COVID Response: Pivot, Not Panic
If I were to play word association using “pivot” months ago, I would have shouted dance, not excel, and certainly not business strategy. However, after months of seeing this word being used along-side current business situations, I think I will be wired differently now.
Industries and businesses are affected by the COVID pandemic differently, more so for start-ups at different stages of growth. It was a privilege to spend some time with Andrew Mawikere, CEO and Co-Founder of Bizzy Indonesia (provider of an integrated digital platform for supply chain services) to understand how start-up businesses have been impacted during this period. (view the full interview transcript at: https://medium.com/@EMASingapore/emasks-ceo-of-bizzy-indonesia-d77bc159c2a5)
Opportunity amid Adversity
That is basically what it means to pivot. If you wallow in your sorrows, you get swallowed in your burrows (all rights to this line mine!). Who would have thought commercial airlines re-configuring to offer cargo flights, fitness centres pushing out workouts online, Michelin star restaurants offering home deliveries and from my earlier post (https://www.dhirubhai.net/pulse/covid-1-versus-ecommerce-morgan-wee/?trackingId=NNBwFeB9TD6s24S%2FjvYzUA%3D%3D), how a company with all their retail shops shut down moved their beauty consultants online to become beauty advisors to engage their customers digitally.
With the COVID situation brewing, Andrew saw a drop in the number of customers as several retail shops shut in tandem to reduced business due to many of their customers moving online for their needs. However, the consumer demand is very much intact and the scenario played out to more revenue for those retail shops who remained open. Andrew focused on these customers to grow their purchase basket by 30%.
In a way, Andrew found his pivot by taking the opportunity to maximize the value proposition of his solution (social-distance-friendly and more product selection) amid a difficult business environment.
Fast. Relevant. Monetize.
As with all things, having an intent is not good enough, it boils down to execution. In Andrew’s very quotable action plan, one has to remember three words: fast, relevant, and monetize.
Many start-ups are highly sensitive to changes to revenue streams as they may not have shored up enough in their coffers for rainy days, and especially when stormy days turn into months without end.
Andrew took to higher grounds long before the tide hit the shore. He turned on his survival mode way before his government acted, addressing his operation cost, moving his team to work from home, and studying the change in demand from his customers. He was clear that things needed changed and changed fast, he adapted to ensure that his business will be around when the tide turns. He rationalized that by making the painful re-directions and cuts fast, he will survive and remain relevant to his clients. And because he survived, remained relevant, he has the momentum to monetize his newly gained directions.
Ownership
So you pivoted, and then you acted fast, stayed relevant to your clients, and then you want to come home with the honey pot. You still need the element of talent in your organization to help you execute all these before the rainbow breaks out. I asked Andrew what is the one thing he looks for in hiring talents and he offered the word “ownership”.
I am sure we have had colleagues now or in the past who are great at getting their things done. However, some need to be told what to do, how to do and when to do them. Some just want to get a piece of work across the line, never mind the completeness nor the quality. Some will not care how that piece of work will affect the other departments or the company.
In the current business environment when there are more moving parts and the need to react is high, if everyone “owns up” to their share of work and make it an obligation to the team and the organization to take initiative, be accountable and do right; together, the organization can then be fast, remain relevant and be in a good financial state.