Covid-19 is what’s known as a black swan event—something both unexpected and extreme relative to historical norms.
Market is flooded with lot of webinars for strategies and ideas. It feels like last 100 years management rules and gyaan is coming forefront in one form or the other. Everyone is estimating what the world be like after covid, how the market will react, demand forecasts.
However, critical point is that demand forecasts that underpin your business could be wrong for at least the next 3 to 12 months. The consulting industry which had many key management principles of Strategic, Tactic and Operational Models. Strategic Models like BCG matrix, Blue ocean strategy, Competitive analysis: Porter’s five forces, Scenario-planning, SWOT analysis. Operational Models like 6 Sigma, Sevens S, Discounted Cash Flow Model, Balanced Score Card, Philip Kotler 5ps of Marketing, Benchmarking, Performance Management, Value Chain Mapping, HR Transformation.
Their application of management principles has worked differently for different industries in different era’s. In 90’s the era was of Blue of Ocean Strategy and Six Sigma, In next decade the era was of Branding and HR Transformation. In current Decade it is all about Artificial Intelligence and Data Analytics. So this time which management principle has to be priority for Entrepreneurs of SME’s. This kind of time comes once in century where all possible forecasts, strategy, thinking may fail as the world is not what it was.
The SME’s have not looked beyond Product Innovation in their journey. We need to understand innovation from Different perspectives. Innovation strategies are neither promoted or applied in SME’s DNA properly. Consultants applied Management principle in a non-structured manner and stereotypically in every organization without understanding long term implications of same.
Certainly, Companies that will succeed are adaptable and innovative—at scale. Those characteristics are human-centred. And they are particularly valuable during recessions. According to The Economist, in a recent report on the short-term future of commerce, “ingenuity, not just financial muscle, will become a source of advantage, allowing cleverer firms to operate closer to full speed.”
Innovation can be in different functions of business Distribution Innovation, Technology Innovation, Product Innovation, Customer Innovation, Employee Innovation, Finance Innovation. These innovations can be process oriented, incremental or disruptive. Every time the war like situation, Global Depression, US Depression 2008 has created new industries and markets altogether.
Challenging Times are also Opportunities to Improve Your Innovation Model Periods of disruption highlight existing challenges for companies. Management should safeguard the business while anticipating business trends, quickly addressing volatility and proactively establishing long term financial and operational resilience across the business.
The above principles are also some of the tools which will help companies to understand macro points and coordinate the resources easily. But all the organization within the same industry will have to implement customized solutions. Management Consultants also cannot apply management principles to the industries without understanding its DNA, Cutlure and Objectives.
Management of Technology, Finance & Business is not required by true consultant or companies but Innovation on all of that aspects are required for better business resilience and survival. Adaptability to Invention by any organization will be the most critical factor in surviving them.