to ensure no loss of jobs but there is bound to be if not in short term then for sure in the long term. A lot of expansion plans will see a hit. Some industries will be hit more than the others. For example travel or restaurants businesses.
• Sentiment of the markets. With the volatility of the past few weeks and for the coming weeks there is going to be a downward spiral hitting the market cap or organizations. There may need to emerge new criteria for governance (ESG) and identifying promising businesses.

Personally as well am sure we are all going through the oscillation of emotions between anxiety and despair to hope and prosperity. There has to be a light at the end of this tunnel and the only thing that will get us out of here is the collective wisdom of each individual to contain the impact of the pandemic.

Stay safe and indoors everyone !