KPMG's ASPAC leader shares how companies can protect their staff and business

Irving Low joins the panel of judges at SBR Management Excellence Awards 2020.

Irving Low, KPMG's ASPAC leader for board advisory services practice, leads a regional ASPAC team working together with the global governance, risk and compliance team, looking at global changes in board and corporate governance practices.

Irving has been with KPMG for over 27 years, having worked in both the London and Singapore offices. His focus is varied across many industries, such as property development and construction, manufacturing, insurance, engineering, and financial services.

He has undertaken numerous corporate governance reviews for both public and private organisations in light of the renewed focus in this area. He is a frequently invited guest and speaker at public forums on corporate governance.

In an interview, Singapore Business Review sat with Irving as he shared his insights on how company management can support their employees and stakeholders during these tough times.

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?

At KPMG in Singapore, we see strong demands in the following sectors—government, financial services, consumer and retail, as well as telecommunications and media.

KPMG in Singapore has been able to provide opportunities which enabled a holistic and continuing journey of learning and self-discovery. I started in external audit for 4 years in SG before taking a secondment to the UK office for about 2 years.

In the UK, I was exposed to consulting in the financial services sector, thus I have a great experience in large global accounts. Upon returning to SG, I decided to focus on advisory and have been in advisory since.

My key practice areas are corporate governance, enterprise risk management, and internal audit. I earnt a lot from the clients, in particular the varied industries, c-suites, and board members and have undertaken many engagements, which must have amounted to hundreds of years of cumulative experience.

I also took on roles beyond the technical areas as head of people, performance & culture (PPC)—KPMG’s HR-equivalent where I learnt how to manage people-related issues and understand people strategy. I was also the head of clients and markets where I learnt to formulate, from an organisational-wide perspective, go-to-market strategies, how to acquire and defend new accounts, and was Involved in industry committees which adds to learning of a macro nature.

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?

Recovery patterns are influenced by many factors, including how quickly demand will recover (from slow to fast) and the degree of permanent change to the industry’s underlying economics or value chain (from low to high).

Some companies will be in “Fight for Survival” mode, others will be in “Never Waste a Crisis” mode, whilst some industries/companies will struggle to recover due to “permanently” lowered demand for their offerings, insufficient capital to ride out extended recession, and/or poor digital transformation execution. They may need to undertake more investments, or more transformation.

Meanwhile, other industries/companies will recover along a protracted path, requiring capital reserves to transform operating models and keep up with new consumer expectations.

Whatever form the recession takes, companies that move forward and invest in the future do better than those that "hunker down." The greatest challenge indeed for many companies will be learning to manage in the post-COVID-19 environment.

Operational resilience must be driven from the Board with clear ownership and accountability to drive differentiated investment decisions; boards should set clear impact tolerances and enterprise-wide resilience thresholds, then measure and report against set tolerance limits.

To navigate an uncertain future, companies need to get serious about war-gaming, scenario planning and other approaches to decision-making that are used under high levels of uncertainty.

Agility is also key. According to KPMG 2020 CEO Outlook COVID-19 Special Edition: Singapore Edition, a majority of CEOs in Singapore (72%) have seen their new digital business models accelerate during the COVID-19 period. There is also a significant shift in CEOs’ priorities that we have witnessed over the last six months, reflecting the agility with which CEOs had to deal with the challenges of the pandemic. Organisations that combine rapid prototyping with design thinking are able to make quicker decisions, bring greater transparency and purpose, and align more holistically on a single strategic vision.

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

Companies need to be nimble to protect staff and the business. The priority when the crisis struck is to ensure that people are safe and then implement business continuance plans, or work out how to react and cope in the new environment. Companies must manage risks that encompass compliance, cost, capacity, capability and connectivity. A real need to focus on employees first and foremost - ensure safety - through digital collaboration tools - this will help keep business going. Next is to focus on customers by taking the opportunity to transform and re-engage on new platforms. Finally, there needs to be a strong focus on ESG in all decisions made - to act ethically and responsibly, etc. Purpose driven leadership is very important.

More details as follow:

Increasingly savvy consumers: The new customers are more financially constrained and digitally savvy

• Changing customer preferences and expectations will result in an increased focus on pricing, ease of access, and trust.
• Customers are at the centre of business strategies with an increasing focus on trust, safety, reliability and social responsibility.

According to the KPMG 2020 Customer Experience Excellence (CEE) Report, three distinct trends in the transformation of Customer Experience were noted: 

• Getting personal: COVID-19 is a global health crisis with far-reaching implications on the world economy. With that, there has been a change in demographics, lifestyle, needs and wants, behaviours and shopping patterns amongst Singapore consumers. Companies will benefit from analysing these data to make better decisions in relation to individual consumer needs in a brand-relevant and value-adding manner.
• Earning trust through integrity: In these uncertain times, coupled with the global incidences of corporate governance failures, customers want to feel comfortable and safe with whom they deal with. Singapore consumers are increasingly scrutinising companies and the value they offer beyond the provision of goods and services. They want to know that their personal data is protected, how brands are responding to demands of COVID-19, and how brands are adhering to ethical, clean and sustainable practices.
• Increased expectations of service: As COVID-19 has accelerated the digital transformation of many companies, newly digitalised companies now find themselves on the same platform as other companies who have perfected their delivery standards. These new digital companies need to rethink their strategy and find faster ways to respond and deliver to customers.

Digital here. Digital now: Accelerated digital transformation and integration to prevent future crises.

• COVID-19 has caused businesses to embark on end-to-end digital transformation.
• Digital transformation, integration and collaboration will be at the heart of most organisations post-COVID-19, allowing businesses to become more agile to support business model transition.
• Increased risks of remote working – operational bandwidth and capacity, separation of teams, fraud, technology and culture – will further increase the need to digitise operations.

Agile operating models are a priority – companies need to pivot quickly and rethink entire operating and supply chain models.

• Operational transformation and robust supply chains will build resilient businesses for the future.
• Organisations need to connect their front, middle and back offices to deliver to stakeholders and strengthen resilience.
• Remote working as the ‘new norm’ will drive re-evaluation of workforce management and the entire people infrastructure; companies will need to consider talent shortages and reskilling.

The rise of ESG - Purpose-driven Leadership.

• Companies will need to embed ESG and sustainability in their strategy, business and operating model and this will escalate to the boardroom due to increased expectations on issues such as climate change, employee health and safety, workforce policies and job security.
• Companies will be evaluated on growth in profits and also in trust, ensuring the purpose of an organization is in line with customer values and expectations.

Additionally, we empathise with the mental challenge our staff may face, and we support them by ensuring we are constantly checking in on them.

Compounded by economic and competitive pressures, companies may be tempted to ignore or work around their cultures, values and purpose. As more staff move to remote working, it’s important for senior leaders to put plans and actions in place to safeguard the mental health of their workforce, and themselves.

Job demands may be influencing the quality of employees' mental health as they struggle to keep up with expectations of them at work and at home, and other factors that have come up in this new reality. Employers that address these head on, such as offering them support resources and acknowledging their value to the organisation, will in turn create opportunities for productivity and collaboration. Some other ways include prompting social connectedness in a virtual space, and establishing safe space.

At KPMG in Singapore, our internal comms team sends out regular communications on WFH tips, ways to live sustainably, and how to stay healthy. A new People Xperience page that aims to serve as a one-stop platform for all staff to access the latest engagement-related happenings and resources, is set up. As a firm, we want to make sure that our staff are well-taken and engaged in every aspect from well-being, social, diversity and learning throughout their time here.