The McKinsey & Companys review covers features of the current situation, which is uncertain and protracted. The authors highlight the key factors of the new realities, and also consider various opportunities for companies and organizations aimed at maintaining the proper level of their competitiveness.
In the previous version of review (COVID-19: an overview as of June 1, 2020) experts considered possible options for the epidemiological situation development associated with the COVID-19 pandemic spread, as well as key changes in the economies of countries affected by the coronavirus, which determine modern realities, within which businesses needs to plan their recovery.
In an earlier version of the study (COVID-19: Information Materials), experts from McKinsey & Company presented the main trends in the situation development amid the coronavirus pandemic, as well as responses to the crisis in different countries and in different companies, as of April 3, 2020.
Roscongress Foundation analysts highlighted the main theses of this research, accompanying each of them with suitable fragments of video broadcasts of panel discussions held as part of business programs of the key events hosted by the Foundation.
The continuing trend towards the spread of COVID-19, economic instability and the general uncertainty of the current situation, which is of a protracted nature, have the most negative impact on categories of people at risk.
By the time this review was prepared, the number of confirmed cases of COVID-19 around the world had reached 11 million, and today this figure is only growing. At the same time, the distribution of emerging cases of infection over time significantly varies from region to region. So, the main region of the coronavirus infection spread in period from January to March was China, while from March to April the main cases of infection fell on the European region. Since May, the region with a numerical predominance of new disease cases is the Americas, and as of July 6, the Caribbean countries accounted for about 30% of all cases of infection around the world, the USA and Canada 29%.
Changes in consumer behavior in favor of digital interaction, as well as remote working, which is driving a number of modern challenges, remain key in the new realities.
In general, expectations and forecasts for the general economic situation in the world are deteriorating. At the same time, despite the fact that June is marked by an increase in the share of those who believe that consumer demand will remain at the same level (22% versus 16% in May), in relation to the income of companies in June, there is a tendency for a slight increase in the corresponding indicator level (37 % in June against 33% in May).
In the previous issue of this periodic review the authors identified a number of factors that play a key role in the new realities. These factors include, among other things, the characteristic changes in consumer demand, both in the B2C and B2B segments. The nature of the changes noted earlier indicated firstly an increasing preference for use of digital tools when consuming a certain product or service.
The current situation of uncertainty provides a unique opportunity to improve ones position by making operational decisions.
In the current situation, the efficiency of decision-making is of particular importance. Those companies and organizations that are now capable of making decisions at a fairly high speed have a clear competitive advantage. According to experts, the characteristics of organizations with a focus on speed are a lesser degree of hierarchy of the organizational structure and a simplified procedure for making management decisions, accelerating information flows and operational data analysis, flexible working time patterns, as well as dynamic personnel allocation with respect to critical capabilities that have a decisive value at a specific point in time.
The current situation of uncertainty still provides a unique opportunity to improve ones position precisely due to the speed of reaction. The review authors note that uncertainty is an ordinary phenomenon, contributing to improved efficiency and productivity in the future.
See other materials posted in special sections of the Roscongress Information and Analytical system, COVID-19, StayHomeEconomy, Epidemics and Entrepreneurship, dedicated to possible ways to counteract epidemics, one of the most serious threats of non-economic nature, ways to stabilise the economy in a complex epidemiological situation, as well as measures to develop entrepreneurship.