Dr. Martin Mwanje Lwanga
As the Corona virus pandemic first took root there were many things that were not clear. A lot of what most business analyst put out was speculative. However three months into the cycle there are certain facts that are becoming quite clear. This therefore gives us a better starting point to talk how to manage for the future.
It is now no longer in doubt that all economies are going to contract, the extent of which will defer from nation to nation. This economic contraction will directly affect demand, meaning that the volume of business for most entities is going to suffer. In brief, almost every company needs to revise downwards it’s numbers.
That of course will clearly mean that expenditures has to go down in many areas. Any manager at this point ought to be examining which areas to slash expenses so as to remain viable. I would suggest that the core areas that bring in business are left untouched, while the peripheral ones depending on which business are scaled down. Look for those that can generate business and invest in them, while keeping your other overheads low.
At this stage we can also conclude that there are some industries that are going to be irreparably damaged. Take for instance commercial real estate office space. There is a definite shift of staff in many organizations moving to work from home. Previously it was speculative but with now having seen it is workable the word is that many staff are going to shift to work from home permanently.
There are a number of sectors most likely to be impacted here. First the commercial real estate will suffer and those in that business need to rethink how to convert such vacant spaces into something more relevant. Could these be turned into residential apartments in the long run! Either way having space no one is occupying begs a need to look for alternative answers.
Human Resources practices are also going to change with workers no longer physically seated in a bloc but dispersed out in their residence. Of course traditional roles of ensuring worker welfare will remain in place. But how when the worker is seated in his home comfortably. There will certainly be a greater pressure to show results as proof of work. How do you keep the workers engaged all day! Some new areas like building virtual motivated teams will have to be explored.
It is quite clear from everyone that the tourist industry will take some time to recover. Travel will pick up but not so fast due to social distancing norms. In the meantime the question is what will happen to all those who were dependent on foreign travelers, like tour and travel services. Here rethinking and adopting to new behavioral patterns is inevitable. Perhaps moving into cargo transport could help out in the meantime.
There are some industries that are immediate winners. As the smartphone plays a greater role in our lives those that provide data are clearly winners. ICT is going to impact our lives more than ever before as a medium of communication. There is therefore going to be mass investment by many companies in developing systems to leverage on data usage. This means companies need to sit down to see how to extract the best deals and service.
In education no one can deny online education is going to be a new normal. That means any teaching method where online education is not embedded is living on borrowed times. Every school at this point ought to be examining how to fuse online teaching within its curriculum, especially for adult learners who are more in control of their agenda.
If one has a shop that does not have on line order service and delivery such ought to change. With many customers working from home and needing services as expected the business that is equipped with online order systems and delivery to local address is the winner.
As offices open up and people get back to work it is going to be a changed world they will all find. The one who agrees and jumps at the opportunity to change is clearly the winner.
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