The path to the next normal

As the current health crisis steamrolls into an economic crisis unparalleled for the last 100 years, the decline in economic activity is already at par with the great depression.

This crisis of global proportions requires resilience, both for near-term issues like liquidity and cash flow, as well as long-term issues like uncertainty, personal financial stress and recovering from multiple challenges that were already present and are now further complicated due to the pandemic.

Returning to operative environments is extremely challenging, with reactivation of disrupted supply chains at multiple points and widespread disruption overall.

Leaders should reassess their entire business logistics and supply chain, planning for contingent actions. There is also an added threat of the resurfacing of the virus during winter, even if it subsides in the coming months, which can lead to a renewed crisis if we do not have a vaccine or any effective treatment in place by then.

As we can see most of our interactions, learnings and commercial transactions moving into online and virtual models, many other aspects of our daily lives will have to be reimagined and the leaders who have better insight and foresight will succeed. Many industries will have their existing business models completely disrupted, revealing vulnerabilities and new opportunities.

Luxurious but unessential items may have to change their business models or shut shop.

This ongoing global challenge will help identify existing faultlines and widespread practices that are toxic and are degenerating the environment but were neglected in the past due to the absence of a ‘black-swan’ event like the pandemic. 

• Certain sectors which were neglected earlier, like better healthcare in third-world (or even developed) countries, will now be in focus. 
• Economists and financial managers will need to work towards strengthening the system to withstand global shocks.
• Education systems will need to reform their existing practices and modernize the classroom.