Three pearls of wisdom from 2020

Everyone wishes 2020 to be over and done with - and, quite frankly, I don’t blame them. In fact, I wholeheartedly agree. However, as we move to 2021, I expect life will continue to feel uncertain and our confidence will remain subdued until an affordable and trusted vaccine is proven effective and is widely distributed.

As we stand on the brink of what may be one of the most turbulent, chaotic but consequential and defining twelve months, I’ve been pondering what are some of the key lessons we can draw in business and the world at large.

Here are my 3 pearls of wisdom derived from the 2020 experience . . . on a macro, business and personal level.

1.   On a broader level, the realization that the world is small, science matters and global problems demand global initiatives

Undoubtedly this year has once again highlighted how interconnected, interrelated, and interlinked we are – whether we like it, or not. We’ve seen it in movies, read it in articles and books and have known it all along conceptually but we’ve never experienced it first-hand. It was astonishing to see pictures and hear people from all corners of the world experience and worry about the same issue at the same time.  The entire world shut down!

• We must listen to the experts, the scientists in this case, and follow their advice and guidelines. In a pandemic where one’s actions may impact adversely so many other people there has been a growing awareness that personal freedoms must take a back seat to what is best for all. We are in this all together, not alone.
• We need more concerted action from the world community, more funding – not less – to global institutions to tackle world problems and present timely solutions.
• In the introduction of vaccines within 12 months from the appearance of the virus, we have witnessed one of the greatest successes of the scientific community.

A monumental achievement spearheaded by the cooperation of scientists, governments, and non-profit institutions around the world.

Collaboration will be the way forward to tackle global problems in the 21st century.

2.   On a business level, we will continue to require a flexible budgeting process

Every crisis provides leaders with a chance to reexamine how it was handled and what changes are needed for the future. But are you ready to start looking ahead, take control of what you can and create a new financial and business budget for 2021? Agile, and flexible leadership is key to survival and success in times of crisis.

Specifically:

• Ensure your 2021 budget is as dynamic as possible given the realities of your industry. Flexible goals and strategies can help stabilize your business if the economic crisis worsens before it improves. And if your organization is multi-industry and multi-country, ‘one size does not fit all’! Assumptions and projections must be specific to the realities of the various markets and geographies in which you operate.
• Constantly reforecast and recalibrate your initiatives as the future unfolds. What we found very useful is a rolling 12-month budget that is reviewed and updated monthly based on our actual results and our new projections.
• Create contingency plans and prepare and implement practically executable road-maps to quickly course correct as necessary.
• Adapt your product/service to align with the changing buying behaviors. The need to enhance customer experience has never been more important. As a CFO, it ‘hurts’ to write this but as we budget, we need to flip the conversation from being about cost cuts and efficiencies to being about investing in customer experience to drive revenue.
• Manage your Balance Sheet. Keep inventories and accounts receivable clean, don’t let debt get out of control and most importantly build and preserve cash reserves. ‘Cash is King’ is always true but more so in times of uncertainty. Managing liquidity should be a priority. Heading into 2021, be very selective about your investment and capital expenditure initiatives.

3.   On a personal level, the power of reflection is becoming a leadership necessity

As we near the end of a strange and challenging year, where we were asked to avoid gatherings, and socially distancing rules became the norm, maybe, we should take advantage of this ‘imposed isolation’ to pause, reflect and meditate. 

• For those of us who are not used to meditation and reflection, at first this will feel and look weird . . . In this manic world we live in where we spend our days just running from moment to moment; where telecom companies ensured we are equipped with ringing, blinking and buzzing devices so that are ‘connected’ 24/7, we simply don’t have the time and the peace of mind to stop and smell the roses. Sometimes we wonder if we can get the rose scent in a take away package. 
• Although it may be extremely difficult to find the uninterrupted time needed to meditate and reflect, as leaders we must. The skills of effective leaders such as – empathy, emotional intelligence, active listening, creative and analytical thinking – are challenged and potentially compromised when we are under stress or in a crisis such as the one we are currently experiencing.  We are more likely to get stuck in worst-case scenario thinking when at this very moment we need the full capacity of our brain to evaluate the facts, the assumptions, and come up with creative solutions to reassure our stakeholders.

These three practices worked for me:

1. Morning meditation – very early, before the phone starts to ring and before I dive into the e mails that came overnight that would pull me into a fire-fighting reactive mode and spoil the ‘clean canvas’ of my thoughts for the new day – with a rested and fresh body and mind, and after a cup of coffee, I just sit for a few moments, in peace and quiet and shut down all distractions. This should become a daily habit and it takes time to practice and the more you put into it the more you get. Over time you will recognize that your day starts with an awareness for possibilities that you would otherwise not have seen. I recommend for the beginners to follow on-line simple and easy guided practices to get you started. Meditation will reduce stress and anxiety while it will increase focus and mindfulness – the ability to choose how to act as opposed to just react in a given situation/moment in time.
2. Spend time outside and/or engage in physical activities – I find this extremely useful especially when I find myself in an unproductive thought process. Take a walk, or cycle, around your neighborhood ideally through a park or a green space. Clean your head and focus on your walk, the weather, the smells, and sounds. If you have any physical activities that you enjoy, it is easier to be mindful when you are doing something that requires the attention of the body and mind. For me this is running. I listen to my favorite music while I run, and I am in my zone. I can’t describe the feeling of euphoria after I finish my run routine!

3. Spend time with creative hobbies – You need an outlet, a platform to unleash and unload your creativity. Let yourself be in the moment of creation. For me this is drawing, creating photo albums, building Lego structures (embarrassingly yes! still works for me) and, recently, writing these short articles. 

I found that these few practices help me reflect, draw learnings from the past and prepare me to better tackle the problems and find creative and appropriate solutions for that day and the weeks that follow. To reach our potential as leaders, it is imperative that we carve out time for reflection, for self-review, for insights . . . 

A lot can happen in a year and between the good, the bad, and the ugly, 2020 has outperformed most years. It seems like everything was turned upside down. Your business and personal plans have probably taken an unexpected detour. If so, you’re not alone. Maybe this was not the year we got everything we wanted. Maybe this was not the year that we travelled where we wanted. But this year gave us a rare opportunity to appreciate what we have and what is really dear to us: Health and Time.

Wishing you a Happy, Healthy and Prosperous New Year. Hope we get this one right on a personal, business, and global level!