COVID-19 started as a health crisis, which quickly evolved into a global economic crisis at a speed and magnitude we have not seen in our lifetime. The ripple effects are still unfolding on a global scale and it is unlikely that the true impact of this pandemic can be measured until the situation stabilizes. But once we come out of this challenging and uncertain time, how will we recover? Will we go back to business as usual, or will we see enduring changes at the individual, organizational and government levels?
We see four stages that outline the path through to recovery:
All organizations are simultaneously impacted as professional and personal lives are disrupted. Volatility and uncertainty permeate society as the primary focus is on limiting damage to lives and livelihoods as we weather the unprecedented storm.
Controls loosen as contagion spread is contained. Consumer demand begins to return but is constrained by lost wages, investment losses and recession fears.
Anxiety passes and hiring, investment and consumer sentiment cautiously improve. Recovery paths for organizations will vary based on ability to limit damage from the Reaction stage, length and severity of recession, post COVID-19 industry demand and willingness to adapt.
- New Reality
A number of enduring shifts will remain post recovery as many learnt behaviors born out of the crisis will become central to the new normal.
The onset of COVID-19 has exposed existing weak links across industries, government and in our economy. The urgency and importance of addressing these weak links has radically shifted and many decisions and discussions have been brought forward. Here are our insights covering key themes that provide context to the changing environment that makes up our new reality: