Council Post: Five Lessons Every Organization Learned In 2020

By Evan Nierman, founder and CEO of crisis management firm Red Banyan, which provides strategic PR consulting to clients around the world.

As we head into the fourth quarter of a tumultuous year, smart organizations are drawing upon lessons learned and seeking to finish the year strong. Organizations that, through sheer misfortune, saw their industries crippled have been forced to pivot. Many businesses that are unwilling or unable to adapt to the sea changes that have occurred are still floundering.

Here are five lessons that the Covid-19 pandemic taught us and how every organization can use them to ultimately prevail and reach new heights.

1. Crises Happen

Let’s face it: Nobody is immune. It’s inevitable. You can either plan in advance or be knocked for a loop and surprised. Virtually every organization on the planet was impacted in some fashion by Covid-19. Companies that had crisis or continuity plans in place have weathered this storm more effectively and with less stress than those that were caught off guard. As the saying goes, plan for the worst and hope for the best. It’s good advice because it works. Companies that anticipated disaster before one occurred got back to business much more quickly using creative thinking and flexibility.

2. Culture Matters

Organizations with strong workplace cultures held steady. They were able to trust their employees to adapt and work remotely, productively and independently. But this type of workplace culture doesn’t come for free. It takes time to build but is certainly worth the effort.

A successful work culture unites the members of the team and actually brings them even closer together in a time of crisis. Are your workers responsive to change? Is there strong leadership and high employee morale? Employees who are recognized for their hard work are more likely to pitch in when the going gets tough. When Covid-19 shut businesses down and the going got tough, it was the organizations with strong cultures of accountability and collaboration that were better positioned to figured out ways to make things work.

3. Communication Is Everything

How companies have communicated with key audiences during this unusual time of quarantine have determined whether they rose to meet the challenge or crumbled. Smart organizations have been overcommunicating with customers, employees, suppliers and strategic partners.

They have kept in touch using everything from social media and traditional advertising to simple, handwritten signs on their front doors. For many businesses reliant on foot traffic and brick-and-mortar operations, it has been vital to reach stakeholders from all walks of life, not only those who live online.

4. Cash Is King

There is a reason that having at least six months of cash reserves is something that business gurus preach. Maintaining enough resources to fully fund operations during times of major disruption made the difference between companies that couldn’t survive and others that have managed to thrive.

With such a huge portion of the economy driven by small businesses making less than $1 million in revenue annually, relatively small amounts of cash have meant the difference between bankruptcy and rebounding. Companies with strong cash reserves were less stressed when lending froze and customer payments came to a standstill with legions of consumers hoarding cash. Individuals who have lost their jobs but have ample savings in the bank are finding a way to move ahead despite a pandemic that’s effects have stretched for months.

5. Innovate Or Die

Business owners and entrepreneurs who have remained viable pivoted quickly and reinvented themselves fast. It wasn’t an option for some companies — such as travel and tourism — when their entire industries crumbled or ground to a halt. The ability to quickly adapt is what has kept some small businesses afloat versus the estimated 25% or more that remain shuttered. From doctors moving to telemedicine to restaurants erecting outdoor spaces and focusing on delivery and curbside take-out, the changes have been extensive.

There is no way to know how much longer the economy will remain in such a state of flux. With Covid-19 rates continuing to climb and no vaccine available in the immediate future, the country is also grappling with national elections that will have a major impact on what comes next.

But in a time of uncertainty, applying these five lessons is sure to help organizations of every size find their way.