In looking back at 2020’s economic impacts and then planning forwards through 2021, the critical question becomes could this be a 12-month reverse recovery curve or a more protracted 36-month course correction? General consensus at the moment is trending toward Q4 ’21 as the key date for the return to “normalcy”. Given all the variables that continue to impact timelines of recovery, an ongoing reassessment process will likely be necessary.
Recovery Perspectives: Cautiously Planning ’21
The Zeitgeist of 2021:
New Administration, Vaccine Rollout, New Virus Variant, Continued Economic Uncertainty & Delayed Expectations of a Return to Normal.
In looking back at 2020’s economic impacts and then planning forwards through 2021, the critical question becomes could this be a 12-month reverse recovery curve or a more protracted 36-month course correction? General consensus at the moment is trending toward Q4 ’21 as the key date for the return to “normalcy”. Given all the variables that continue to impact timelines of recovery, an ongoing reassessment process will likely be necessary.
Operational Questions Persist:
- Is it the end of the work environment as we knew it?
- When will a return to some type of normalcy commence and, in turn, revenues?
- How much technology will be needed to enable the next evolution of productivity?
- Will a geographically disbursed workforce become commonplace?
- What can be done to create more agility and flexibility in every expense category?
Evolving Strategies for Recovery:
Variable Cost Reductions:
Outsourcing
Fixed Cost Reductions:
Downsizing, Terminations, and Contract Restructuring
Creating Liquidity:
Asset Monetization, Sale-Leasebacks
Budgeting:
Zero-Based, Ongoing Forecast Readjustments
Operations:
Agility, Hybridized Models, New Methods of Collaboration
Reimagine / Transformation:
Mindset Changes of Traditional Operational Methods