he pandemic alone, with its devastating consequences, would be enough for 2020 to go down in history as a turning point for the world. And considering the geopolitical, societal, and economic tensions that existed long before and which COVID-19 is further exacerbating, it is hardly surprising for this year to be referred to by some as “annus horribilis.” Global cooperation is being tested as nations try to deal with the novel coronavirus, while mounting tensions abound in international relationships and around important issues such as racial injustice, the refugee crisis, and climate. These exceptionally difficult times require us to rethink how we can emerge stronger and how each actor—in government, the private sector, and civil society—can expedite solutions for the world’s most pressing issues.
Following our last global crisis, the great recession of 2008, an analysis conducted by McKinsey showed that the small group of companies that proved resilient and outperformed their peers stood out for their preparation before the crisis (mostly via strong balance sheets) and their effective action during it—specifically, their ability to cut operating costs.
As COO of a multinational company, I can tell you, no one anticipated COVID-19 nor its impact on the world. The virus has turned the world on its head, and when we look back to 2020 in 10 years—and we will—I believe we’ll find that financial strength that proved invaluable in 2008 was but a fraction of what was required for companies to survive and prosper.
In the post-COVID-19 era, the first line of defense for companies committed to sustainability is the focus on sustaining their employees, their families, and the community. It is this ability to think and act with all stakeholders in mind that will build resilient and engaged organizations. Businesses that will thrive in the long term will be the ones that act upon the realization that there’s no success to be had in a world mired in inequalities or in a deteriorating natural environment.
The rationale and framework for businesses to do their part in helping build a more sustainable future has already been very well articulated, in the context of the UN Sustainable Development Goals and beyond. And while there’s a concern that the devastating impact of the global pandemic could hinder these efforts, this unprecedented year can become a catalyst for more—and faster—progress. Businesses and governments are being forced to relook at resources and review short- and long-term goals. In doing so, we need to prioritize our collective future.
The pandemic has fundamentally changed our notion of what is immutable. Globalized supply chains, travel, and other former “norms” are far from guaranteed in a post-COVID-19 world. Against this backdrop, organizations of all types and sizes have had to focus on what’s critical—first and foremost to support the well-being of their people and the communities in which they operate, while maintaining business continuity. Remaining laser-focused on what matters most is crucial, especially when business leaders are called to make decisions quickly and under extreme levels of uncertainty.
We have magnificent tools within our reach to develop and implement solutions to the most pressing issues. Recent decades have brought a raft of scientific and technological wonders. From nanotechnology and 3D printers to advanced knowledge of the human body and the still nascent field of AI—to name a few. And yet, for all that promise, we’ve often failed to harness this collective ingenuity to do better for all. It’s clear that only when we commit to making full and responsible use of all we have that we will be able to rebalance the scales and prioritize the economic, social, and environmental well-being of the world.
My fear, though, is that this global pandemic and the so-called “triple crisis” will not be solved without true collaboration by all relevant stakeholders—by governments, scientists, businesses, NGOs, and individuals working in unison and toward a common goal of widespread economic, environmental, and social well-being. To achieve this, many hatchets will need to be buried. Now is not the time for unilateral action. If anyone doubted last December just how intertwined our new world is, I suspect they’ve found the recent evidence hard to ignore. What happens in China is felt in Italy. What happens in Italy is felt in the United States. That holds true for highly contagious viruses and for economic, environmental, and social malaise.
This need to refocus on what is essential has accentuated the importance of having a clear corporate purpose and a deep understanding of how the organization creates value for all stakeholders, not just shareholders.
Of course, the value of recognizing what’s essential and sticking to it has been demonstrated long before these trying times, with data indicating that businesses with a strong and clear purpose outperform their competitors. Re-embracing the essential has helped write some of the best business transformation stories, often by companies that had to break with their past to move forward.
We all hope we won’t face anything of this nature again—but, unfortunately, we know we will. It needn’t be our undoing, however. Now is the time to reset, reposition, and rethink what we want our future to look like and rediscover our ability as humans to work together for better. If we get this right, we can look forward to a time we’ll be able to call our “annus mirabilis.”
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Shifting Our Thinking: An Optimist’s View on 2020
Photo by Armand Khoury via Unsplash.
September 22, 2020
T
he pandemic alone, with its devastating consequences, would be enough for 2020 to go down in history as a turning point for the world. And considering the geopolitical, societal, and economic tensions that existed long before and which COVID-19 is further exacerbating, it is hardly surprising for this year to be referred to by some as “annus horribilis.” Global cooperation is being tested as nations try to deal with the novel coronavirus, while mounting tensions abound in international relationships and around important issues such as racial injustice, the refugee crisis, and climate. These exceptionally difficult times require us to rethink how we can emerge stronger and how each actor—in government, the private sector, and civil society—can expedite solutions for the world’s most pressing issues.
Following our last global crisis, the great recession of 2008, an analysis conducted by McKinsey showed that the small group of companies that proved resilient and outperformed their peers stood out for their preparation before the crisis (mostly via strong balance sheets) and their effective action during it—specifically, their ability to cut operating costs.
As COO of a multinational company, I can tell you, no one anticipated COVID-19 nor its impact on the world. The virus has turned the world on its head, and when we look back to 2020 in 10 years—and we will—I believe we’ll find that financial strength that proved invaluable in 2008 was but a fraction of what was required for companies to survive and prosper.
In the post-COVID-19 era, the first line of defense for companies committed to sustainability is the focus on sustaining their employees, their families, and the community. It is this ability to think and act with all stakeholders in mind that will build resilient and engaged organizations. Businesses that will thrive in the long term will be the ones that act upon the realization that there’s no success to be had in a world mired in inequalities or in a deteriorating natural environment.
The rationale and framework for businesses to do their part in helping build a more sustainable future has already been very well articulated, in the context of the UN Sustainable Development Goals and beyond. And while there’s a concern that the devastating impact of the global pandemic could hinder these efforts, this unprecedented year can become a catalyst for more—and faster—progress. Businesses and governments are being forced to relook at resources and review short- and long-term goals. In doing so, we need to prioritize our collective future.
The pandemic has fundamentally changed our notion of what is immutable. Globalized supply chains, travel, and other former “norms” are far from guaranteed in a post-COVID-19 world. Against this backdrop, organizations of all types and sizes have had to focus on what’s critical—first and foremost to support the well-being of their people and the communities in which they operate, while maintaining business continuity. Remaining laser-focused on what matters most is crucial, especially when business leaders are called to make decisions quickly and under extreme levels of uncertainty.
We have magnificent tools within our reach to develop and implement solutions to the most pressing issues. Recent decades have brought a raft of scientific and technological wonders. From nanotechnology and 3D printers to advanced knowledge of the human body and the still nascent field of AI—to name a few. And yet, for all that promise, we’ve often failed to harness this collective ingenuity to do better for all. It’s clear that only when we commit to making full and responsible use of all we have that we will be able to rebalance the scales and prioritize the economic, social, and environmental well-being of the world.
My fear, though, is that this global pandemic and the so-called “triple crisis” will not be solved without true collaboration by all relevant stakeholders—by governments, scientists, businesses, NGOs, and individuals working in unison and toward a common goal of widespread economic, environmental, and social well-being. To achieve this, many hatchets will need to be buried. Now is not the time for unilateral action. If anyone doubted last December just how intertwined our new world is, I suspect they’ve found the recent evidence hard to ignore. What happens in China is felt in Italy. What happens in Italy is felt in the United States. That holds true for highly contagious viruses and for economic, environmental, and social malaise.
This need to refocus on what is essential has accentuated the importance of having a clear corporate purpose and a deep understanding of how the organization creates value for all stakeholders, not just shareholders.
Of course, the value of recognizing what’s essential and sticking to it has been demonstrated long before these trying times, with data indicating that businesses with a strong and clear purpose outperform their competitors. Re-embracing the essential has helped write some of the best business transformation stories, often by companies that had to break with their past to move forward.
We all hope we won’t face anything of this nature again—but, unfortunately, we know we will. It needn’t be our undoing, however. Now is the time to reset, reposition, and rethink what we want our future to look like and rediscover our ability as humans to work together for better. If we get this right, we can look forward to a time we’ll be able to call our “annus mirabilis.”
