The Re-Beginnan | Vol.2 | Issue 1
The pandemic is on the rise. The world has been enjoying the dividends of globalization, but now is witnessing the perils of it with the pandemic spreading across oceans, continents and time itself. Epidemics and pandemics are not new. But just as the name, this virus is novel and has much higher transmission rate and incubation period and the globalization factor has added fuel to fire. Covid-19 has already impacted more than 6.6 million people and lead to 3.9 lakh deaths (as on 4th June, 2020). With World Economic Forum already claiming that we are at least 12–18 months away from the vaccine, Covid-19 poses long lasting threat on society and general lifestyle in large.
Just like the ‘hereditary cancer syndrome’, an inherited disorder passed on by parents to children which poses higher-than-normal risk of certain types of cancer, Covid-19 showcases similar genesis and will continue to pass on from human to human across globe till transmission rate is reduced to zero or till vaccine is made available to public at large. Covid-19 will test the resilience and persistence of individuals, society and businesses alike. This in conjunction with the fact that the virus is not spreading in sync across borders will pose bigger challenge for corporates as they will have to continue to reinvent their value chain till the impact of pandemic results in ‘neo-world’.
With hands and feet in fire, our life and work are changing by the minute right in front of our eyes. From globalization to focus on localization, shut downs, social distancing and virtual offices have become the new norm. Covid-19 is not only expected to claim lives but has also led to ‘economic sudden stop’ and cliché it may sound but it’s a classic case of burning wound and salt. Covid-19 is no less than a war like situation — casualties increasing by the hour, extensive emotional and psychological stress across humankind and financial losses mounting. Covid-19 in truest sense will be historical landmark and the post covid-19 world will never be the same again.
While somatic sufferings are common phenomenon, mental sufferings have been the biggest liability of a war but was widely neglected in medical disclosures till World War I. However, the huge numbers of mentally distressed soldiers and casualties during and post-World War I elicited psychiatrists to look into it and the complex of nervous and mental disorders associated were termed as ‘war neurosis’. Post covid-19 world will be no different for corporates and will be unique in the sense they will not only have to manage shrinking profits but also manage the traumatic stress that everyone in the value chain (customers, employees, suppliers and other stakeholders) will be going through. The complex of collective neurotic disorders that corporates will experience in people across its value chain is what we call ‘NeurPorate’ (a term coined by me in my latest publication), a derivative of ‘neurosis and corporate’.
Like other mental disorders, corporates will have to put humanitarian over profits in short run to navigate through the crisis. ‘NeurPorate’, if not managed well might lead corporates into overreacting to situations at hand and will lead to overall derailment of value chain. In this article, we explore neuroscience of leadership and strategies which will help businesses navigate through the pandemic and future crisis.
Practice being ‘demotional’:
The term was coined by Bollywood star ‘Shahrukh Khan’ when asked about describing himself in one of the interviews. A term which has no existence prior to 2016, when asked to explain, he mentioned that he was deeply emotional to love people have for him but has reached a stage where he has managed to detach himself from negative reviews and harsh criticism. The state of being emotional towards something and still having the ability to detach from it, is what he calls ‘demotional’.
While it is natural for corporates to be emotionally invested in maximizing bottom lines, the situation demands them to reassess the current situation and its business post covid-19 and detach itself from the yearn of maximizing profits in short run. Businesses should focus on reassessing their targets and focus on cost avoidance rather than cost reduction strategies. Businesses will have to assess impact of covid-19 on each of the key stakeholders involved in value chain and will have to collaborate with them to navigate through the system and ensure sustainability in the long run. A concept which currently has no relevance in corporate world till now, has not only become relevant but also critical and will be a key factor in determining success of corporates in navigating through the crisis.
Apply ‘emotional intelligence’ to Corporate:
Studies have suggested high correlation between emotional intelligence (a concept commonly used for individuals) and neurotic well-being, social relationship and lower stress levels. Corporate leadership will now have to be self-aware and self-regulate their emotions in decision making and displaying social skills, empathy and motivation in managing stakeholders. If done right, leaders have the opportunity to not revive and recreate a sustainable value chain but a loyal one.
Whether a ‘scapegoat’ or a ‘black swan’, covid-19 will force corporate leaders to adopt emotional intelligence as part of culture — a solution which has been long waiting for a problem to arise. Along with operational resilience and persistence, leaders will have to focus on the people side of business to manage the situation at hand.
Developing ‘deliberate calm’:
The situation at hand is creating undercurrents and will not only be financially challenging but will also test emotional resilience of leadership which might impair objective decision-making ability. Decisions taken in state of panic might have negative long-term implications for corporates and might even jeopardize the very concept of ‘going concern’. While corporate and its leadership need to acknowledge the situation at hand but will have to practice what airline pilots call ‘deliberate calm’. ‘Deliberate calm’ is something pilots’ practice during simulations so that they are able to manage their minds failure situation and are able to decide course of action calmly and objectively. Corporate leaders will have to invest in developing and practicing ‘deliberate calm’ which will not only help them in clear decision making but will also improve confidence index of stakeholders in business.
Managing infodemic:
The world has already witnessed coronavirus as the first real example of social-media infodemic. Fake claims on root cause of virus and how certain foods can cure coronavirus has been spreading on the web and social media platforms faster than the virus itself. Managing incorrect information has been critical to business and with advent of social media, the criticality has amplified. Infodemic can hurt businesses in short run considering the current economic and psychological situation of public at large. Corporates will have to organize for task force to continuously monitor web, social media and interactive media platforms to identify information relating to stakeholders. Task force will have to assess the impact of information on the confidence index of the customers, suppliers, employees, shareholders, regulators and the general public at large and will have to prepare communication strategy to manage infodemic. Speeding up the overall process will be of key importance to curtail the impact of such information floating around. Corporates could explore leveraging on artificial intelligence and machine learning to identify and respond to such information. Corporates and their association will also have to work closely with social media giants to devise strategy on managing such information
Way forward:
The common experience that the globe is facing on account of covid-19 will help realize change in some ways for better. Difficult situations such as these will force corporate leadership to invest more in people, internal controls, focus on outside-in approach and be more inclusive in decision making. Covid-19 will force Corporates and Management Gurus alike to relook at management paradigms. Management Gurus will have to incorporate theories on NeurPoratic behavior of value chain while the Corporate leaders will have to continuously keep an eye on ‘the black sheep’ of the value chain and be responsive with action plan to avoid disruptions. Leaders will have to not only devise one-time mitigation strategy but will have to imbibe the concept of ‘NeurPoratic’ behavior in its overall governance and transition from ‘reactive to preventive’ mode.
