{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
Are you ‘fit for recovery’?
Are you positioned to emerge stronger from the COVID-19 ‘lockdown’?
What will it take for you to win in the post COVID-19 market?
What is your plan for recovery?
Now is the time for CEOs to prepare their organisation for ‘Economic Recovery’ in a world changed by COVID-19
Illustrative COVID-19 economic impact
Depth of economic impact will be influenced by the spread of the virus, the duration and impact of public health and government response
Variables include infection and death rates, scale and scope of lockdowns, trading halts, closed borders and citizen responses
The shape and duration of the ‘Management curve’ is driven by the public health response and the speed at which Australia can find its exit point
This stage is about balancing health and economic outcomes until an effective treatment, vaccine or natural immunity point is reached
The shape and speed of the recovery curve will be influenced by government and industry response after herd immunity or an effective treatment has been achieved
Influenced by global issues such as how other countries are tracking in their management & recovery
Forces of change shaping our future
The pace of change triggered by COVID-19 is unprecedented in peacetime. Some changes are undoubtedly temporary, but there exist a series of forces that will shape our nation over the coming years.
People
Consumer behaviour Productive, flexible & distributed working Industry consolidationEconomy
Greater government involvement Debt and capital TaxSocial contract
Accelerated digitalisation and data reliance Resilient secure supply chains Migrations2008-09 crisis showed that rapid recovery drives sustainable competitive advantage - leaders in 2010 were leaders in 2013
Revenue Growth of ASX companies¹
(FY07-FY13, Index: 2007 = 100)
EBITDA Growth of ASX companies¹
(FY07-FY13, Index: 2007 = 100)
1 Analysis considers 135 companies within the FY09/10 ASX 300 between 2007-13 with revenue growth within +/- 100% each year. Companies’ revenue and EBITDA growth weighted in each category based on 2007 revenue.
Big banks excluded from analysis | Source: Capital IQ, Strategy& analysis
Leaders vs. Others
Companies which recovered fast in 2009-2010 are Leaders
Leaders sustained their revenue and EBITDA growth through to 2013
Leaders were mostly smaller companies with some large firms (e.g., RIO, QBE), skewed towards the Energy, Financial, Materials, Health and Utilities industries
An Australian home entertainment retailer focused on improving productivity, reducing SG&A expenses as a percentage of revenue by over 100 bps over 2 years whilst revenue climbed over 50%
A global electronics company accelerated digitization to increase operational efficiency by investing in R&D and technology capability to decrease labour dependency
A multinational metals and mining company divested $8Bn of non-core assets in 18 months to Aug-2009 and reinvested in value accretive mine projects (170% CAPEX increase in 2010-11)
An Australian provider of insurance engaged in opportunistic M&A activity, completing 4 acquisitions in Australia, increasing profits and further consolidating their position within a fragmented post-crisis market
Companies need to act rapidly and decisively - decisions made now will have a significant impact on their post-COVID success or failure
Each organisation’s recovery pathway and required actions will depend on its COVID-19 entry and expected exit trajectory
COVID-19 Recovery Pathways and Actions
Fit for Recovery provides a powerful and complete approach to be ready for the new normal and emerge stronger
What actions should companies take to become Fit for Recovery?
Build Trust
Australia’s trust in institutions has deteriorated, with business being asked to do more by employees and regulators.
- Deliver trusted value beyond profits
- Understand the impact of your choices on your ecosystem
- Seize the moment to build trust in the business with customers and stakeholders
- Emerge stronger and contribute to a more productive and resilient economy
Read more
Radically transform your cost structure
As organisations consider the cost challenges raised by COVID-19, they should be cognisant of prior learnings and apply a structured approach.
- Zero-base cost structures and re-prioritise capital program
- Test genuine “lights-on” costs
- Make hard calls on shared services and the IT stack
- Assess and optimise working capital and cash flow management
- Capture footprint strategy opportunities
- Reduce headcount
- Review corporate overheads
Read more
Rapidly iterate and refine strategy
Regardless of the magnitude required, organisations need to rapidly iterate their ‘right to win’ through a capabilities lens.
- Revisit your strategy and be clear on your distinctive capabilities
- Understand degree of COVID-19 disruption and responses for different scenarios
- Identify and monitor the triggers for strategic choices
- Identify and target most viable segments and products
- Engage at-risk customers and suppliers
- Understand expected demand profile
- Identify M&A opportunities (divest non-core / unprofitable) and asset strategies
- Determine your new competitor set
Read more
Build capabilities
Organisations will need to focus on building people, digital and enterprise capabilities in phases to succeed post COVID-19.
- Build differentiating capabilities aligned with post COVID-19 landscape
- Accelerate digitisation and automation
- Build the digital fitness of the workforce and understand the New World, New Skills impacts
- Rapidly redeploy and reskill
- Develop data analytics
- Build enterprise agility and bizdevops capability
- Grow and nurture partnership ecosystems
Read more
Activate culture-led behaviour change
Deeply understanding cultural realities uniquely positions organisations to harness strengths and navigate recovery.
- Understand cultural realities - bright spots and pain points; Actively engage leaders to identify COVID-19 catalysed new ways of working
- Define behaviours to sustain and own the actions to shape the future
- Connect, motivate and inspire
- Create the environment and deploy digital assets to reinforce habits and measure behavioural adoption and stickiness
Read more
Reimagine your operating model
The post-crisis reality will challenge today’s operating model across a number of dimensions.
- Use contemporary, digitally enabled business models
- Adapt to flexible and remote working
- Identify and address global/regional vulnerabilities
- Understand and adapt to shifting government and regulatory mandates
- Transform the front office and customer experience
- Redefine functional models
- Build “smart” resilient supply chains
Read more
Do you feel ‘Fit for Recovery’?
Focusing questions
Virtual ‘Fit For Recovery’ Engagement
Stakeholder Alignment
Our methodology is specifically designed to bring diverse and potentially competing perspectives together and give people the energy and permission to develop solutions together in a virtual environment.
Showcases and Steering Committees
Our process enables people at all levels to contribute to designing, building and testing solutions, cultivating ownership and commitment.
The Working Group
A Visual Management Board and virtual collaboration space allow the team to have backlog planning, stand ups and retrospectives, allowing them to bring the benefits of an agile approach to the program of work.
Immerse & blueprint followed by rapid micro-strategy sprints allows meaningful action despite the uncertainty
Example Digital Assets
Connected Digital Enterprise
Connect and Perform
Global Trade Analytics Platform
CultureTech Measure Behaviour Adoption and Change
Digital Twin
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Please reach out to the cross-industry PwC Fit for Recovery team if you would like to discuss further
The PwC Fit for Recovery Team
Varya Davidson
Partner
Varya leads the firm’s Productivity Integrated Solutions business and Global Culture, Leadership and Change Capability. She brings a depth of hands on experience from leading large scale, time sensitive, complex transformations. Her passion is working with culture to unlock value.
E: varya.davidson@pwc.com
P: +61 478 303 103
Ben Gilbertson
Partner
Ben is a Strategy& Partner who specialises in Government, Higher Education and in asset- intensive industries such as industrials, mining, oil and gas, agriculture and defence. Ben has experience in Fit for Growth, business strategy and operations strategy.
E: ben.gilbertson@pwc.com
P: +61 410 685 546
Shad Ngam
Partner
Shad has extensive consulting and operational business experience with over 20 years in financial services across Australia and Asia. He has a focus on leading strategy-driven transformation in complex environments, combining his corporate operational and transformation experience with rigorous strategy consulting discipline.
E: shad.ngam@pwc.com
P: +61 410 420 939
Rebecca Smith
Partner
Rebecca has over 20 years experience in driving complex transformation programs, leads the firms “The Difference” capability and our Future of Work team. She brings a human-centred approach to working with diverse stakeholder groups to challenge and create alignment.
E: rebecca.l.smith@pwc.com
P: +61 426 815 524
Ashish Sharma
Partner
Ashish has over 18 years experience in Financial Services with a background in Digital & Operations. He has advised leading Insurers, Wealth management firms and Banks in Australia, SE Asia and Middle-east. He leads Fit For Growth in Australia.
E: ashish.sharma@pwc.com
P: +61 478 312 047
John Cunningham
Partner
John has 20 years experience in business and operations strategy, supply chain, and performance Improvement. He has led projects in the resources, utilities, energy, heavy manufacturing, and defence sectors focused both on cost and growth.
E: john.a.cunningham@pwc.com
P: +61 419 120 844
Tim Jackson
Partner
Tim is the leader for our Public Sector consulting business across Asia Pacific and the Americas. He has over 25 years of experience, consulting primarily to government institutions including defence, immigration and the higher education sector.
E: tim.jackson@pwc.com
P: +61 413 058 080
Simon Gillies
Partner
Simon has over 25 years experience helping clients in the consumer goods, telecommunications and industrial sectors to successfully transform their organisations and meet their strategic objectives. He specialises in corporate strategy development and driving business improvement.
E: simon.gillies@pwc.com
P: +61 408 569 746
Mahan Perera
Senior Manager
Mahan has over 11 years experience in various industries including insurance and banking. He had led projects covering strategy, transformation and organisational design, operational improvement and Fit for Growth. He has worked in Australia, UK and Europe.
E: mahan.b.perera@pwc.com
P: +61 434 685 644
Dave Shurey
Director
Dave has over 13 years of strategy, operations and technology consulting experience in Australia, New Zealand and SEA. He focuses on Technology, Media and Telecommunications organisations and has led multiple engagements in cost outs, operating model, and digital transformations.
E: dave.shurey@pwc.com
P: +61 428 440 915
Michael Thompson
Director
Michael has 15 years experience specialising in the public sector. He specialises in scenario modelling of policy and operational changes, and business continuity and resilience strategies, across tax, trade, national security spaces and immigration.
E: michael.d.thompson@pwc.com
P: +61 408 927 557
© 2020 PricewaterhouseCoopers. All rights reserved. PwC refers to the Australia member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Liability limited by a scheme approved under Professional Standards Legislation.