Managing a business has become more challenging as COVID-19 took over the economies of nearly all countries around the world. Only a few mitigated the worst effects of the pandemic. Even in the “less affected” countries, it has become difficult to go back to doing business as usual.

Many cities have already started reopening their businesses, but these don’t mean a return to the old normal. To cope with the health crisis, businesses need to implement necessary modifications. McKinsey & Company partners Kevin Sneader and Shubham Singhal cite five major changes businesses have to deal with after the pandemic.

These are greater government intervention, the switch to a contact-free economy, the need for greater resilience, the return of protectionism, and more business scrutiny. “The implication is that companies will have to rethink, not tweak, their business models,” Sneader and Singhal write in a commentary published on the McKinsey website.

In light of these points, it makes sense for businesses to work on developing better strategies, adopt suitable workforce arrangements, and be mindful of regulations and meticulous scrutiny. Managers need to be more dynamic and ingenious as they face the challenges of the new normal.

Strategy building

With all the community quarantines and the need for physical distancing, almost all businesses have to reconsider their strategies. A new feasibility study may be in order, considering how the pandemic has significantly disrupted markets and economic conditions.

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An article by Michael Wade and Heidi Bjerkan on the MIT Sloan Management Review lists three strategies companies will have to use in response to COVID-19, summed up as follows:

Same products, different channels – This is what most companies resort to in the midst of a pandemic. They digitalise and sell their products online and through other means as they are forced to suspend their brick-and-mortar operations.
Same infrastructure, different products – Under this strategy, companies that suffer from the underutilisation of their factory capacity, for example, switch to manufacturing other products that are more in demand.
Same products, different infrastructure – This strategy applies to companies that tend to benefit from demand surges during the pandemic. They need to raise their production capacity and augment their infrastructure to meet existing demand.

Sticking to the status quo is out of the question for going-concern businesses. However, it’s not enough to be merely reactive. Wade and Bjerkan share a useful decision tree for businesses affected by the pandemic.

In summary, a struggling business faced with two questions: (1) is it possible to offer products/services online and (2) is it possible to acquire infrastructure to expand production. If the answer to the first question is negative, the logical course of action is to look for alternative products to produce or sell to make use of existing capacities.

If it’s not possible to switch to a new business, only then will loss mitigation (read: giving up) be considered. The decision tree does not consider succumbing to difficulties without taking into account all possible solutions.

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Workforce management

Another key area companies have to look into is human resource management. By now, it’s clear that businesses should shift to remote work arrangements as much as possible. Not every job is compatible with telecommuting, but many can be shifted to telework setups not only to comply with compulsory physical store/office shutdowns but also to reduce operating costs.

Remote work management, however, is far from easy. It’s already challenging to supervise employees personally; it’s even more difficult to oversee their work from a distance. The shift is bound to create inefficiencies and problems first before things normalize.

Managers need to be creative and resourceful in helping employees deliver their optimum performance. They need to provide adequate orientation or training. Likewise, they have to supply suitable productivity tools such as task managers and schedule-makers to help employees stay on track and avoid procrastinating or succumbing to distractions at home.

The inability to stick to schedules is one of the biggest obstacles in successful telecommuting. The management should provide all the necessary support to avoid serious issues with it. “With nobody managing your time but yourself, it’s easy to get distracted when these challenges appear in your life,” says Amber Baldwin, founder of StoryChasing.

The same acclimatisation challenges emerge if a business reorganises its infrastructure or switches to new products or services. Employees need proper orientation, guidance, and supervision as they adapt to new systems or scales of operation.

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For other companies, retrenchment will, unfortunately, be inevitable if they cannot come up with new plans or strategies to make use of their existing human resource pool. This will be another major management headache that should be dealt with prudently.

Regulation and scrutiny

Regulatory policies are external concerns that significantly impact businesses during the pandemic. They will continue to affect company operations even after the lifting of the lockdowns. Companies cannot shrug off new policies or rules, lest they risk the possibility of getting shut down by law enforcement agencies.

Physical stores must fully implement social distancing measures according to the directives of local and national authorities. Limits on the number of customers allowed in a building should be observed. Also, companies should adhere to pricing guidelines and product quality standards. Close coordination with regulatory agencies is a must to avoid legal and regulatory issues.

It’s not only the government that will evaluate the actions of businesses. Customers or the public, in general, will also be watchful for violations and questionable actions. The pandemic and recession are big enough problems. It’s totally unnecessary to get involved in more especially when it comes to laws and business ethics.

Optimism in improving management

Strategy rethinking, employee management, and the response to regulation and scrutiny may entail significant or even radical changes. However, it’s better to think of these as a chance to strengthen the resilience of the business, test its flexibility, and take advantage of opportunities. Asians are generally resilient and optimistic businesspeople. As Jack Ma said: “Try to change, nothing bad can happen.”

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