Eight Ways To Emerge Stronger From The Crisis

With the pandemic easing, it’s time for businesses to square their shoulders and aggressively move toward a digital-first strategy, says Paul Roehrig, Head of Strategy at Cognizant Digital Business & Technology.

The COVID-19 pandemic has taken millions of lives and triggered trillions of dollars’ worth of economic wreckage. And while news regarding vaccines is encouraging, now is not the time for the world to turn its back on safety measures proven to help slow the spread of the virus.

Nevertheless, vaccines are taking hold at various rates worldwide, and there is every reason to believe the grip the coronavirus has held on the world for over a year is easing.

Early in the crisis, we explored steps businesses should take to eventually emerge from the pandemic in a strong position. We believe that advice has held up, and that now is the time for forward-looking companies to accelerate digital initiatives.

Eight ways to catalyze post-crisis gains:

A year ago, “becoming digital” was seen by many as a desirable elective, but now — in our new world — it’s mandatory. The most common questions from business leaders from every industry and region have been: “I get the theory, but where do I start? What specific steps can I take today to ensure a healthy tomorrow?” These eight critical tactics will help:

1) Modernize data

It’s more important than ever to turn data from a liability into an asset. Companies that haven’t gotten control of their data are already behind, and the new economy will make it harder to recover. It’s no longer justifiable to pay to maintain terabytes (or more) of data and then not use it for business outcomes.

Improving decisions and experiences — and growth — with applied intelligence is infinitely more difficult (or impossible) without data that is relevant, accessible, secure and used to improve decisions or customer experiences. A data audit — figuring out what data is available, being accessed and for what purpose — was a no-regret decision 13 months ago. Now it’s a condition for survival.

2) Unshackle from legacy applications 

Roughly $3 trillion of economic value per day still runs on COBOL. That’s a staggering reliance on a programming language dating back to 1959. Going forward, business pressures will make it unsustainable to be trapped by this heritage software. Consumer relevance, faster time-to-market and cost savings have never been more important.

Many companies feel trapped by their legacy software, but there are new tools, processes, engineering methods and partners to help unlock value that is trapped in data centers. The first step is a complete software audit to understand which applications make the most sense to modernize, which should be left alone and which can be turned off.

3) Modernize how employees work

Remember going into an office? Getting on a train? The TSA pat-down? We’ll do all that again, but ideas and practices about how we work together will never be the same. The pandemic shock accelerates the imperative to be able to work from an office, the home, the car, the … well, anywhere! Today’s employees seek the same high-quality experience as a consumer using the best software.

Old, difficult-to-use interfaces and systems hinder how employees interact and collaborate, and store and exchange information. Seamless, secure connections across web, mobile, voice, collaboration systems, platforms and processes have made great strides during lockdowns. We aren’t going backward, so the time is now to extend the modern employee experience.

4) Modernize consumer experiences

In just a few painful weeks in 2020, elegant, secure, scalable online content and commerce went from critical to essential for every consumer-facing industry. Content has always been important, but with more transactions online, the ability to deliver that content to the right person, at the right time, in any place, via any device, via beautiful software is now and forever a business imperative.

Regardless of industry, expectations for engagement have shifted. The immediate reaction for too many businesses was to throw cash at front-end consumer-facing apps. A better bet is to take a step back and understand how the lifecycle of demand can be changed longer-term. That starts with deeply understanding how human wants and needs are likely to unfold in line with specific products and services.

5) Engineer software for the new economy

Every modern business needs software that can be built quickly and scaled effectively to deliver modern (human-first) experiences across the value chain for employees, partners and customers. It’s not necessary to be better at software engineering than Google or Microsoft, but it is necessary for every company to become more software-centric.

Tools, engineering methods and technologies already exist to help an enterprise become a better bank, a better insurer, a better retailer. This requires rethinking how core IT teams are structured, how they work and how they are incented, plus reevaluating the partner ecosystem critical to the business. Every major company is building software all the time, but it’s now time to explore new methods. Starting small can show near-term progress while mitigating risk.

6) Virtualize core work

The total impact of the COVID-19 pandemic will take years to become clear. However, one irrefutable shift is the new requirement for companies to modernize core process work. Middle- and back-office work that is slow, labor-intensive, expensive, opaque and unchanging is no longer allowable. Nearly every organization we know of can improve supply chain management, HR, finance and industry-specific process work.

Notably, the pandemic unlocked virtualized medical care as medical workers used technology to provide at-home solutions or even in-hospital solutions more safely and effectively. And that’s just one example. Automation, applied intelligence and worker enhancement have all moved from “helpful” to “critical” during the COVID crisis. Now is the time to begin exploring which points on the value chain make the most sense to modernize today.

7) Modernize the cloud foundation

For years, IT has been chipping away at costs by moving work to service providers and pushing centralized computer loads to the cloud, but that was really just Phase One. The unprecedented economic downturn has shone a spotlight on how much more can be done, and how rapidly. Threadbare arguments against reducing IT costs — e.g., by more aggressively moving into the cloud, deploying cost-effective software-as-a-service platforms, reducing operating costs of non-core work – must be overruled. We recommend a pivoting from, “What can we move into the cloud?” to, “What can’t we move to the cloud?”

8) Make every space smart (and safe)

For years, sensor-enabling industrial equipment has improved productivity, reduced downtime and paved the way for more “as-a-service” business models. In the post-pandemic economy — as demand evolves and our expectations and concerns about staying safe in public spaces remain top of mind — nearly every company that operates in physical space will have to adopt the same philosophy.

COVID accelerated the development of technologies that assess occupant health and help us maintain safe distances, clean surfaces, etc. This takes a coordinated solution linking sensors, analytics and software. Business leaders must continue to be proactive in applying instrumentation, analytics and software engineering to make every space intelligent, less expensive to manage, more comfortable and safer.

To learn more, read our report “From Chaos to Catalyst,” visit the Digital Business & Technology section of our website or contact us.

Paul Roehrig is Head of Strategy for Cognizant Digital Business & Technology. He is the Founder and former Global Managing Director of the Center for The Future of Work at Cognizant. Along with Malcolm Frank and Ben Pring, he is a coauthor of What To Do When Machines Do Everything: How to Get Ahead in a World of AI, Algorithms, Bots, and Big Data and Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business. Paul’s most recent work is Monster: A Tough Love Letter on Taming the Machines that Rule our Jobs, Lives, and Future, which he co-authored with Ben Pring. He can be reached at Paul.Roehrig@cognizant.com.

Source: Eight Ways To Emerge Stronger From The Crisis

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Emerging from crisis requires humanity not strategy | Daily FT

As Pandemic Fatigue Sets In at Work, Employers Try to Help

People are tired. Between a global pandemic, economic crisis, social unrest, & political upheaval, the past year has been physically and emotionally draining for just about everyone, and perhaps most for essential workers.

Across industries, workers struggling with pandemic fatigue are facing burnout more than ever. For leaders, keeping these employees engaged and motivated is a challenge in itself. While some leaders are turning to incentives like gift cards and cash to help support employees, others are taking a softer approach, investing in relationships and focusing on workplace communication.

Money Talks

When the pandemic began, the hospitality industry fell off a cliff, says Liz Neumark, founder and CEO of Great Performances, a catering company in New York City. She knew keeping everyone employed would be difficult until her business could find another source of revenue apart from events, which eventually came in the form of preparing meals for essential workers and people unable to quarantine at home. While some of her employees, such as those in sales or event production, saw salary reductions, chefs, kitchen staff, and other employees making food for essential workers kept their full salaries and got help with transportation as well.  

The founders of P. Terry’s, an Austin, Texas-based fast-food restaurant chain, give employees gift cards and cash to help pay for groceries and offer them interest-free loans. They also incentivize employees to participate in community and civic causes, including paying hourly wages for volunteer work.

Justin Spannuth, chief operating officer of Unique Snacks, a sixth-generation, family-operated hard pretzel maker in Reading, Pennsylvania, increased hourly wages by $2 for all 85 of his employees. The company also hired additional temporary employees to provide a backup workforce. Spannuth says the move helped persuade employees with possible symptoms to stay at home by easing the guilt that employees can have about not coming in and potentially increasing the workload on their colleagues. 

“The last thing we wanted our employees to do was get worn out from working too many hours and then have their immune system compromised because of it,” says Spannuth.

Helping Employees Connect

Andrea Ahern, vice president of Mid Florida Material Handling, a material handling company in Orlando, Florida, says it was difficult to keep morale up when the business was clearly struggling; employees were uncertain about the company’s future, and their own. To help ease the stress, the company held a wide array of picnic-style meals in the company’s parking lot. It was a light distraction that still followed Centers for Disease Control and Prevention guidelines. Now, she says, morale has started to rise.

“With the release of the vaccine and the so-called ‘light at the end of the tunnel,’ we’re starting to see the industry get a lift in activity, and associates feel good when they know their jobs aren’t at risk. However, it wasn’t always this way.”

These kinds of events can, of course, also take place virtually. Company leaders across industries are encouraging staff to treat Zoom as a virtual water cooler. But while casual online gatherings after work can help colleagues maintain friendly relationships, they can also contribute to “Zoom fatigue”–the drained feeling that comes after a long day of video calls, which often require more concentration than in-person meetings.

Matt McCambridge, co-founder and CEO of Eden Health, a primary/collaborative care practice based in New York, says while his teams hold regular virtual water coolers, they switch it up. For example, the company hosted an interactive “dueling pianos” virtual event over the holidays, as well as a magic show. 

Better Communication From the Top

Communicating support work-life balance at a time when many people are remote and facing trauma is critical. Neumark notes that when her catering company was pivoting and in the process of providing hundreds, if not thousands, of meals, the team was relying mostly on sheer adrenaline. Months later, now that the novelty is gone and fatigue has fully set in, the boundaries she set are crucial.

One rule, for example, is weekends off, unless there’s an urgent, unavoidable request. “The weeks are still so intense, and people need their private time right now,” says Neumark.

It’s essential that leaders understand the issues their employees may be facing and not try to gloss over them, says Dr. Benjamin F. Miller, a psychologist and chief strategy officer of Well Being Trust, a foundation aimed at advancing mental and social health. “When your boss is pretending that everything is OK, it doesn’t create a conducive work environment for someone to talk about having a bad day,” says Miller. That’s one reason virtual water coolers often fail, he notes. While they’re great at getting people together, there’s little benefit if people can’t speak openly and honestly.

It’s also OK to tell employees that you, as a leader, are not having an easy time. Showing vulnerability doesn’t show weakness, Miller adds. You’re setting an example that shows that it’s OK to be honest and acknowledge that not everyone is not having the best time. If you aren’t aware that someone is in a crisis, he says, you may lose the opportunity to reach out to that person and help.

By Brit Morse@britnmorse

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The Bright Side Of Covid-19: Seven Opportunities Of The Current Pandemic

The coronavirus pandemic has a lot of dark sides. Around the world, people get ill and die, schools close, the healthcare system is overloaded, employees lose their jobs, companies face bankruptcy, stock markets collapse and countries have to spend billions on bailouts and medical aid. And for everyone, whether directly hurt or not, Covid-19 is a huge stressor shaking up our psyche, triggering our fears and uncertainties.

No matter how serious and sad all of this is, there are upsides as well. Therefore, along the Monty Python song “Always look on the bright side of life” let’s not forget those and make the best of what the crisis gives us. As the good old SWOT analysis tells us, there are not only threats, but also opportunities. With opportunities I don’t mean that the crisis provides extra business for companies like Zoom and Go to Webinar that enable virtual meetings, or for Amazon, which is planning to hire another 100,000 employees. The latter is probably more a threat than an opportunity for most, especially for the mom & pop stores that go through difficult times already.

With opportunities I mean general opportunities that are available for most people affected by the crisis. The current crisis offers at least seven of them:

Opportunity 1: More time

In today’s overheated economy time is often seen as the most valuable and sparse thing we have. Covid-19 shows why: because we have stacked our week with social gatherings and entertainment such as going to the theater, birthdays, cinema, restaurant, bar, sportclub, gym, music, festivals, concerts and what is more. Suddenly, all of that is cancelled or forbidden, giving us significant amounts of extra time. And still, live goes on. This shows us how easy it is to clear our calendars. Obviously this doesn’t apply to the health-care sector and other crucial sectors, but beyond those it applies to a large majority of sectors.

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The opportunity is that we can spend this time on other things—or even better, on nothing and enjoy the free time. Looking at the crowded parks, waste collection points, garden centres and DIY stores in the last week, many people seem to have a hard time with the latter. Instead of enjoying the extra free time, they fill it immediately with other activities. To seize this first opportunity though, re-arranging how you spend your time and reserving time for nothingness is key. Not just during the crisis, but also after it. The advices in my previous article on the Covid-19 crisis could help in realizing this.

Opportunity 2: Reflect and reconsider

The fact that the coronavirus disrupts our day-t0-day lives provides an opportunity to reflect on things and to reconsider what we do, how we do it and why we do it. Things we took for granted—like going to the gym—are suddenly not possible anymore. Furthermore, many people have had to change their mode of working and work from home instead of at the office. This means that a lot of our routines are interrupted. MORE FOR YOUWhy KPIs Don’t Work; And How To Fix ThemHow Cisco Takes Care Of Its EmployeesWhat Business Leaders Can Learn From The Special Forces

This offers a great opportunity to rethink our habits and routines and make changes. Now that you haven’t been able to go to the restaurant twice a week, commute 2 hours per day, hang out with your friends or go to a party every weekend, you can reflect on whether you really want to continue doing so after the crisis. The virus forces you to make changes to your daily life that you might actually want to keep also after the crisis.

Opportunity 3: Speed and innovation

Many organizations suffer from slow procedures, complex bureaucracies and rigid hierarchies making organizational life less than pleasant. The coronavirus has forced many of them to break through these rigid systems and act instantly. Suddenly procedures can be skipped or accelerated, rules can be side-tracked and decisions can be made more autonomously without formal approval. And suddenly employees are allowed to work from home without direct supervision.

Covid-19 shows that, as soon as there is a strong enough stimulus, things can change. This leads to remarkable innovations. Not being allowed to open their doors, restaurants, for example, are shifting to delivery mode. And schools suddenly do much of the teaching and even some of the testing online. This brings the opportunity to create innovations now that can be maintained after the crisis. And it also can help to keep the current speed and innovation mode afterwards.

Opportunity 4: Better meetings

As referred to in an earlier article, people spend up to 23 hours per week in meetings, half of which are considered a failure or waste of time. The current crisis has forced us to rethink how we deal with meetings. Because in many countries it is not allowed anymore to meet with a group of persons, many meetings are cancelled. And when they still take place they are mostly virtual and shorter.

As such, it provides an excellent opportunity for resolving one of the most disliked parts of organizational life. The technology for this is already present and mature for a couple of years, but the coronavirus triggers a sudden need for it. The real opportunity here is to make systematic changes so that meetings will be more effective, also after the crisis.

Opportunity 5: Reconnect and help

Challenging times offer a great opportunity for social bonding and other ways of connecting to and helping people. Of course, not being able to visit friends or family has increased isolation and feelings of loneliness in some cases. But the feeling of “we’re in this together” has also triggered interesting ways of connecting. Some of those have gone viral—such as Italians singing together from their windows and balconies—but there are many small, local initiatives too to connect and help people who need it.

In the individualized societies many of us live in, this provides opportunities to reconnect and create more social coherence. Not only during the crisis, but also afterwards. This opportunity comes with a big caveat though. Parallel to these nice initiatives we also witness how far people go to protect themselves and their families. People hoard food, medicine, toilet paper and guns without thinking a second of others. However, while it triggers self-serving egocentric behavior too, the Covid-19 crisis does provide us the opportunity to reconnect and show our social side.

Opportunity 6: Cleaner environment

The virus caused a shutdown or dramatical decrease of industrial activities. Factories are closed or operate far below their capacity, road traffic has reduced radically and air traffic collapsed, and the lack of tourism has emptied the streets in overcrowded cities like Venice, Amsterdam and New York. While this may be bad news for most people and especially those working in the affected industries, this is also good news for our planet. Covid-19 causes a significant reduction in green house gasses and other air, water and land polluting outputs. In Venice this has allegedly led to dolphins return after just a couple of weeks (although some argued this to be a hoax).

Whether the particular example is a hoax or not is not so relevant. The fact is that the shutdown and lockdown of large parts of our economy is good for nature—at least on the short term. The opportunity this provides, is to keep parts of this in place also after the crisis to make long-term improvements. Along the line of the previous opportunities, the current crisis provides us an opportunity to reconsider our lives and reorganize it in a way that has less impact on our planet.

Opportunity 7: Modesty and acceptance

The final opportunity that the Covid-19 crisis offers, is a chance to create awareness for the moderate role we play on this planet and accept that things cannot always go as we want them to go. The Covid-19 pandemic is a global crisis chat is unprecedented in modern peace time. We had other pandemics like SARS, but their impact was less substantial. And we had the 1973 oil crisis, but that was a man-made crisis. The coronavirus is not man-made and yet disrupts lives across the planet.

As such, the virus shows us that, no matter how well-planned and organized we are and no matter how much we live in the Anthropocene—the era characterized by significant human impact—we are not in control. One simple virus is disrupting everything. This offers a great opportunity. In almost every aspect of life we want to be in control. Whether it is health, airline safety or our calendars, we live in the illusion that full control is possible. The virus can help us create awareness that this is not the case. It provides an opportunity to take a more modest role and accept that many things are simply beyond our control.

Once again, the Covid-19 crisis has a large dark side. But as these seven opportunities show, it has positive sides as well. Since all seven opportunities require a quite fundamental change in how we approach the world, seizing them can take substantial time. In that sense, and if we keep on looking at the brighter sides of life, the longer the crisis lasts, the larger the opportunities are and the bigger the chances are of actually making changes to our deeply rooted habits and convictions. Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Jeroen Kraaijenbrink

 Jeroen Kraaijenbrink

I help companies do strategy through training, mentoring and consulting. My drive is to bring you and your organization to the next level with strategy approaches that work. I wrote “Strategy Consulting,” “Nor More Bananas,” and “The Strategy Handbook.” Reach out to me via jeroenkraaijenbrink.com,  LinkedIn or jk@kraaijenbrink.com

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Pat Flynn 282K subscribers 26 million Americans are without a job right now, and that’s just in the U.S. alone. It’s a terrible situation, one that I’m all too familiar with myself having gotten laid off during the recession in 2008. These are tough times, but there are opportunities within them, too. I was able to build a business back in 2008 as a result of getting laid off, and I imagine that those who focus on the future, and the ability to create something new now, are the ones who are going to come out of this dire situation best.

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3 Ways To Be An Authentically Empathetic Brand

The pandemic has shown us that brands and leaders acting with empathy, authenticity and transparency have an edge. From the media attention and cultural significance Zoom garnered by supporting K-12 schools to Starbucks expanding mental health benefits to its employees and their families, consumers are taking notice. In fact, DoSomethingStrategic has been researching Gen Z’s response to brands throughout the COVID-19 crisis and found that even young people are paying attention to how companies treat employees, partners and communities — and they reward or punish said companies with their wallets.

According to a recent poll, Americans believe it is now more critical than ever that brands “demonstrate empathetic qualities and take action to maintain customer loyalty and support.”

Empathetic leaders, cultures and brands enjoy higher levels of innovation, collaboration, loyalty, positive word of mouth and, per my experience and research, profitability and market valuation. The results prove that empathy is not just good for society; it’s great for business.

Leaders are starting to get it. But how can they ensure this empathy comes across as authentic and engaging to customers? After all, we’ve all been burned by companies that say they care about customers when the reality is quite different.

To be believable, effective branding must start from the inside out. Here are three ways to ensure your brand — as a leader or as a company — walks the talk and avoids what I call the dreaded “empathy veneer.”

1. Move Beyond Social Memes

Marketing can’t solve all your reputation issues. It simply communicates the truth of your real story. Involve every department in the conversation: HR, product, customer service. Who are we? Why are we here? Who do we serve? What are we about? Align on your mission and values, and audit your policies and practices to back up your claims. If you have not “operationalized” this value, no one will believe in it. For example, if your company is taking an empathetic stance on racial injustice, posting nice thoughts on social media is not enough. Your company must change its hiring practices, recruiting policies and pay structures to make customers believe you are the real deal.

2. Hire For Emotional Intelligence

A brand is merely a collection of actions performed by people. If you truly want to be an empathetic brand, you must hire the right people to live it out. This means going beyond the resume and assessing emotional intelligence. Ask tough questions to get to who people really are: How did they get past a disagreement with a colleague? What do they do to ensure their team members feel seen, heard and valued? How do they handle negative feedback? How have they gone “off script” to solve a customer’s problem? You can always teach technical skills but it’s harder to teach someone to be creative or collaborative in a clutch moment.

3. Leverage Accountability and Rewards

If you want your organization to have an empathetic culture, you have to make that the criteria for success. This means acknowledging, rewarding and modeling the behaviors you seek through performance evaluations or bonus discussions. Others will see that this is how success happens at your company, and they will understand this is what is expected. Employees are not dumb. If you’re constantly rewarding people who blatantly ignore core values, refuse to listen or disrespect colleagues, you send a clear message that your words mean nothing.

Your company can’t simply make empty marketing promises if your internal processes don’t align to external gestures. Branding starts from the inside out.

It’s not merely about projecting an empathetic brand. Walk your talk across the entire customer experience. If you do that, customers will see you as authentic and engaging, whether they’re interacting with your company in person or online.

By: Maria Ross , Founder, Red Slice

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Flying Canvas Productions

There are 3 components you must have to market with empathy. But first, you must understand what empathy really is: a personal identification between story and audience. It’s not enough to create video content. Customers demand stories. Therefore, brands have to be storytellers. This video guides you through the requirements of empathetic marketing, while steering clear of the pitfalls of misusing it. https://flyingcanvasproductions.com/e…​ Flying Canvas is more than a video production company. We’re story-makers. We’re an artisan video marketing studio for the digital brands and agencies, who want to rise to the modern customer’s demands. https://flyingcanvasproductions.com

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What The Vaccine Won’t Solve

While the start of vaccine rollouts offer hope that the worst of the pandemic may be over, its devastating financial impact for many will be felt for a long time to come. In research spanning 18 countries from the Deloitte Consumer Industry Center, we find evidence of continued household financial distress.[i] One in five consumers are spending more than they take in as income. During the course of the pandemic, they are twice as likely to have had their financial situation change for the worse and to indicate that they have cut back on staples like groceries and household goods. 

That can lead to tough choices like dipping into savings, increasing the use of debt or prioritizing which upcoming payments will be missed. Even larger numbers of consumers are worried about this becoming their fate.  Forty percent of all consumers in our study are worried about the amount of their savings and credit card balances.

Since the 2008 Great Recession the divide between more affluent consumers and lower income consumers has grown.[i] Just as the pandemic accelerated the adoption of contactless commerce, video conferencing and home gyms, it also accelerated this bifurcation. The pandemic has created one world among high income people who can work at home and make discretionary purchases, and a second world of people who are more likely to be unemployed and/or more limited in their buying ability. While the pandemic has inconvenienced more affluent consumers, others have experienced a severe economic crisis that is likely to extend for some time.

Economists talk about the “K-shaped” recovery—to describe how different segments have experienced, and will continue to experience, the effects of the pandemic.[ii]Our research shows that the K-shaped recession and recovery are features of many economies and a direct outcome of the pandemic’s acceleration of a long-term change in the labor force.

Globally, the chances of being unemployed were about six times higher among low income workers compared to high earners though that varies by country.  The ratio is higher in the United States (nine times as likely). While in Germany, low-income workers were only four times as likely to be unemployed. The difference is likely the result of Germany’s Kurzarbiet scheme to keep workers attached to their employers (so they aren’t officially unemployed) compared to the U.S. use of unemployment insurance. Similar schemes are set-up in all Western European countries.

With the pandemic, unemployment was, in many cases, spurred on by an inability to work from home. Consistent with World Bank research that finds that “jobs more amenable to WFH are more prevalent among workers with high levels of education, in salaried employment, and among younger workers,”[iii] high income workers in our tracker are almost twice as likely to be working at home as low income workers.[iv] 

Spending Bifurcation

Spending bifurcation is also very clear. We track spending intent on 15 categories of goods and services ranging from groceries to travel. Some of these, like housing and medicines, are essential, or non-discretionary from the point of view of the consumer. Others, like entertainment and electronics, can be more easily postponed or managed without. This is discretionary spending.

Globally, since early May, the difference in discretionary spending intent has widened. At that time, approximately 40% more high-income than low-income households planned to spend more on discretionary goods. By the beginning of January, about twice as many high-income households reported such plans.

Not only are high income households now even more willing to open their wallets for “nice to have” items, they are also a third more willing to pay for the contactless commerce and other forms of convenience accelerated by the pandemic. This differs quite a bit by country.  Germany and the Netherlands lead the way by being three to four times more likely to pay for convenience respectively. And despite the importance of convenience during the pandemic, lower income households are less willing (or able) to pay for it.

How should businesses respond? 

For the past few years, we have advised Retail and other consumer companies to prepare for a corresponding bifurcation between price-based value and value delivered through differentiated product or services.[i] Indeed, priced-based mass merchants and luxury brands fared well while others struggled during the pandemic. Possibly more than ever, companies should urgently refine their focus.

Specifically, they should:

  • Deepen empathy for consumers and employees. Wall Street and Main Street have experienced the pandemic differently. Don’t be fooled by rising indices. Reconnect with and evaluate your investments in your customers and employees to better understand their experiences and needs.
  • Make trust a guiding principle. Trust in institutions overall is in decline, but it is critical to success. Eighty-five percent of customers choose trusted brands over others, compared with only 60% who select brands they don’t trust.[v] Trust has clear impact on financial performance.[vi] Investing in and continuously building mutual trust with consumers can help ensure they come along with you on the journey, even when inevitable shocks occur.  
  • Become more granular in your consumer observations. The standard, historical data relied on pre-pandemic may not capture new consumer realities. Decisions made based on old data models can easily go wrong. While continuing to rely on judgment and instinct, leaders should also get creative in seeking new forms of outside-in real-time consumer, marketplace, competitive, and economic data to inform decisions.
  • Become more precise in your value propositions. Adjust how you segment consumers, prioritize channels, establish product portfolios, position your brands, and deploy service models in ways designed to address your chosen strategy and explicitly avoids getting caught in the shrinking middle. 
  • Be agile with your channels. The shift to digital was already happening, but COVID accelerated consumer adoption. Companies that invested heavily in their digital commerce, services, and offerings pre-pandemic (e.g., mass merchants) shifted faster between channels and fared better than those that did not. Recently, half of consumer company executives said they will be increasingly reliant on online and omnichannel strategies.[vii]

Other contributors to this piece: Steve Rogers, executive director, Deloitte Insights Consumer Industry, Deloitte LLP and Danny Bachman, US Economic Forecaster, Deloitte

[i] The Great Retail Bifurcation, Deloitte Insights

[ii] See Eric Morath, Theo Francis, and Justin, “The covid recovery carves deep divide between haves and have-nots,” Wall Street Journal, October 5 2020.

[iii] Maho Hatayma, Mariana Viollaz and Hernan Winkler, “Who can really work from home,” World Bank blogs, May 28, 2020.

[iv] Deloitte Global State of the Consumer Tracker[i] The Great Retail Bifurcation, Deloitte Insights and “The consumer products bifurcation,” Deloitte Insights

[v] Deloitte Consulting LLP, Deloitte HX TrustIDTM survey, May 2020.

[vi] Stephen M. R. Covey and Donald R. Conant, “The connection between employee trust and financial performance,” Harvard Business Review, July 18, 2018.

[vii] Deloitte 2021 Consumer Products Outlook

Leon Pieters

Leon Pieters is the Consumer Industry leader for Deloitte Global, where he is responsible for overseeing globally four consumer sectors: Automotive; Consumer Products; Retail, Wholesale & Distribution (RWD); and Transportation, Hospitality & Services (THS). Leon is charged with setting the overall strategic direction and go-to-market strategy for the practice.

Anthony Waelter

Anthony Waelter

Anthony is a partner in Risk & Financial Advisory within Deloitte & Touche LLP. He currently serves as both the US Consumer Industry Leader and Advisory Consumer Industry Leader. Previously, he led Advisory’s Finance Transformation practice and is a former member of Deloitte’s cross-business Finance Transformation leadership team. With nearly 30 years providing finance transformation services to multinational clients in the consumer products, manufacturing, transportation, retail and distribution sectors, he focuses on assisting clients with transformational projects involving the development and/or evaluation of finance operations and programs designed to improve financial integrity, compliance and operational effectiveness and efficiency.

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Yahoo Finance

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