While the pandemic has posed unique hurdles for businesses of all variety, many companies have broken molds and successfully pivoted in this time of uncertainty. Regardless of the industry — retail, hospitality, travel or B2B — adaptable mindsets, taking action, innovation, lean practices and a focus on minimizing waste while maximizing value have been key differentiators between the companies surviving and those thriving.
The pandemic provides a case study for businesses to maintain a state of constant flexibility and readiness to capitalize on (or at the very least float along) amid unexpected industry or societal changes. Here are a few insights I’ve gleaned as a business leader from 2020’s unprecedented events to date, as well as some tips for other leaders for pivoting.
Dare to Go Digital
In the early stages, companies flocked to digital to stay in touch with their customers and stakeholders. For example, food and beverage businesses like bakeries and restaurants developed simple e-commerce sites to sell flour and other staples directly to consumers since restaurant dining was prohibited. This was a pivot of necessity for most restaurants, but many have found long-term value, by having accessible and trackable feedback from customers, enhancing the customer experience, and even offering “gift items” and other swag through online ordering. Longer-term, many restaurant owners are pushing direct online ordering, instead of using aggregators such as GrubHub, which cut deeply into profit margins.
Adapting Inventory
Other pandemic-related pivots include shifts towards PPE and other healthcare staples. In response to mandates to mitigate germ spread, Aquaverve made a quick shift to provide high-quality sanitary wipe dispensers and wipes to hotels, gyms, businesses, and schools. The team also perfected the company’s touchless water cooler technology and availability in a simple yet powerful pivot, resulting in an incredible demand for these much-needed products.
Another example, Boomer Naturals, a maker of skincare and wellness supplements, added facemask production during the pandemic. The company’s management initially saw this as a short-term play, but it has become a sustainable part of the business producing masks for consumers, other institutions and kids returning to school.
Lastly, many alcohol companies, like Bedlam Vodka, deployed a seamless pivot to hand sanitizer production. This was an instinctive move given spirit distilleries already have experience with bottling, production lines, and supply chain management.
All of these dynamics offer lessons for businesses adapting during any type of crisis or market opportunity — be open to change and have the patience to see that action creates long-term value.
Tips for Dynamically Adjusting to Market Conditions
While pivots of some businesses were synergistic and instinctive, other companies did not have such an obvious path. When the path is less clear, it’s important to take a beat to assess the company’s strengths and weaknesses. Specifically, take time to review the ways customers can still be reached and ways the business’ expertise can be used to benefit those customers and their adapting needs.
Here are some additional tips for business leaders to quickly adapt to changing conditions:
- Run Lean: Always run a lean operation by finding ways to improve all facets of the business, so when opportunity or crisis comes, there are cash reserves and lower operating expenses to cushion through a transition.
- Get Creative: Continually examine the people, processes and technological attributes of the organization. Pick the best performers out of this group and then find matching opportunities. This could be as simple as a hair salon offering its customers at-home kits to color their hair, paired with virtual instructions from a stylist.
- Lean into Digital: Use virtual tools to your advantage. Lawyers and accountants are billing clients for Zoom consultations. Family doctors are adding telemedicine consultations. There’s opportunity to use video conferencing as a complement to existing products and services, and firms should proactively find ways to use video to create value. Build virtual capabilities and cloud-based tools now, even if there’s not a specific business use case. Being prepared helps to capitalize on a trend that’s only accelerating.
The Takeaway
Businesses can improve their odds of success by preparing themselves for crisis or opportunity. Not only does it position the company as adaptable, but it also nods to providing sustainable jobs and growth opportunities for the company’s workforce. The pandemic is an extreme event, but there’s transformative industry-specific changes that happen all the time. No matter the cause, pivoting successfully requires a willingness to change, take bold action, and move forward with confidence.
