COVID-19 THROUGH THE LENS OF DISRUPTION

The COVID-19 crisis has demonstrated clearly the central economic reality of our times:

DISRUPTION IS THE NEW
ECONOMIC DRIVER

In recent years, cycles of disruption, which displace existing businesses, markets, and value networks in favor of newer models and relationships, are occurring more frequently and with greater impact. They have emerged as both the main force in the economy and the central strategic challenge for business leaders.

Leveraging our 40 years of helping companies confront disruption, AlixPartners embarked last year on a study of disruption, its impact on business, and how corporations were responding. However, few could have predicted the massive disruption that COVID-19 would cause. This crisis demonstrates how a single disruptive event can have a reverberating and amplifying effect across geographies, industries, and supply chains.

AlixPartners Disruption Insights identifies strategic priorities and tactics that successful businesses are employing to survive—and thrive—in the midst of ongoing disruption cycles. Complete the form at right to download our new analysis, "COVID-19 through the lens of disruption." 

What does COVID-19 mean?

It is still early to begin making long-term predictions. Indeed, while we would like to think we’re at the beginning of the end of the current crisis, it’s more likely that we are only at the end of the beginning. And we must remain cautious against the cognitive bias to weigh recent data more heavily than historical ones. 

That said, our report includes a few educated hypotheses on likely outcomes, covering deglobalization, supply chain management, technological disruption and changing consumer priorities.  For each, we discuss what companies can do to effectively manage through disruption.

Stakeholder Management in a COVID-19 affected world

Faced with this uncertain and fluid environment, what should you be doing?

First, to determine where you need to go, you must establish where you are. AlixPartners has developed a framework for understanding the expectations of critical stakeholders during each phase of this crisis and reopening. We look at five key stakeholder groups—employees, investors, supply chain, customers, and society. We examine different stages of capabilities, emotional state and needs for each group. Then, we provide actionable ideas for how to address and engage stakeholders based on your organization's position. Download the stakeholder management framework with the full analysis using the form at right.

Three focus areas form a foundation for action 

If you cannot transform now, you never will.  There are three foundational actions covered in the report:

1. Establish adaptive culture, leadership and tools:  This crisis has demonstrated the singular importance of execution and adaptability in the face of rapid change. Those companies that responded to this crisis by quickly establishing health and safety protocols to protect their workers and customers, that shifted suppliers when established chains broke down, and that successfully found new routes to market and engagement with customers are best positioned to emerge from this crisis.
2. Proactively prepare for an altered future:  The COVID-19 crisis has dramatically accelerated disruptive trends that were coming at a fast but manageable pace. Virtualization, automation, digitization, real estate strategy and design, and cybersecurity, among others, have all jumped forward. The crisis may have decelerated some trends, as well, like the sharing economy and fully autonomous vehicles.
3. Live your values: As we begin to emerge from the COVID-19 crisis, how you prepare for and treat employees and customers will have profound implications for your brand going forward. All businesses are, of course, anxious to return to a stable normalcy, even if it’s profoundly altered. However, a rush to prematurely ramp up operations before either external conditions or internal processes are prepared would be a mistake.

AlixPartners Disruption Insights identifies strategic priorities and tactics that successful businesses are employing to survive—and thrive—in the midst of ongoing disruption cycles. Complete the form to download the full analysis and the stakeholder management framework.