Lessons: Leveraging Crisis to Your Advantage

The little-known Greek philosopher, Heraclitus, is attributed to coning one of the most famous quotes of all time, saying, "The only constant is change." Heraclitus' words are still as relevant as they were then, especially in these unpredictable times that we find ourselves in. This openness to change with the evolving times –agility, is one of the hallmarks of success. In times of crisis, a business' ability to innovate and adapt is what sets it apart from those that go under.

2020 was one of the most challenging years we've faced in the past few decades. The advent and subsequent spread of the Coronavirus threatened our way of life and our humanity. Regardless of adversity, some businesses didn't just survive; they prospered. This isn't because they were spared the challenges of the year and had planned before. They knew how to reinvent themselves in light of the changes. This is why when some companies were filing for bankruptcies and downsizing their workforce, and closing shops, a company like Tesla made a profit of $331 million in the third quarter of 2020 when many countries were in the thick of lockdown. How about companies such as Airbnb that took a hit when the pandemic began but managed to turn their tides to profitability, all in the space of less than a year? This shows that no crisis can't be weathered and that tough times never last; tough people do.

Winners Innovate and Reinvent!

The outdated "safe" approach to business will not cut it during a crisis. Choosing to stay the same when times are changing is an even more significant risk than seeking reinvention. In the name of self-preservation, this rationale is not only myopic but inherently counterintuitive because it does not guarantee your business's survival. Playing it safe has its merits in some situations, no doubt. Without leaps of faith, you'll be mark timing in the same place for years, watching as newer businesses overtake you in droves.

The rate at which companies have been propelled into innovation shows that there has always been room for it; what lacked was motivation. Many of them have resulted in taking more significant risks than would have been imagined just a few months ago. Experts argue that the pandemic and the ripple effect it has caused have ignited a fire in business leaders to find fresh approaches to problem-solving. Most are going against the grain, dividing their focus between saving their current operations and venturing into new ones. 

What top companies did in other crises?

Even though the Coronavirus is a major crisis, we've experienced one among many over the years. Therefore, it is crucial to learn what some companies did when they were in hard-pressed situations. During the 2008 financial crisis, companies that invested in innovation outperformed the ones that didn't by 14% in subsequent years. How great is that? Those that made bold moves reaped the benefits of their bravado even after normalcy returned. Some examples included:

Disney- Started in 1929 during the great depression by bringing a new way of entertaining the masses.

Microsoft- Bill Gates and his associates created their first software during the lull of 1975 to offer companies effective digital solutions to improve communication.

Apple- Even after its slow start in the 70s, Apple made a comeback in the 2010s to produce one of the first smartphones amid skepticism from pundits and the dwindling dot-com bubble.

CNN- First of its kind in the US, 24-hour news channel ventured into an uncharted market hot on the heels of a recession in the 80s.

These businesses' growing success isn't to say that the journey is comfortable; there's a method to this madness. Innovation for innovation's sake is just as harmful as its absence. The leaps you take, although bold, should be measured and well informed. How should you innovate the right way? Well, there isn't a "right" way to do anything in business. There's no one-size-fits-all approach when it comes to making decisions for your businesses. These pointers could set you on the right track.

1. Don't be afraid to shake up how you work

Probably one of the biggest take-aways from 2020 is the work-from-home protocol. In a bid to keep their employees safe and productive during lockdowns, most companies shifted to remote work models. Bigger companies like Twitter and Facebook found remote work so rewarding and sustainable for the businesses that they've chosen to make it a part of their work plan indefinitely. To quote Jack Dorsey, Twitter's CEO, "We want employees to be able to work where they feel most creative and productive… Over the past several weeks, we've learned a lot about what it takes for people for people to perform roles outside an office effectively, and we will learn as we go."

Learn is the operating term here. No one was quite prepared to face the dizzying consequences the pandemic would bring. Even multi-million-dollar companies like Twitter that probably had some remote-work model in place are still trying to figure out how to best adapt it into their everyday operations. That is why you shouldn't give up if your remote work plan is less than ideal.

Don't limit your reinvention to just remote work. There may be other plans you've meant to effect but haven't gotten the chance through the years- this is the time. If you may not be operating at 100% capacity, don't take it as a bad thing. Use this time to pilot test ideas, run mini-rollouts, and do consumer testing for your new products and ideas so that when you bounce back, you know what works.

2. Think big, think digital

Digital transformation was at an all-time high last year, and it's not showing any signs of slowing down. To quote Satya Nadella, Microsoft CEO, "We've seen two years' worth of digital transformation in two months...". That was said when she was releasing statistics about the use of their virtual coloration tool, Microsoft Teams, explaining how it's user numbers had soared in the time since the pandemic broke out. Many businesses had adapted to the times by going digital to enable their survival in an increasingly remote world. A survey from a different company reinterred her remarks, showing that businesses' adoption of new technologies was years ahead of where they should have been, according to previous surveys.

These results show that companies were quick in their adoption of technology to keep themselves afloat. Another study showed that 80% of customer interactions in the businesses surveyed happened digitally. So, if you aim to survive this crisis (or any others that may erupt in the future), going digital is a surefire solution.

Digitizing your operations will go a long way in supporting your workforce as they operate remotely, keep your information safely stored, and boost your communication with your clientele.

3. Re-evaluate your priorities

Without properly laid down priorities, you'll feel like you're getting pulled in a thousand directions all at once, and chances are you'll snap under pressure. If you try being a jack of all trades in the middle of a crisis, you'll end up being a master of none. If you have an actionable plan, you can knock whatever curveballs life throws you out of the park.

Simultaneously, keep your goals aligned to your customers' needs and the changing environment you may be operating in. 

For example, Airbnb has so much to be learned from its response to this health crisis. Early 2020, when the pandemic hit, the company was poorly affected like others in the hospitality industry due to the travel restrictions. They had to fire several thousand employees as the occupancy on their rentals decreased. What they did next is what helped them wade through safely. In a few days, they had revamped their website to encourage their patrons to engage in virtual activities as they would have done if they were on holiday. Also, they moved from short-term rentals that targeted tourists to long-term rentals, akin to real estate agents, to encourage people to use their facilities to escape from crowded cities that are breeding grounds for the virus. The company evaluated the environment they were in, acknowledged that their model wasn't feasible in a pandemic-ridden world, and reinvented it to offer solutions focused on their client's needs.

You can also borrow a leaf from Airbnb's playbook. Be quick to assess and adapt so you can stay operational even when the crisis seems to be working against you.

The Takeaway

As long as you are alive and in business, you'll face challenges at some point or another. One fact is challenges offer a vista for reinvention, agility, and upward mobility that may bring you even higher levels of success than in the pre-crisis era.