Hey, Buddy, Can You Spare a New Paradigm?
Adversity can bring people and organizations closer — even when they have to practice social distancing. A survey released this week of more than 2,600 companies around the world found that most “felt closer” to their employees, customers and supply chain partners during “the worst global recession since the Great Depression.”
“Closer” how? In the past six months, approximately 90% of companies surveyed by HSBC said they had “extended support to other businesses” and received the same treatment in kind. About half have “shared information, premises or expertise with smaller businesses, while a third collaborated with other businesses to enable them to get their products to customers.” More than a third either relaxed payment terms for smaller partners or received better payment terms themselves.
“The global COVID-19 pandemic has driven U.S. businesses to redefine what it means to be resilient,” said Wyatt Crowell, U.S. head of commercial banking at HSBC. “Becoming closer with their employees and more collaborative across the industry with their partners will help corporate leaders prepare for the ‘next normal’ operating environment. As the world continues to grapple with the fallout from the pandemic, supporting customers, employees and their partners will become increasingly important for firms to survive.”
HSBC said its findings suggested that supply chains were being “reshaped rather than reshored” at a time when organizations seek greater resilience from their partners.
“The importance of connectivity is evident,” the report said. “Businesses feel closer to their suppliers and have taken active steps to support partners. This collaboration facilitates the control and transparency businesses are seeking to become more resilient. This appears particularly timely, given the elevated level of threat felt by components manufacturers and also service companies.”
The survey also found that companies believe:
- Investing in technology is critical to their future success.
- Employee morale is the biggest barrier to building resilience over the next six months.
- Sustainability is a high priority for them.
The complete report can be downloaded here.