Not ‘business as usual’: Lessons from history in recovering from crises

On the 23 March 2020, Boris Johnson, the Prime Minister of the United Kingdom told the country that people 'must' stay at home and certain businesses must close. In the days leading up to, and then following this announcement to shift to remote working where possible, many business leaders sent out updates to clients. I drafted one for the company that I led at the time and reflected on the appropriate message to put out at what was a difficult time for many. I opted for something relatively concise, explaining that we had moved to remote working and that the business would continue uninterrupted.

I read some messages by other companies that took a different approach and proudly stated that it was ‘business as usual’, which I personally thought was the wrong approach for two reasons. First, at a time when some in the sector had been furloughed, lost their jobs, or taken pay cuts, with others facing an uncertain future, I thought this was insensitive. Second, there was nothing usual about the situation, even for businesses that had operated remotely before lockdown. The landscape for all had changed and going forward, the way we work would be different as a result of the global crisis we were and still are experiencing.

'We have been here before'

This prompted me to look back through history, and what I found was a theory that invention and innovation tends to increase during periods of global crisis.

Joseph Schumpeter, one of the most influential economists of the early 20th century, stated that crises were ‘seedbeds of innovation and entrepreneurship’ and that ‘innovations developed during crises generate the gales of creative destruction that launch new technologies, remake existing industries, and give birth to entirely new ones — setting in motion new rounds of economic growth.’

"Innovations developed during crises generate the gales of creative destruction that launch new technologies, remake existing industries, and give birth to entirely new ones — setting in motion new rounds of economic growth."

In support of Schumpter’s view, there are a several innovations that took place in crises to highlight:

• The Long Depression (1873-1896) — saw a host of inventions: the incandescent bulb, compression ignition engine, the radio, steam turbine, refrigeration. The world's first moving picture film was recorded in Yorkshire in 1888.
• The Great Depression (1929 to 1939), was considered a technological golden age: the automobile, aviation, telephone and the electric power transmission grid were further developed, deployed and adopted. In 1936 the world's first regular public television broadcasts began from Alexandra Palace, North London by the BBC.
• World War 2 brought pressurised cabins, jet engines, synthetic rubber and oil, radar, penicillin, and nuclear power. In 1943 the world's first electronic computer was built and used for the remainder of the war at Bletchley Park. It is estimated that this work shortened the war by two to four years.The need to accelerate change was immediate.
• The Financial crisis (2007-2008) accelerated the introduction of cryptocurrency and blockchain. Flash memory, Android and the first highway legal all electric car became a reality.

The above are just a few examples, reinforcing that in moments of crisis whilst negativity can exist there is a real opportunity to respond creatively.

Not if but when

Some of the change we are experiencing at the moment is an acceleration of change that was already happening; working from home, flexible working, online shopping, online banking, cashless payments - the only difference is that the speed of this change has been turbocharged. It was not a question of if but when the change would happen.

Other changes have occurred as a direct response to COVID-19, such as distancing sensors on construction sites, and digital tracing of viral transmission, for example. No doubt further innovation and invention will continue to emerge in the future.

A focused look at the built environment highlights that the pace of change within the sector has been slow. In Reinventing construction through a productivity revolution, a report published by McKinsey Global Institute in February 2107, the authors state that ‘construction is among the least digitised sectors in the world, according to . In the United States, construction comes second to last, and in Europe it is in last position on the index.’

Although a lot of great work has taken place in recent years, we still have much more to do. A survey earlier in 2020 of over 350 RICS members on technology highlighted that less than 50 per cent feel they have the skills to fully embrace technology, just over 50 per cent feel they have a good understanding of technology and work for companies who have a digital strategy in place. On a positive note, 98 per cent see technology as an opportunity. In summary, the acceptance of technology is there, the skills and adoption are not.

Since March, many businesses in the built environment sector have had to give additional focus to three key operational issues:

• Technology infrastructure - Can staff operate effectively while work remotely? Do they have access to IT hardware to do their job, and is there adequate security and broadband in place? Staff who normally work from home have had time to establish a home office. In contrast, the speed at which lockdown was announced made it difficult for some companies to ensure they maintained business continuity, leading to disruption and loss of earnings.
• Support issues - Working from home has both positives and negatives. I have spoken to many people who find working from home uncomfortable and they struggle with the sense of isolation, which can create anxiety as well. There are wider issues than this such as how younger members of staff are supported and trained – all of which needs to be considered by businesses and steps taken to address. Businesses are responding in lots of creative ways.
• Digital solutions to deliver services - I have spoken to many business leaders within the built environment since March to get a sense of how they are coping, and responding to requests for advice. What is clear is the differences that exist across the sector on digitisation. Those with a digital strategy in place and existing established technology spoke positively about their ability to respond to the challenges. Others who operate more traditionally found it more challenging and felt in retrospect that they possibly should have done something sooner. Everyone I spoke to looked at this period as a huge learning curve that has pushed them to reposition the business so that they can emerge stronger in the future. They were clear on the need to either review their existing digital strategy or create one where it was not in place.

Digital Strategy .... where to start

The key points, that I would suggest should be considered as part of a digital strategy, are:

• It’s not purely about IT or involving just a few staff, it is something that should be at the core of any business, with all staff aware and engaged.
• It must focus on business transformation and the direction of travel, start with the end in mind and everything that needs to be in place to make this happen.
• Look to maximise the value of the services you provide to your clients. This in turn helps you create long-term relationships and grow your business. Ask customers what they would like – the best surveying solutions I created in my career were informed by conversations with clients regarding their processes and how they use or would like to use data.
• Improve efficiency and productivity, while at the same time aiming to improve quality.
• Increase the value and usability of data, by providing it in an easily digestible format that enable evidence-based decisions to be made and explore the benefit of business intelligence.
• Ensure you have technology in place that can maximise your ability to deliver the above, to help with this produce a scope of what you require and consider using the MoSCoW (Must have, Should have, Could have, Won’t have) prioritisation method.
• Once you have the technology in place, commit time to training and accept mistakes will happen. If you do not do this the business will struggle.
• Operate with flexibility and respond swiftly.
• Always review and look for better ways to do things. Improvement never ends.

All those who operate within the built environment have had to respond swiftly to COVID-19 to ensure business continuity. This change has reinforced that the adoption of technology is more critical than ever, the pace of change has significantly increased and there will not be a return to ‘business as usual’.

"the adoption of technology is more critical than ever, the pace of change has significantly increased and there will not be a return to ‘business as usual’."

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Updated from an article published on the News and Opinion section of RICS Website on 10 June 2020.