What We're Hearing. What We Know. How to Proceed.

A look ahead with Nick Pournader, CEO P&C

I want to share with you what we are experiencing at P&C—neither to boast nor complain—but rather to give our perspective on the issues of physical health and the global economy. The days of wondering whether the effects of the COVID-19 pandemic are short-term are over. So too are the days of figuring out temporary cost mitigation steps for our clients and the notion that social distancing is a temporary inconvenience. The furloughs and permanent headcount reductions have been determined (if not already implemented), the store closures identified, the airline capacity reductions and route cancellations announced, and salary reductions across many other organizations determined. Pretty grim—we agree. While absolutely jaw dropping, that work is complete and behind us. 

Internally, we have adopted the sage crisis management protocol of one of our clients—a 65-billion-dollar conglomerate founded in 1656. It is a simple, yet enduring code of behavior that has served them through the Russian Revolution, World Wars I and II, and the Spanish Flu pandemic: 1) Do Not Panic, 2) Be the Grace Under Fire, 3) Focus on Employees First, 4) Safeguard and Protect Critical Supply Chain Components, and 5) Preserve Cash without Dishonor. We believe this serves as a valuable construct for most businesses.

For our clients, we have now pivoted to what must be done for them to effectively operate when the doors open again. What is the road ahead? How do we get back to ‘normal’? Our perspective, putting aside conventional media, is that clients are focused on understanding and preparing for the impact on their businesses and how they must operate moving forward. How do luxury retailers open their doors and effectively manage social distancing while delivering on their brand promises to loyal patrons? How do airlines increase capacity and manage passenger seating, coveted loyalty programs, and the complex entitlement levels associated with those programs? How do major law firms welcome their employees back to their offices while managing distancing requirements and the physical health and wellbeing of their employees and clients? And, what new potential does this landscape hold for private equity firms, their portfolio holdings, and new blue ocean opportunities created by the pandemic?

More than ever, our clients are relying on the talent, expertise, creativity, and experience of our Strategy & Innovation, Data Sciences, Performance Management, and Organization teams to help them map their course of action in response to the pandemic and the challenges and opportunities that lie ahead. To guide and inform the many complex decisions that our clients face, we have engaged with the health authorities in countries that have faced epidemics and effectively contained this pandemic’s impact on their shores, specifically Singapore, South Korea, Taiwan, and France. That’s why we have formed working panels—comprised of our clients’ senior leaders, infectious disease experts and technology specialists from these specific health authorities—to enable direct, focused communications that leverage the best insights to inform our recommendations and the clients’ decision-making processes.

We have had to reconsider how we advise our clients during a time of limited visibility and so much misinformation. Among other things, we must triple vet everything. The research and containment guidance associated with this pandemic is new and unproven when applied to the culture and practices in Western democracies. Furthermore, traditional sources of national pandemic and emergency response have become highly politicized in some countries—requiring us to focus elsewhere for exact, insightful, research-based knowledge. We recognize, and are humbled by, the fact that our clients look to P&C as one of their trusted advisors and we take that responsibility seriously.

Looking ahead, we will stand with our clients as they enter this new and tenuous reality and, together, we will prepare for the days to come and the new normal.  

On behalf of our entire organization, we thank you for your trust and the privilege of your business.

Sincerely,

Nick Pournader