BDO executive director shares where organisation leaders can focus on recovery

Roger Loo is one of the judges for this year’s SBR Management Excellence Awards.

With more than 20 years of experience in business intelligence and management consulting, Roger Loo, executive director, management consulting services at BDO, has a proven track record in areas that include market intelligence and brand research, feasibility studies, strategy consulting, internationalisation, family businesses, and performance management.

His global expertise in management consulting includes countries such as Brazil, China, Taiwan, Myanmar, India, Australia, USA, Indonesia, United Kingdom, Middle East and North Africa region.

As one of the esteemed judges in the SBR Management Excellence Awards 2020, SBR chatted with Roger as he shared his observations in near-term challenges caused by the pandemic, insights on actions that business leaders can take as they support their organisation’s recovery, as well as how companies can respond to the crisis by transforming and building their HR competencies and structures.

Which particular markets or sectors are your main focus? Can you share with us your work experience or any backstory that has contributed to your professional career?

Being fortunate enough to gain over 20 years of experience in business intelligence and management consulting, I have the opportunities to be involved in many areas of capabilities building of companies that include market intelligence and brand research, feasibility studies, strategy consulting, internationalisation, family businesses and performance management. My experiences in management consulting includes clients in countries such as Brazil, China, Taiwan, Myanmar, India, Australia, USA, Indonesia, United Kingdom, Middle East and North Africa region.

Having lived in different parts of the world – from Australia to China to the United Arabs Emirates, the life skills acquired and developed over time allowed for deployment of a more objective and critical view on business issues for my clients. Often my role as a “consultant-in-residence” allows me to focus and impact across a longer time frame and this seems to work best for me especially when working with emerging businesses and next generation leaders. The key areas of focus revolve around strategy, governance and talents development and often these take time to develop and adopting a long term prospective to these capabilities building is key to success for many of my clients.

How are leaders responding to the pandemic affecting their operations? For those whose companies and industries that have been badly hit, what do owners need to consider on the road to recovery?

As the world slowly starts to come to terms with the COVID-19 pandemic, the pressure on digitalisation and strategic thinking become more of a necessity rather than a want for many businesses. Many businesses are now at the cross-road of their development, making massive decisions that will have immediate and long-term survival implications.

From supply chain realignment and workforce adjustments to debt restructuring and cash-flow management, the importance of knowledge management is commonly undermined in organisations, especially Small and Medium Enterprises (SMEs). Comprehensive knowledge management involves the selection and effective utilisation of information that would enable the organisation to operate seamlessly whilst allowing learning and strategic planning to take place.

Two inevitable near-term challenges:

Meeting immediate cash-flow obligations

The first is simply to keep the flame alive. Whilst many businesses have adapted to new “normal” in dealing with stakeholders, most business leaders recognise that they are still far from ‘optimising’ their business model and keeping a tight control on cash-flow management is now the key to stopping “financial leakages” and focus on “preservation” for the rest of the year. Receivables will be slow or non-existent for many, potential bad debts as well as slowing down of overseas trade etc. will impact their ability to meet their basic cash-flow requirements in the days ahead. The critical thing is to achieve zero cash outflow and preserve cash for the uncertainty ahead.

Preparing and Delivering strategic value thereafter

The second inevitable challenge is to deliver on the aftermath’s expectations. Every business is seeking the “light at the end of the tunnel” after COVID-19. Businesses are keen to understand, yet often unable to grasp, what has changed as a result of the pandemic—and what the new business landscape will look like in its aftermath. They must recognise strategic management and planning will play a pivotal role in helping their businesses survive and thrive after the crisis has abated. The “promise of the new dawn” is now getting a voice at the strategic planning table, and businesses are under pressure to prepare and be ready to deliver upon the return of business.

Shift the Focus to immediate priorities and opportunities

Rather than sitting around and waiting to see what changes the business will make after the pandemic, many onwards looking businesses are embracing the crisis as an opportunity to drive much-needed transformation in their business models. They recognise that their existing ways of working are no longer relevant or applicable in the new digitised and rapidly evolving business environment. Many of them understand the need to rethink their strategies, financial models as well as talents needed to bring them to the next “new dawn”.

We would like to suggest there are three actionable items that all business leaders can focus on as they support their organisation’s recovery.

1. Understanding and adopt digital acceleration

Many businesses are rolling out a series of uncoordinated “off the shelf” solutions aimed at quickly digitising some of their existing old processes and operating models, yet missing the complete picture that taking a longer-term strategic approach to digitisation is the much preferred method. They need to understand the available technologies for digitalisation and chart those technologies to the pain points they experienced over the years. After which they need to work with the broader organisation to push towards unified and integrated solutions that help solve data, digital and decisional problems across the businesses. As some businesses choose to digitise their businesses out of necessity, good businesses will do well to heed the advice that the notion of “understand the needs and then implement the changes” will go a long way in ensuring the success of the digitisation process.

2. Outsource to reduce people dependency

The pandemic has forced many business functions to do more with less employees out of necessity – this is especially true when more than 50% of the workforce are now working from home rather than in the office. That is causing many businesses to fundamentally rethink their value proposition and operating models. In some cases, critical business functions are finding ways to reduce the workload by automating manual processes and leveraging on digitalisation. Many businesses have come to the realisation they can no longer get everything done on their own and are looking for ways to relieve themselves of “own people” entirely. Processes such as accountings and human resources once considered core and critical are rapidly being outsourced. Tasks that once required a full-time employee in an office may now be farmed out to casual ‘gig economy’ workers.

3. Develop a business strategy

Many businesses are gathering their best brains in the organisation to plot the roadmap required to ensure their business’ recovery and survival, and in some cases, leading businesses are engaging external management consultants to provide additional the insights and intelligence required to drive strategy. External consultants are supporting the businesses by sharing and deriving scenario planning and delivering much needed advice on the various strategic options available. They are helping the business understand the long-term implications of their business models, financial health, branding and marketing strategies as well as their roles in the long term growth roadmap of these businesses.

How can the management support their employees and stakeholders during these tough times?

As economies begin to reopen, companies have commenced to restart and rebuild their operations. The challenge is complicated with uncertainties of how COVID-19 will continue to impact economic activities, consumer behaviours and businesses. Companies would need to respond by transforming and building their HR competencies and structures that allow them to prepare for unforeseen circumstances.

1. Flexible work arrangements.

Flexible work arrangements have been up and rising in the future of work. This is in addition to our government encouraging companies to take this up through the introduction of WorkLife Grant on flexi-load, flexi-place and flexi-time implementation. With the developments of COVID-19, this shift has accelerated as companies are required to implement several flexible work arrangements such as staggered working hours and working from home. Through such arrangements, companies observe how employees can continue to work effectively whilst a larger number of employees also will begin to request for such flexible arrangements from their employers. As such, flexible work arrangements will shift from a company benefit into being an integral part of the role being hired for.

2. Technology

In order to adapt to flexible work arrangements, companies have to leverage on technology to adapt to the new ways of working. In order to sustain productivity, companies have to embrace the following:

• Technological gadgets like laptops and mobile phones to support employees in completing their work more effectively.
• Communication platforms to facilitate ongoing discussions amongst employees as well as to customers.
• Cloud-based applications to enable employees to access information related to their work in any location especially in the comfort of their own homes. Employees are expected to embrace technology to keep up the momentum in changes towards work.

3. New Workplace Concepts.

With companies expecting to embrace flexible work arrangements especially having employees working from home, this suggests that not all the workforce have to be in the same space. This means potential savings in renting a smaller office space, spending less on renovations and maintenance. Companies should also consider designing the office space to facilitate good communication between employees working from home and in the office. This also includes setting up meeting rooms with video conferencing tools.

4. Innovative and engaged culture.

With lessons learnt through COVID-19, companies need to learn that they need to embrace uncertainty by having an innovative and engaged culture to better manage crises. Given the tendency to become distant to employees as they are away in their homes and lack of face-time, companies should reach out to employees to communicate emotionally and show genuine concern to their well-being such as through virtual coffee chats that do not discuss work. A more engaged workforce can in turn discuss effectively with one another to derive creative solutions and adaptability towards changes in the work environment. The adoption of these future work practices and trends have expedited with the occurrence of COVID-19. Companies have to evaluate their approaches to work to brace themselves in potential uncertainties and changes to come in the future in order to sustain their businesses.