Even after the corona virus pandemic, companies have to prepare for a world of recurring shocks and disruptions. Companies have to establish mechanisms to deal with shocks in their supply chains and to make quick adjustments in order to be successful under these conditions in the long term. Financial stability and flexibility of structures and processes are essential preconditions for this. Especially the central pathways of companies, like information flows, communication channels, E-2-E risk management, HR management and stakeholder alignment have to undergo a fundamental realignment.
What has to be done now
- Ensure credibility in leadership, communication and values at all times, and gain a competitive advantage in times of crisis
- Develop the ability to switch the management model in times of crisis. In times of crisis, a military style of leadership and a firm distribution of responsibilities is useful to remain capable of acting (subsidiarity), but in regular times a manager should take the role of a coach.
- Use the meaning of "High Impact Moments"
- Foster a diversity of characters and behaviors. Highly specialized and homogeneous teams are at a higher risk of failure in case of changes in the environment.
- Promote bold, innovative and risk-taking behavior even in a corporate culture dominated by efficiency
- Make constant change a key principle of your leadership
- Prioritize financial stability over stakeholder value
- Establish a strategic radar that enables you to identify, monitor and interpret developments outside the usual business
- Institutionalize E-2-E risk management throughout the supply chain. Think beyond your direct customers and suppliers.
- Intensify the cooperation with customers and suppliers. In crisis times, you can trust on well-established relationships with customers and suppliers.
- Initiate a paradigm shift towards a "Renaissance of buffers"
- Shorten the conversion time of E-2-E processes according to economic possibilities
- Establish a regular Strategic Realignment in your management system
- Optimize your communication loops with regard to speed, ownership and reliability across all levels of the organization
- Reduce bureaucracy in your organization by use of integrated IT systems
- Reduce the dependency of your business processes on location and specific staff. An integrated IT infrastructure and standardized processes make the short-term relocation of indirect business activities possible.
- Make the working environment flexible by means of IT infrastructure, licenses, tools, hardware, etc.
- Ensure complete transparency of your value chains in real time
- Interlink existing systems and technologies (devices, IT systems, locations, production units, etc.)
- Establish AI and machine learning to recognize developments along the entire supply chain early on (early watch/alert)
- Simulate changes in the supply chain using Digital Twins
- Allow Organizational Slack in know-how intensive areas to create space for adapting critical processes
- Expand the leadership competences of your organization by coaching, leadership in transformation, change management and team dynamics in order organize changes early on and without pressure
- Support the learning in your organization through effective competence management
- Increase problem-solving capacities for crisis situations through cross-qualification
ROI-EFESO has the right approaches and methods to prepare your organization for a world of recurring shocks and disruptions. We support you in establishing appropriate management systems, adapting your IT infrastructure, digitalizing your supply chain and building the necessary skills, competencies and culture for a more resilient organization.