Lim Wei Wei says leaders need to recalibrate their businesses more frequently in these challenging times

Baker Tilly Partner and Governance and Risk Practice Leader joins the panel of judges at this year’s Management Excellence Awards.

Lim Wei Wei heads the Governance & Risk Services team in Baker Tilly (Singapore), a top ten international network of accountancy and professional services firms.

He specialises in corporate governance consulting, strategic management, internal audit, investigative reviews and risk management. Having consulted in a broad range of industries, including manufacturing, oil & gas, construction, retail & hospitality, financial services and non-profit organisations and across a number of jurisdictions throughout the world, Wei Wei is also passionate about sustainability issues.

In an interview, Singapore Business Review chatted with Wei Wei on his views on how businesses can better cope in the light of the Covid-19 pandemic situation,

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?

I started my career conducting financial audits and risk consulting with large sized international professional services firms then moved on to a stint setting up an inhouse internal audit department with a NYSE listed Chinese manufacturer before returning to Singapore, joining Baker Tilly.

The most noteworthy part of my career history has to be my stint working overseas in China understanding the different culture and working environment, trying to implement international working practices across the various business units. The stint has certainly helped bridge my understanding of the intricacies of cross culture working relationships and has benefited me greatly after my return from China. The better appreciation of culture and differences in business environment along with understanding of the Chinese regulations and business practices has helped me to better service the requirements of our Chinese clients.

The COVID-19 pandemic has led to demand and supply shocks to many businesses and industries. Many industries and sectors are affected in many different ways and the impact varies across industries and sectors. Even before the pandemic struck, leaders were already bracing for a VUCA (volatile, uncertain, complex, ambiguous) business environment.

The pandemic has taken this to a new scale and many business leaders are now scrambling to re-calibrate their businesses to the new normal environment. Given the changes in consumer preferences and new working environment which the pandemic has brought about, businesses are fast adapting as the situation keeps evolving. Many leaders are realising that the 5 years plan that they had devised previously is now obsolete and it is ever important to stay relevant and adaptable through the implementation of “flexible plans” instead. For many leaders who are in the drivers’ seat, their left leg is now on the clutch, getting ready to shift gears, depending on the situation. Constant re-strategising and re-prioritising is what leaders have to do.

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?

For many businesses and industries, the pandemic has hastened the transition from a bricks and mortar business model to one of online business operations, sales and services. While it looks likely, things may not revert back to pre-pandemic practices once the pandemic passes and the following are considerations for owners preparing themselves while the economy gets on the road to recovery:

Respond to changed customers’ needs- A new normal warrants new ways of serving customers’ needs, which could be fundamentally different from pre-pandemic.

Digitalisation- The pandemic has hastened the speed of digitalisation and the trend is definitely set to continue. Companies will need to embrace the trend to stay ahead of the curve.

Newer and better ways of working and collaborating- The pandemic has spawned new and sometimes better ways to collaborate. Some of these could result in cost savings for business owners which provide long term benefits in terms of reduced rentals, electricity bills, efficiency and productivity etc. Offshoring and outsourcing operations may be on the cards for many organisations looking to harness cost-savings.

Re-calibration of supply chains- Many businesses have faced supply chain and logistical disruptions in the pandemic. Many of these supply chain arrangements need to be re-configured for it to be more sustainable in the long term.

Cash flow planning and management- Despite the numerous government support and subsidies, many businesses will continue to grapple with cash flow problems resulting from slower collections, lower inventory turns, financing and working capital issues. And hence more robust and long term planning around cash flow is becoming ever more critical.

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

Throughout the coronavirus pandemic, it is also important to support employees and stakeholders during these tough times. Some ideas include:

Being realistic on expectations on employees- It’s after all a pandemic and recession, it’s natural for business to be slow. Pragmatic business owners and leaders will acknowledge the fact and realign their focus to employee development, readying their employees for the time when the economy picks up.

Adopting practices that can minimise job losses- New work structure, shorter working hours, flexible working and compensation are some of the steps that companies can take to avoid job losses.

Prioritise helping local suppliers and customers- Some measures could include paying suppliers on a prompt basis, purchasing from local sources whenever possible and thinking of creative ways and means to help customers cut costs, including perhaps offering financing alternatives.

More active community engagement and assistance- For companies not as badly affected by the impact of the coronavirus, steps could be taken to help out local communities. For instance, provision of sanitation equipment/supplies, providing logistical support for distribution of essential supplies, donations to help out those impacted or employee volunteer programs in place to help with local charities or government initiatives. These measures will also help put the corporation in a good stead as an excellent corporate citizen, contributing to its branding efforts, and positioning it for the long term.