By Kevin Sneader and Shubham Singhal
Chicago, IL (Mar. 24, 2020) – The coronavirus is not only a health crisis of immense proportion – it’s also an imminent restructuring of the global economic order. Here’s how leaders can begin navigating to what’s next.
For some organizations, near-term survival is the only agenda item. Others are peering through the fog of uncertainty, thinking about how to position themselves once the crisis has passed and things return to normal. The question is, ‘What will normal look like?’ While no one can say how long the crisis will last, what we find on the other side will not look like the normal of recent years.
Ian Davis, McKinsey
These words were written 11 years ago, amid the last global financial crisis, by one of our former managing partners, Ian Davis. They ring true today but if anything, understate the reality the world is currently facing.
It is increasingly clear our era will be defined by a fundamental schism: the period before COVID-19 and the new normal that will emerge in the post-viral era: the “next normal.” In this unprecedented new reality, we will witness a dramatic restructuring of the economic and social order in which business and society have traditionally operated. And in the near future, we will see the beginning of discussion and debate about what the next normal could entail and how sharply its contours will diverge from those that previously shaped our lives.
Here, we attempt to answer the question being posed by leaders across the public, private, and social sectors: What will it take to navigate this crisis, now that our traditional metrics and assumptions have been rendered irrelevant? More simply put, it’s our turn to answer a question that many of us once asked of our grandparents: What did you do during the war?
Our answer is a call to act across five stages, leading from the crisis of today to the next normal that will emerge after the battle against coronavirus has been won:
- Reimagination, and
The duration of each stage will vary based on geographic and industry context, and institutions may find themselves operating in more than one stage simultaneously. Today, a group of colleagues published “Safeguarding our lives and our livelihoods: The imperative of our time,” which emphasizes the urgency of solving now for the virus and the economy, and thereby precedes our focus here on reimagining the future, post-pandemic.
Collectively, these five stages represent the imperative of our time: the battle against COVID-19 is one that leaders today must win if we are to find an economically and socially viable path to the next normal.
Read the full report on McKinsey’s website.
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SOURCE: McKinseyTags: coronavirus, McKinsey, outlook / predictions