Learnings and takeaways from 2021

Businesses went through an unprecedented rollercoaster ride in 2021. The year had started on a rather positive note as the coronavirus infection rate in Bangladesh remarkably came down to below 5 per cent.

To the surprise of many, a nationwide Covid-19 vaccination drive was launched in January, elevating hopes that the country was going in the right direction to contain the deadly virus.

As a result, economic activities slowly started to regain momentum and the situation was promising till mid-March.

But as things were returning to normalcy, the emergence of the Delta variant of Covid-19 brought dark clouds overhead once again.

It reminded us the famous saying, "man proposes, God disposes".

In literally no time, this contagious variant spread all across the world with neighboring India being badly hit.

Delta did not take much time to cross the Indo-Bangla border either as Bangladesh was soon infected as well.

By mid-April, the infection rate went up to 22 per cent and after a slight decline for a few weeks, the infection rate started climbing again to reach around 33 per cent by first week of August.

Our medical facilities were not adequately equipped to handle such a huge number of patients as an acute shortage of ICU beds and inadequate supply of oxygen made the situation extremely inhumane.

In addition, the vaccination campaign was halted after April due to a lack of supply.

Against the backdrop of such a dire situation, the government reimposed restrictions to curb infections.

Consequently, businesses again faced huge disruptions in continuing their operations but after the infection rate rose for a few more months, it started to decline from mid-August.

As such, the situation had improved significantly since October as businesses have been slowly but surely getting back in their usual mood.

Lately there has been huge fanfare regarding Omicron, the most recent variant of Covid-19.

This variant has already been detected in 89 countries and is spreading rapidly. Many European nations are reimposing tougher measures  to stem a new wave of infections. So, we will have to be absolutely watchful how things evolve here in our country.

The business environment was extremely volatile throughout the year. Under such difficult conditions, managing a business is extremely challenging. Some of the learnings that we gained from 2021 would help us get well prepared to face any such uncertain time in the future.

Organisations need to be ready for the unforeseen, unexpected events. They must remember that there could be bolt from the blue anytime, such as fires.

There are certain measures and processes which would enable organisations to be better equipped to survive during times of crisis.

It starts with forming a team often known as an "Emergency Response Team (ERT)", whose key responsibility is to steer the organisation in times of emergency.

This team will look into all potential risks that might impact the business. Once the risks are identified, the next step would be to define the plan often called "Business Continuity Plan (BCP)" to mitigate those risks and ensure business continuity.

Organisations should also have a plan known as the "bare-bones plan" for the worst possible scenario.

Every now and then, companies must organise events like fire drills and other evacuations in case of any natural disaster or terrorist attack. Everyone has to be mobile and agile all the time to respond quickly to any crisis.  

The most valuable asset for any organisation is its employees. Businesses must remember people come first, each and every time. It is during times of challenge that employees' roles become even more critical.

Therefore, organisations have to be empathetic, more engaged with their employees, support them and keep them motivated.

Research shows, empathy contributes positively to enhance innovation, productivity, and employee retention.  

Organisations must have a safety net to manage working capital. They should have cash cushions as well as other sources of affordable financing to sustain themselves during an extended economic downturn.

In 2021, many companies had to close their doors as they struggled to ensure financing for their fixed costs for a prolonged period.

Working remotely is a reality now. During the pandemic it was substantiated that there are certain jobs which can easily be done from home.

Studies show employee productivity goes up as well as working remotely allows staff to enjoy flexibility in working hours. It also gives them a sense of security as they can be with their families in the time of crisis.

If organisations allow a certain number of employees to work from home, they need to spend less on costly office space. So, companies can save substantial rental costs and reduce administrative hassle in terms of managing office space and people.

To make "work from home" effective, all we need are clearly defined job descriptions, uninterrupted technical support, and well-defined Key Performance Indicators (KPIs).

There has to be periodic monitoring of KPIs and providing feedback to employees to manage their performances.

Another critical learning form 2021 is to embrace technology, which would ensure convenience for the consumers. E-commerce is a great example as consumers do not need to be physically present at the selling points and thus avoid many hassles.

By using technology, companies can avoid face-to-face meetings and thereby save travelling expenses.

In today's highly connected world, no business can survive and sustain in isolation. Greater cooperation and collaboration among stakeholders are unquestionably essential to manage crises as well as grow sustainably.

The government plays a pivotal role here by offering business friendly bail-out packages as necessary and more importantly, by providing pragmatic policy support.

Experts describe today's world as VUCA -- volatile, uncertain, complex, and ambiguous. According to Kevin Roberts, an advertising kingpin, this is not just a VUCA world, this is a super VUCA world.

"Businesses have to always be vigilant and dynamic to survive in this super VUCA world," he said.

The author is chairman and managing director of BASF Bangladesh Limited.