12 Rules for Corporate Survival During and After COVID-19
By: Bogdan Zadorozhny
Tags: Corporate Innovation, Business, Business Strategy, Freelancing, Freelance

As we enter approximately the third week of isolation due to the COVID-19 virus, we are beginning to understand the true extent of the impact of this large-scale epidemic on businesses and on the economy as a whole. Without a doubt, nearly every company has felt the impact of this unprecedented event and as the crisis continues to unfold, business managers are starting to ponder both how to adapt to the present situation and also how to mitigate their risk exposure for future events.

While hopefully the majority of us have stayed home and have stayed safe, the impossibility of continuing to conduct “business-as-usual” has become evident. Although many companies have been able to adapt to some extent by transitioning their employees to work-from-home (WFH) schedules, it is nevertheless the case that the present economic downturn has impacted company bottom lines in a great many industries.

Notably, the present pivot to WFH is a good first step at basic adaptation but is a surface-level move which is insufficient at comprehensively addressing the present situation. Due to shrinking client bases and the general slowdown of the global economy, many businesses have been unfortunately forced to make cutbacks to their staff in terms of headcount, working hours, and pay rates. Just recently, more than 6.5 million workers filed for unemployment in the United States, meaning that unemployment claims have been made by roughly 6% of the US workforce. More concerning is that the current crisis shows no immediate signs of abatement as global infection numbers continue to rapidly increase and consequently a return to normalcy may still be many months away.

As such, companies will likely need to make additional cuts in the near future in order to maintain profitability due to the projected downward trend of revenues. However, corporations of all sizes will also exhibit a continual reliance on skilled professionals to keep the lights on. In short, these two opposing factors of the need to reduce expenses while simultaneously maintaining a scalable ability to operate is where the central issue lies. At first blush, it seems that it is impossible to balance these two priorities, but as we shall explore later, there is a solution to this problem.

Put another way, it is simply not a feasible option for businesses to shut down all operations and to wait out the situation. This is especially true due to the high business competitiveness that is inherent to the modern global economy. In other words, companies, perhaps to a greater extent than ever before, need to remain competitive even when faced with deeply ambiguous times. As a matter of fact, despite the surface-level and seemingly self-evident negative impact of economic recessions on companies, a deeper analysis of historical economic disruptions reveals that these periods of uncertainty have also been successfully leveraged as opportunities for growth, expansion, and revitalization for some companies. Moreover, many of the most successful and well-known corporations today are the very same companies that managed to harness perilous economic periods as an opportunity to evolve and transform their modes of operation. Naturally, however, it is one thing to merely recognize this as a fact and quite another thing entirely to put into practice.

The concepts of risk adaptation and sustainability are highly familiar to me. For the last five-odd years, I have worked in the field of climate preparedness and through the process of conducting research in that area, I have taken part in thousands of conversations and have conducted hundreds of interviews with individuals that held senior responsibilities for ensuring that various municipalities, regions, and even nations are prepared and can withstand emergency events of a wide variety of different types. Put simply, these individuals have the incredibly important and rather Atlantean task of ensuring that when disasters strike, civilian populations are affected as little as possible and remain safe, healthy, and retain the ability to rapidly recover. One of the most central aspects of this is inherent in the phrase “when disasters strike,” rather than ‘if.’ The recognition of the fact that disaster events are inevitable and the resultant change of focus to impact mitigation rather than the futile task of attempting to prevent them, is one of the most important take-aways that I have learned during my entire career thus far.

In addition to working in disaster preparedness, I also have considerable experience in providing consulting services for companies which have ranged in size from tiny, one-man-shop startups to well-established enterprises. As anyone who knows me well can attest, it is my nature to speak my mind openly, and over the years I have consistently advocated for companies to aggressively pursue novel opportunities and have cautioned an innumerable number of times against the appealing instinct to simply embrace the status quo. Per my 2018 presentation that I prepared for a multi-billion dollar company:

“86% of the 1955 Fortune 500 companies have [already] failed. Evolve or go extinct.”

To be more specific, a company that fails to remain versatile and agile and instead gets trapped in doing “business-as-usual” with their primary legacy product is already a dinosaur and is already circling the drain. All it takes is a single major change and what seemed stable yesterday can disappear tomorrow and unfortunately for slow-moving and unadaptable companies, such changes come in many forms, from a sudden emergence of an innovative up-start competitor to an equally sudden global epidemic.

Now that we have covered the pitfalls of becoming a rusty corporate machine and have outlined in broad strokes what not to do, it is time to explore what companies should do instead.

“What are the rules that all adaptable businesses embrace?”

To paraphrase Sun Tzu, the first thing that is needed is to adapt the appropriate, correct outlook. In this instance, we have established that this means regarding economic downturns as a potential opportunity. If failing to adapt is tantamount to failure in itself, then the corollary implies that survivors who prosper even during difficult times are those who consistently adapt and pivot.

1. Embrace Flexibility

In order to achieve a large array of vital corporate goals, including the ability to prosper during difficult and good times alike, it is vital for companies to embrace flexibility. This concept is manifested throughout an adaptable business’ entire functional model. One part of this is incorporating freelance talent in a fundamental and seamless manner as a functional component of a company’s workforce. Flexible talent can be employed for both key competencies and specialized tasks, as well as for tasks to be completed that are outside of the company’s central focal area, such as the management of advertising operations or corporate social media pages, for instance. By employing freelancers to complete at least a subset of such tasks, a company can become more adaptable both in times of crisis and prosperity.

In short, the cheat code to being adaptable is to employ freelancers to support you during downturns in both essential and non-essential functions, thereby empowering you to downscale as needed. A company that employs freelancers also gains the additional advantage of being able to rapidly scale up by hiring their best freelancers as full-time employees when they have successfully navigated through an economic downturn. Conversely, a company that employs strictly full-time employees has a difficult time at both decreasing and increasing the size of their team in accordance with their needs.

2. Establish, Rather Than Follow Trends

Although monitoring industry trends is an important task and one that should indubitably be practiced by all companies, leading companies tend to establish trends rather than following what has already been done by others. This is a concept that can be identified by the signs of prevailing and consistent experimentation and innovation within a corporation. A difficulty of many large, established firms is to retain what is commonly referred to as “the start-up spirit” due to an increasing rigidity in processes and how things are generally done. It is a natural human trend to find patterns and to settle into the use of heuristics on the basis of past knowledge and experience.

Moreover, the lack of meaningful innovation within major corporations is often reinforced by the very on-boarding process that is used to welcome new individuals into the company. An effective way to combat this trend is to truly encourage out-of-the-box thinking, in part by attracting and welcoming fresh perspectives from individuals who do not possess intimate knowledge of your established way of getting things done.

3. Encourage Freedom

The single most noticeable difference that I found when I reflected on my experience working for start-ups as opposed to more established firms was in the way that priorities and projects are completed. The one thing that every start-up that I’ve worked or consulted for had in common was that tasks were never strictly speaking assigned. Instead, the typical start up approach is to recognize that each member of their team possesses unique talents and a core knowledge-set and as priorities become identified, start-ups embrace an all-hands-on-deck approach to completing them. During my own career, I have frequently had the experience of being asked to get involved in things far outside of my strict specialty simply because everyone was expected to get involved when a problem needs to be solved.

On the other hand, major corporations tend to assign rigid duties and responsibilities to each employee and employees rarely venture outside of this ‘box.’ What’s more, attempts to get involved in tasks that lie outside of one’s immediate purview are met with surprise at best, and hostility at worst. Rigid structures of this type have been repeatedly and unsurprisingly proven to hamper innovation, reduce productivity, and to have a negative impact on employee job satisfaction. Somewhat ironically, an emerging trend at large corporations is to develop in-house innovation labs where such all-hands-on-deck approaches are encouraged while that approach continues to be discouraged in the rest of that company.

4. Enable Experimentation

Questions that I am asked to help companies solve typically follow the theme of “Should we do A, or should we do B?” My reply is very frequently, “Try both and maybe a Plan C and D as well.” While I am not usually quite as dry as that, there is a basic underlying principle behind this pattern of question and response. It is quite common that managers spend a great deal of time deliberating between multiple options guided by the underlying assumption that one option must be bad, and one must be good — a corporate adaptation of the either-or fallacy, if you will. The reality, however, is rarely that clear-cut, and options should not viewed as a zero-sum game. Specifically, it is quite rare that an option that an experienced manager is seriously considering is truly awful (although this does happen) but it is also equally uncommon that a truly home-run opportunity is deliberated at length (alas, I have seen this as well). The conclusion is simple — both alternatives are likely worth pursuing and the only way to truly gauge which is better is to test both and then some. Generally speaking, the tenet of A/B (and perhaps C/D) testing basically everything has served me remarkably well and has likely been the most universally applicable of all of my guiding rules.

From a corporate perspective, this idea translates to “How do you know if something is good (or bad), unless you try it?” Once again, the most successful companies are the ones that invest into testing out new ideas at a small scale, focusing on gathering and analyzing the resultant data, and drawing meaningful and often groundbreaking conclusions on their basis.

5. Equip for the Worst

Economic fluctuations can and do occur due to a vast array of reasons and as such are appropriately regarded as unavoidable by the leading corporations of the world. A business that follows the adaptable model recognizes this fact and as such ought to develop both the well-known and popular concept of a growth strategy but also and equally importantly, a strategy for downscaling (or anti-growth if you would prefer a euphemism). By establishing and thoroughly analyzing both directions of growth, a company can therefore be always prepared for necessary changes and have appropriate innovations ready. In general, the wise approach here is to buck the general trend and to prepare for downturns during times of prosperity and thus avoid getting caught unawares.

This principle can be observed through a casual analysis of many of the companies that are performing well during this difficult period. Essentially, what these corporations have in common is that they have prepared for such a situation and effectively laid the groundwork for their present positions through substantial investments in technology and infrastructure which thereby empowered them to be able to adapt to increases or decreases in demand. This idea is akin to the disaster preparedness model in which the best practice is to adapt for future disasters before they occur. This is highly logical — as for instance, it is somewhat too late to erect flood protection barriers once a flood is already taking place.

6. … and the Best

The other half of bucking the common economic trend is to take advantage of periods of decreased demand to prepare to take advantage of inevitable surges through the development of new strategies and the creation of new competitive offerings that can be subsequently expanded during improved economic circumstances.

For example, Zoom Meetings has been able to benefit from the massive up-tick in the usage of its platform precisely because they had taken the appropriate steps to prepare for such an event beforehand.

7. Explore All Opportunities

As any businessperson can attest, there is a daily torrent of emails, InMails, and direct messages on every social media platform one can think of, describing various job positions and other opportunities, frequently of rather dubious character. As irritating as this can be, upon occasion I have found that some of these opportunities are actually rather interesting and lucrative. The issue is, of course, sifting through the meaningless and pursuing what is genuinely meaningful.

Similarly, hiring managers that are seeking to hire the best possible individual for a position are likewise inundated with oft-irrelevant applications. Thankfully, this task has been simplified to some extent due to the advent of ATS, but nevertheless the hiring process remains lengthy and cumbersome. Worst of all, however, is that it is impossible to be certain about a candidate’s true nature, the extent of culture fit, and the quality of their work output prior to them being hired. Moreover, the hiring process has had another monkey wrench thrown into its works due to the present unfeasibility of holding in-person interviews which have long been an integral part of any hiring process.

As traditional hiring practices are projected to continue to decline dramatically during this period, freelancers will be increasingly asked to step-in in the place of full-time individuals. In this case, the issue of hiring is thankfully resolved as leading freelance platforms provide a “try before you buy” service which allows companies to gain an effective and meaningful way to assess the quality of a candidate prior to initiating a long-term commitment.

8. Enter Partnerships

Another central idea that I have consistently championed over the years while working and advising for a wide assortment of different companies is the idea that a company should position itself as a partner rather than a provider. Essentially, my view is that there are two diametrically opposed types of service companies. The first type focuses on strictly delivering the services that they offer and on executing the tasks that they are assigned and is consequently perceived as dispensable by their clients during times of crisis. The second is regarded as a crucial strategic partner that serves as a guide for its clients rather than as a tool, and for this reason is seen as especially crucial during difficult periods.

Perhaps surprisingly, the fundamental difference between the two types of companies is not inherent in the specific service that they offer nor in the tasks that they carry out. Rather, the disparity between the two is derived from corporate positioning and the development of personal relationships, closeness, familiarity, and rapport. To put it simplistically, a company, through its actions, policies, and guidelines can simply decide to be a partner rather than a mere provider. In terms of enacting this, this is done by encouraging conversations instead of sales, by providing solutions not products, by genuinely being helpful and aspiring to solve any client issues (whether related to your solution or not), and by building strong personal ties that transcend the customer-vendor relationship.

9. Espousing Little, Do a Lot

One of the pitfalls that I’ve observed that both new and established companies tend to consistently fall into is that of making grand proclamations, writing them down, and distributing them through marketing materials and while being caught up in this process, somehow neglecting to actually enact those very principles. This is exemplified in empty statements which include original spins on such marvelous heirlooms as “employees are our lifeblood” and “customer comes first” and in the more advanced stages of the corporate spin disease, is manifested in the form of pursuing certifications and awards for such things as “Best Places to Work” and “Humane Workplace Certified.” Interestingly, my personal experience as well as the experiences of my colleagues and mentors with whom I discussed this point, indicate a certain relationship. Namely, the more emphatically a company declares their commitments to such principles orally and in writing, the less likely they are to actually practice them. Conversely, some of the best companies with which I and others have worked, never put their practices in writing and certainly never attempted to attain any awards for the things that they regard as normal.

Therefore, rather than waxing lyrical about your love, appreciation, and admiration for your customers and employees, simply do things that show that. Remember their birthdays, send them Christmas presents, regard them as honest-to-God human beings. Spend less time making pretty statements and spend more time implementing positive and meaningful change. In relation to adaptability, stop loudly proclaiming your company’s prowess in this and instead take steps to make it a reality.

10. Examine and Know Thyself

An unexpectedly common trend amongst many contemporary companies, even amongst the largest and most prominent, is a crisis of identity. In other words, many corporations seem to lack a fundamental and comprehensive understanding of what customer needs they truly serve as opposed to the ones that they believe that they do. This is a particularly important issue when it comes to unsteady economic periods in which many companies are forced to narrow their scope of services and to direct their focus to one or a few key areas. The problem arises from the fact that as companies grow, they tend to lose sight of their original purpose and frequently evolve in directions that differ substantially from their foundations. This becomes especially troublesome when clients start to cut down on costs and partnerships and find that the competitive offering of a given company with which they are partnered is poorly aligned with their own priorities.

On a related note, it is important for companies to recognize the gaps in their products or services and to be cognizant of the opportunities that their competitors may provide. Therefore, in order to properly embrace adaptability, a company needs to be in close contact with their clients and query them for genuine feedback including constructive criticism and also pursue a policy of competitive vigilance. In a nutshell and particularly during times of crisis, a company should be focused on providing an offering that maximally reflects the authentic needs of their clients.

11. Exercise Proactivity, Not Reactivity

Likewise, resilient companies practice a habit of consistently analyzing what makes their services and/or products valuable as well as keeping track of what they are lacking. In addition, it is important for businesses to proactively assess and recognize their various vulnerabilities. Such vulnerabilities can include the reliance of many corporations on other vendors to deliver their services and as such should be aware of potential impacts to not only their own operations but also to the operations of their suppliers and partners. As an example, Apple relies on a large assortment of Chinese vendors to provide various components for their iPhones, over and above their main manufacturing partner, Foxconn.

In addition to merely recognizing the various potential vulnerabilities to which a company may be exposed, adaptable companies are also careful to mitigate these potential business risks. For instance, if a company is reliant on a salaried workforce for the execution of certain non-core tasks, part of this risk can be mitigated by off-loading some of the work to independent contractors.

12. Equilibrium Above All

The final rule of conducting adaptable business is perhaps the most central and inspires many of the aforementioned ideas. In contrast to many of the other rules, this one is chiefly oriented at pursuing a perspective of being — both as an individual and as a corporate entity. This core principle is that of developing balance within oneself and of recognizing the balance that lies outside of the self. This basic concept has innumerable applications in countless forms ranging from being able to recognize the good parts in a bad situation and equally of being able to see the hidden risks within seemingly positive ones.

In terms of personal and professional life, it implies the need to find time for oneself and for others, whilst not neglecting one’s professional responsibilities and other critical commitments. Especially in the start-up sphere, this is demonstrated by the quest to find a middle-ground that lies somewhere between the two extremes of workaholism resulting in eventual founder burnout and of working 5 hour days “because you are your own boss.”

Most generally, this model is about being open to sensible opportunities while retaining a certain degree of caution and wariness. In sum, this is about — to paraphrase Aristotle — trying to find the middle ground in all things. As he writes in the Nicomachean Ethics, to possess an excess or a deficiency of anything is to be flawed. Too much courage results in foolhardiness, too little becomes cowardliness. Thus, companies and their managers alike should seek to consistently pursue this balance and to adapt and change accordingly.

In closing, we are currently living in such unprecedented times that that very descriptor is rapidly becoming passé. Without a doubt, the impacts of COVID-19 and the subsequent economic downturn will have a yet unknowably immense impact on the global economy and may possibly produce a transformational effect on business and even on our lives. It is a strange time of rapid change and the only thing that we can do is to try to be as adaptable as possible to the events that unfold day-by-day.

However, as with any massively impactful event, there will be opportunities aplenty waiting for those who are prepared and are willing to embrace them. Even as certain sectors like the travel and tourism industries decline, other industries are booming, and the freelancer economy is experiencing unprecedented growth. From where I am sitting (that is in my room being a responsible person), I believe that this was inevitable and that the only thing that remains for us to do is to adjust as best we can with the changing times and to attempt to be better prepared for the next cataclysm.