In the pre-covid part of 2020 (seems an age ago!), the operating environment was already facing some headwinds with uninspiring economic growth and Brexit uncertainties. The near-universal and sudden recession triggered by the lockdown was a wrecking ball to businesses large and small. Our very way of life was flipped almost at the flip of a switch and mind-blowing changes to our very way of life seemed inevitable. Amidst sweeping proclamations about “the end of commuting,” “the demise of retail,” and “the collapse of globalization,” many executives came to assume that everything will change.
Accordingly, the recipe for survival is supposed to be a thorough transformation of the entire company — or else a collapse. The reality of how companies are dealing with the crisis and preparing for the recovery tells a very different story as Mauro F. Gullen, professor at Wharton School and HBR contributor explains.
He paints a picture of pivoting to business models conducive to short-term survival along with long-term resilience and growth. Pivoting is a lateral move that creates enough value for the customer and the firm to share.