There is nothing like a global crisis to force businesses to reflect and innovate - and there has been nothing like the Covid pandemic in our lifetimes. Since governments around the world first started locking down their nation’s citizens, businesses and institutions, we have been encouraging business leaders to ‘build back better’.
The phrase – a term for an approach to disaster recovery – has grown in popularity in recent months and was even adopted by the UK’s Conservative Party and Joe Biden’s Democrats in the US. But its transition to political slogan invites two questions: what do we really mean by it and how can we - both individually and collectively - turn an aspirational aphorism into on-the-ground reality?
What do we mean by ‘build back better’?
The phrase was first used by the United Nations in 2004 following the Indian Ocean tsunami. In 2015, Build Back Better (or “BBB”) became part of their official “risk reduction framework” to help prevent and aid recovery from future disasters. But never has the phrase felt so apt as it does right now. The pandemic, climate change, the rise of populism, China’s growing influence, and the wider political uncertainty provides a backdrop of geopolitical instability that few anticipated whilst the steady march to globalism looked inevitable.
Innovation - borne of necessity
The economist Milton Friedman said: “only a crisis - actual or perceived - produces real change”, and examples of crises accelerating innovation are well documented. The horrors of the First World War, for example, bestowed us tea bags, stainless steel and sanitary towels. Throughout the pandemic we have been highlighting some of ways fleet-of-foot businesses have responded to the crisis - from distilleries making hand sanitisers, to organisations that - almost overnight - embraced new technologies that made them faster, more efficient and more relevant to today’s world.
As for why a crisis stimulates innovation, there are several theories. For me, it is the combination of a shared sense of purpose, the need for urgent action (and less concern about the risk of failure), investment in R&D, collaboration (of governments, industries and businesses) and the urgency to find a swift solution. This mix of factors provides the accelerant to the creative sparks that are always present, but so often thwarted in ‘normal times’ by distractions, bureaucracy or risk aversion and political posturing within organisations.
We have witnessed the service environment changing rapidly over the past year. Physical restrictions have necessitated swift changes to keep offerings and modes of delivery fit for purpose. Organisations have responded with remarkable ingenuity to this challenge. We have seen many innovations borne out of necessity prove to be more effective than their predecessors. This crisis will leave a permanent mark on the way customers engage with businesses – and it is crucial we understand who we are serving and why.
Covid-19 has accelerated patterns we had already seen emerge pre-pandemic. As purse strings tighten, customers have become even more discerning about what they buy and where they buy it from. My advice remains the same as it was: build trust through your business practices and communications, ensure you take a customer-centric approach to product development and do the right thing through your actions, not just your words.
Agility is the key
Back in June 2020 the Institute of Customer Service published this piece on developing a culture of agility and innovation. It proved to be one of our most popular articles, setting out how organisations can lay the right groundwork to encourage: “Innovation and agility manifest themselves in multiple, incremental improvements as much as in disruptive technologies or major investments. Innovation is more than an organisational function or set of capabilities: it is a cultural mindset underpinned by insight, curiosity, employee engagement, recruitment and development, knowledge and data resources, processes and collaboration.”
In short, a scientific and data-led approach, combined with an agile corporate culture is vital. But for long-term success and stability, this needs to be balanced with sound governance and business structure.
Good governance, structure and a long-term outlook is required – red tape is not. The changes organisations were able to make so quickly as the pandemic started to bite demonstrated that much bureaucracy can be avoided when needed. As we build back we would like to see a greater emphasis on pragmatic responsiveness to prevailing conditions at the expense of unnecessary red tape and process.
That said, another lesson that this crisis has taught us is that businesses need appropriate governance and structure to be productive and secure. This is particularly true in times of unpredictability and volatility. Rainy day funds need to be accessible, it can’t be a free-for-all, and a laissez-faire management approach will likely result in chaos. It is essential that there is clarity over who is taking responsibility for which actions and areas, and that there are suitable checks and balances in place.
What’s the prognosis, Doc?
For all the devastation the pandemic will have wreaked, we will inevitably come out of in stronger in many ways: the innovation investments will continue to pay dividends.
Businesses and governments will be better prepared for future shocks. Workforces and processes will be leaner, more agile and more efficient. And customers will recognise the organisations that served them well when they needed it most. The reward will be long-term loyalty (so long as service levels are maintained), greater advocacy and – to put it simply – better financial results.
Jo Causon is the CEO of The Institute of Customer Service, based in the United Kingdom.
Recommended further reading: Customer Experience Innovation - How to Get a Lasting Market Edge