COVID-19: The recovery of organizations and supply chains

Given the complexity of the pandemic, there is reason to believe that the recovery phase will require unprecedented levels of orchestration and coordination during a challenging and potentially protracted recovery period. Planning for this recovery now—even under uncertainty as the crisis continues to unfold—will be repaid in more precise and considered actions, and a stronger bounce back. Furthermore, the actions that a company takes during this recovery period can set the foundation for sustained growth and performance long after the pandemic is over.

Topics covered in this article:

• Shifting from central command to central orchestration. Questions organizations should ask to anticipate and plan for the pivot from a response to a recovery-oriented position. Most companies established a crisis management center during the response phase to assess the immediate impacts and provide direction and information to people, customers, suppliers, and broader ecosystem partners about immediate actions to mitigate risks. However, resilient organizations go further and look for clues about how and when the recovery will take place and establish flexible plans for the recovery period. As a result, in anticipation of the recovery, the role of the centre will change and evolve, from a directive-oriented crisis command centre to an enablement-focused orchestration role.
  
• Monitoring for signals of the economic rebound. Indicators to be tracked to provide the clearest picture of the rebound timing, and the most likely progression back to a normal economic environment. While there is still a lot of uncertainty regarding the COVID-19 pandemic, a likely scenario is a V-shaped trend where a sudden economic slump is followed by a sharp rebound. Economists are largely in agreement that the rebound will start in the second half of the year but are currently divided on whether the recovery will begin in the third or last quarter. Recent announcements of coordinated monetary and fiscal stimulus are making this V-shaped outcome more probable.
• Cross-functional & cross enterprise orchestration and integration. Recommended actions for companies to take during the turbulent recovery period that will be essential for long-term success. Leading an organization through the rebound, when there will still be uncertainty and concerns over the health and safety of people, will be challenging. In addition, restarting complex global supply chains that have been impacted by both demand-side shocks and supply-side disruptions will not be easy. For organizations to plan and execute well in the upcoming recovery phase, unprecedented internal cross functional collaboration and external coordination across the extended supply chain and ecosystem must happen. The pivot that organizations must make, in shifting attention and resources from response to recovery, is across all management dimensions of this crisis—risk and financial management, people, customer, and supply chain. Technology will play a key role in enabling collaboration and coordination, supporting business leaders in the planning and execution of their actions, and ensuring systems and data remain secure and stable across all areas of the business during this transitionary period.
• Preparing for the “new normal.” The COVID-19 crisis is likely to accelerate fundamental and structural changes that were inevitable. How will your company evolve to meet the challenge of the next unexpected global crisis? It’s important to remember that we have faced crises like this in the past and will face them again in the future. In moments of uncertainty and concern, it’s not only about what leaders of organizations do, but equally important, how they do it that matters. With clarity and resolve, the most resilient organizations will put the immediate mission first. They will stabilize the situation by taking decisive action and prioritize speed over elegance. Yet at the same time, they will provide the kind of leadership and vision that the moment demands by creating a narrative of a clear path forward and embracing the long view. Even in moments of disarray, effective leaders never lose sight of opportunities that lie on the next horizon.
  

This article was produced originally by Deloitte Canada.