01.

THE WORLD's BIGGEST WFH EXPERIMENT.

In a world that thrives on certainty, we have been thrust into an abyss of unknowns. One thing is certain though and that’s the way we interact, the way we socialise and the way we work will be changed forever.

The notion of business being built on handshakes, face to face meetings, travel and networking has all been curtailed by this global outbreak. C19 has forced many businesses to implement remote working. Companies now find themselves having the responsibility to protect their workforce; to keep them healthy and productive in different ways. This coupled with uncertainty about the future makes employee engagement an even bigger challenge than before the pandemic.

Adapting to new ways of working

It’s pretty impressive how even large and complex companies with legacy systems have, when forced to, managed to get their entire workforce working remotely. Overnight, literally hundreds of thousands of employees have converted their dining room, living area, box room or even in some cases their bedroom into a space from which they can work.

The sudden increase in working from home is presenting problems as well as opportunities: on the one hand, startups such as Slack and Zoom and established giants including Google and Microsoft are offering their tools for free, in the hope that people who start using them in a crisis may carry on once normality returns.

On the other hand, some systems are already creaking at the seams. Corporate networks, unused to having a majority of their connections coming in over virtual private networks (VPNs), are experiencing unusual quirks, while internet service providers have come

under pressure to lift bandwidth caps so that remote workers do not get cut off from their employers halfway through the month.

Sustaining new ways of working

There’s been a deluge of online content providing tips and tricks on how to keep yourself mentally and physically healthy - from Joe Wicks’ daily workout (he landed himself 1.2 million new YouTube followers in one week) to Jamie Oliver’s Keep Cooking and Carry On series (the first episode aired just 3 days after the UK went into lockdown - that’s fast moves from Jamie and his team, plus C4’s production company).

But there’s not much consideration being given to how businesses can sustain this way of working into the longer-term. Given the effort that’s gone into setting employees up - from adapting and improving technology through to providing suitable equipment like screens and chairs, it’s easy to see why taking advantage of having no physical space related overheads could be tempting. Offices will shrink and become places to pop into a couple of

Adapting is definitelythe new normal

The big picture and longer term implications of a pandemic that has already claimed thousands of lives, cratered global economies and closed international borders is still unknown. Thanks to enforced restrictions on our daily lives, we’re all - individuals and businesses - functioning in completely different ways.

The entire world is operating in a hand-to-mouth fashion not able to think strategically. Working from home has become the norm whilst customers continue to need support. Some brands have boomed, others have pivoted to survive and others have been less fortunate; going bust already. Continually adapting to new norms will be the key to recovery.

01 FLUXX EXCHANGE CREATING YOUR COVID-19 BUSINESS RECOVERY GUIDE

times a week for a catch-up - at best, rather than somewhere to spend 40 hours sat in front of a computer.

It’s hard to see how the accelerated trend for “office free” companies won’t impact the most hyped startup in the world, whose business strategy and cash flow was already hanging by a thread. It’s a bitter development in an already acrimonious rescue plan, which involved pouring billions of dollars into WeWork to salvage its broken reputation. Even if the market was prepared to forgive WeWork’s recent blunders, a blistering shut-down caused by coronavirus has left it’s buildings empty.

Aside from technology (which has now proven to be a myth), one of the things that stopped people working from home before [coronavirus] was the fear that it gave the impression they weren’t committed. Old school management styles rewarded presentism rather than outcomes, so a new modern leader is needed; somebody with acutely good social skills to manage the dynamic of virtual teams and a visionary who is able to paint detailed ambitions for the future but let go of the delivery.

It’s hard to see how the accelerated trend for “office free” companies won’t impact the most hyped startup in the world...

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An empty WeWork in SeoulPhoto by Ra Dragon on Unsplash

EXCHANGECREATING YouR...

Jenny Burns, Fluxx, 2020

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02.

CUSTOMER SERVICE JUST GOT INTERESTING.

Despite vast volumes of employees working from home, customers still need operational support and it’s truly amazing how many businesses have been able to set up remote call centres in a matter of days - something that has been a pipedream for well over a decade. However some companies have struggled both with the security concerns presented by home working and the astronomical peak in call volumes that some brands have experienced. Customers calling British Airways about a refund will find themselves hung up on by an automated system, immediately after they hear the words, “we appreciate your understanding at this time”. Virgin Media emailed its 5.5m cable and broadband

customers to ask them to avoid calling. Banks, insurance companies and food retailers and have all issued similar requests to customers seeking support, directing them online instead.

Other companies have been reconfiguring their processes, often overnight. Serco, a big contractor for the public sector, has moved more than a third of its call-centre workers to home-working. Several insurance firms are preparing for 100% home-based call centres, even if it means providing fewer services over the phone. They are having to make the choice: do we give no service or do we give a reduced service? C19 has certainly accelerated the inevitable future of customer service. Startups who are renowned for better digital experiences because of their lean approach to product design might quickly lose their edge as the slower and more complex incumbents are forced to rapidly adapt and catch up.

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03.

BOOM OR BUST.

Supermarket shelves are stripped bare. Flights are grounded. Workers have been laid off or furloughed. Many parents transformed into primary school teachers. A Conservative government has nationalised the railways and is paying people not to work. And this was only by week two. In less than a fortnight, Britain has experienced the kind of social and political upheaval that normally only comes when you guillotine some royals, or storm a winter palace! Some companies are experiencing strained supply chains due to exponential demand for their products; others sadly have already had to shut up shop.

Unexpected Growth

The surge in demand for home food delivery is well documented. Delivery services like Deliveroo and UberEats are all experiencing increased demand for their services and have taken steps

like offering contactless delivery to protect customers and delivery drivers. This trend towards contactless delivery has created a unique opportunity for delivery robot companies to put their technology to the test. Driverless delivery startup Neolix Technologies recently announced it has raised nearly $28.7 million to mass produce its self-driving vehicles.The pandemic has caused massive disruption in the global shipping of goods. Ports need to screen incoming goods more carefully, leading to delays. Wooden pallets from China are being destroyed rather than reused, for fear of contagion, creating a sudden demand for that resource. With online retailers shipping goods directly to customers, businesses must expand their infrastructure for trucking, warehousing, parcel delivery, fulfilment centres and security. Warehouse workers must stay on the job and even increase the workforce; Amazon said it is hiring 100,000 new workers to beef up its shipping operations, but many of its orders will still be delayed.

With hospitals overstretched by the crisis and mild cases of COVID-19 treatable with paracetamol and other common drugs, pharmacies and other retailers will have to keep well stocked. Also, other health problems don’t stop for a pandemic, and people have all the same diseases they would ordinarily

They are having to make the choice: do we give no service or do we give a reduced service?

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The new call centres

have, with the same demand for pharmaceuticals.

As consumers prepare for weeks of isolation many are stocking up on packaged foods and companies like Ocado and Tesco are reinventing the customer experience to cope with demand in a more sophisticated way. Nielsen reported that “comfort food” sales are spiking, with pastry purchases in the US up almost 20%. Thanks to Coronavirus, a new dawn of supermarket logistics is at hand. Old rivals are going to have to finally scrap 40 years of ‘Operation Checkout’ and kickstart a new system that involves working together to keep the country fed.

Sliding into the unknown

High Street retailers, who were already in a fragile state seem to be the hardest hit. Those who had immature e-commerce setups are definitely feeling the most pain. Laura Ashley, Debenhams, Cath Kidston and Beales have already brought in the administrators.

Next up is casual dining. Again, an industry already squeezed, C19 has probably just accelerated the inevitable. Zizzi have furloughed 6,500 employees, meanwhile Carluccio’s has appointed administrators leaving 2,000 people

Services have taken steps like offering contactless delivery to protect customers and delivery drivers.

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Deliveries are up, contact is down

CREATING YOUR COVID-19 BUSINESS RECOVERY GUIDE

at risk. The Restaurant Group, which includes Wagamama’s, is desperately trying to prevent the Chiquito brand heading for insolvency.

New car sales in the UK have already plunged by 44%, so it’s hard to imagine that there won’t be casualties in the transport industry. Interestingly this is a combination of differing supply and demand challenges. Commercial rental has seen a surge as pharmacies, couriers and cleaning firms are among those organisations that need to rapidly upscale the number of vehicles they operate in order to meet increasing demand from customers. Toyota and Lexus are offering free roadside assistance to all key workers who drive one of their cars or vans, regardless of its age. The firms have teamed up with The AA for the initiative, which will be available until further notice. Collaborative partnerships like this that once might have seemed hard work to pull off are now creating not only essential services but much needed survival lines for businesses otherwise withering. Who would have foreseen a relationship blossoming between WHSmith and Sainsbury’s less than 3 weeks ago - they’ve teamed up to offer a range of fresh food in hospitals. Other companies are completely pivoting in the hope they will still exist in a few months time.

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WHAT IF: INNOVATION IS NEEDED MORE THAN EVER IN A rECESSION.

The full economic complications from the global coronavirus pandemic that are already impacting diverse industries like hospitality, construction, entertainment, retail, food service, and many others are yet to be fully understood. But it would seem to be a safe bet to assume we’re heading for a global recession.

The upside of a “down cycle” is that, in tough economic times, bold leaders can make moves to leapfrog their competitors. But savvy leaders know that this upside is only realized when they are able to guide their teams to a specific type of innovation that takes into account both the expertise and the fear of teams under pressure. The goal is to differentiate your product or service offering in a simple way that leaves your internal teams feeling strong and your customers feeling heard and delighted. For example, for many banks, the last recession became the moment to (finally) respond to their customer’s desire for a simple, online banking solution.

COOs and CFOs have become really good at managing expenses and in times of crisis they rise even more firmly to the challenge; preserving capital and reducing overheads. However, leaders with a disruptor’s mindset view their primary responsibility as making money, not saving money. They understand that retreating from investments is also retreating from profits. With this in mind, while they are reducing debt and preserving capital during tough economic times, they also choose to invest aggressively in the future.

Given the health implications and rising death tolls, things already seem to be quite different from the last two down cycles, however there are some key things to learn and there’s a lot businesses can stop to protect cash-flow, but there are some investments that should be preserved.

1. Continue to gather insight. Listening and responding to the changing needs of consumers and clients as the pandemic unfolds will be key to remaining relevant. Rapid and online research techniques will become the norm, so get good at them or hire someone that is.

2. Motivate your employees. Employee engagement is always important, especially in a crisis, but even more so this time given the large numbers of people working from home. Resist trimming training budgets or adding tasks to leadership ‘to-do’ lists. Being communicative and “virtually” visible is vital.

3. Collaborate. In order to innovate and survive (whichever mode you are in) you’ll need creative thinking, which often comes from the most unlikely places. Be prepared to open your doors to even the most unimaginable relationships - even competitors, stranger things have happened!

Most of all keep momentum going. Cost-cutting is needed but not to the point of no return, otherwise you might not have a business to recover.

Keep your employees engaged and most importantly, collaborating

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04.

PIVOT OR DIE.

Companies have no choice but to adapt as quickly as they can during the Coronavirus pandemic. Some are benefiting from the outbreak through change and innovation, whether that be using their existing manufacturing hubs to create much needed equipment and supplies or spinning up completely new services to keep the public going through lockdown.

Here are our favourite 10:

#1 Dyson, who have no medical expertise and are most well known for manufacturing vacuum cleaners have developed a ventilator - which is a complex and highly specialised piece of equipment – from scratch. It is efficient in conserving oxygen, bed-mounted, portable and doesn’t need a fixed air supply.

#2 Airbnb announced a new global initiative to help house 100,000 healthcare professionals, relief workers, and first responders around the world during the COVID-19 crisis. Airbnb will waive all fees for stays arranged through this initiative.

#3 BrewDog has transformed its distillery in a bid to help with the shortage of hand sanitisers, by creating a new one for giveaways to those in need.

#4 Burberry’s Yorkshire factory that usually manufactures it’s iconic premium beige mac has been ‘retooled’ to make gowns and masks for the NHS.

#5 Signature Brew is paying out-of-work musicians to hand-deliver its ‘Pub In A Box’ product with glassware, snacks, a music quiz, playlists and beer.

#6 Netflix Party allows you to watch movies and TV shows with friends, wherever you are and also has group chat so you can react and discuss together.

#7 Top Cuvée, normally a neighbourhood restaurant in London and a bottle shop with a great bar, becomes Shop Cuvée delivering food, drink and toiletries to their customers.

#8 The UK’s Department for Transport is exploring new transportation modes including e-scooters and e-cargo bikes, as well as bringing the on-demand model (popularised by services like Uber) to buses and other public transport alternatives, as well as using drones for medical deliveries. It has also announced funding of £90m for three new Future Transport Zones to trial these new services.

#9 ChargedUp, the Europe’s specialist in phone charging stations created CleanedUp for venues to provide hand sanitising facilities for their customers, to keep everyone safe and give confidence during and after the COVID-19 crisis.

#10 Leon, the Healthy fast food chain, is keeping it’s doors open and serving meals to NHS workers at a 50% discount.

A BIT ABOUT THE AUTHOR.

Jenny is a Partner at Fluxx. As a creative thinker and positive disruptor, she specialises in brand, marketing, communications, customer experience and behavioural and cultural change, as well as having deep industry expertise in retail, banking, insurance, telecoms and energy.

Get in touch, jenny.burns@fluxx.uk.com.