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Leadership During a Crisis
A Collection of Relevant Papers
WEBINAR:
LEADING THROUGH
CRISIS AND
BEYOND COVID-19
Thursday, 2 April, 2020
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WELCOME – some housekeeping before we get started
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Leadership:
Now is the time
for adaptive
leaders
Culture:
Making the case
for change
Employee
Engagement:
From emergency
response to
greater resilience
Performance
and rewards:
Re-thinking plans
through times of
crisis
© 2020 Korn Ferry. All rights reserved 3
A year of two halves
Recruitment:
Building resilience
into your talent
pipeline
Without question, 2020 will test the leadership acumen of senior management and
your organisation’s ability to operate in the face of extreme ambiguity.
Consider these five dimensions when responding to the immediate impact of the virus,
as well preparing for the inevitable recovery.
© 2020 Korn Ferry. All rights reserved 4
Tim Wiseman
Client Partner, Hong Kong
Head of APAC Leadership Practice
Leadership
Leadership in times of high uncertainty
5
1. Calm
2. Confident and positive
3. Courageous
4. Empathetic
5. Resilient
1. Express a vision
2. Communicate
constantly
3. Act!
4. Seek clarity
5. Keep it simple and
purposeful
© 2020 Korn Ferry. All rights reserved
BE DO
© 2020 Korn Ferry. All rights reserved 6
Sharad Vishvanath
Senior Client Partner, New Delhi
APAC Culture Strategist
Culture
7
Recognise your weak
points
Start by considering
your organisation's
Achilles heel. Is it agile
enough to provide
freedom within broad
guide rails? Does it
have the tenacity to get
through tough
decisions?
1 Build capabilities
quickly
Have a clear focus on
people rather than
products and tasks.
This might be a good
time to take a hard
look at talent. Work
out what people need
to adjust quickly to
the new behaviours
required.
2 Set up centres of
excellence to manage
the ‘new normal’
People need guidance,
however leadership
structures may pivot
from ‘command and
control’, to collaborative
ecosystems solving
complex problems.
3
© 2020 Korn Ferry. All rights reserved
5
Culture: making the case for change
© 2020 Korn Ferry. All rights reserved 8
Kartikey Singh
Client Partner, Singapore
APAC Rewards and Benefits expert
Performance and rewards
Performance and rewards: Re-thinking plans through
times of crisis
9
2020: a two-
cycle year
Focus on
different
objectives in
each half.
1
5
Weigh up internal
performance vs
external impact
Differentiate between
issues caused by the
virus’ impact on the
market, and long-
standing performance
concerns.
2
6
Review your
targets
What you measure
in the first six
months will
fundamentally
impact the direction
your business will
take..
3 Think holistically
about rewards
Non-monetary
recognition can
have just as much
impact.
4
© 2020 Korn Ferry. All rights reserved
4 Use time wifely
Start planning now for long-term programs
Keep your team focused on the future over the coming months
with major change projects you might not have had time for
before.
5
© 2020 Korn Ferry. All rights reserved 10
Gladdy He
Senior Client Partner, Shanghai
MD APAC Life Sciences Market
Recruitment
Recruitment: Building resilience into your talent pipeline
11
Get the basics
right
People are
looking
for employers
they can trust.
1
5
Differentiate
between short-term
setback and long-
term change
Opportunities in your
sector will shape the
talent you need now,
and in the longer
term.
2
6
Size up your people
Use data to analyse
every profile in the
organisation, identify
your high potential
talent and the new
opportunities you
could give them.
3 Consider new
alternatives
Test younger talent.
Look for those with
high learning agility
who can also adapt
easily to virtual
working styles.
4
© 2020 Korn Ferry. All rights reserved
4 Use time wifelyRecruit for resilience
The capabilities you are looking for be different to a year ago. People need to be able to
communicate effectively and authentically across digital channels, and manage their
productivity remotely.
5
© 2020 Korn Ferry. All rights reserved 12
Jingqi Li
Senior Principal, Shanghai
Employee Engagement expert
Employee Engagement
Engagement: From emergency response to greater resilience
13
Focus on the
future -
anticipate
opportunities and
re-focus
business
priorities when
time is right.
1 Act on feedback –
it’s a two-way
conversation. Make
sure employees can
voice their concerns
and questions in a
way that suits them –
from pulse surveys to
town halls.
2
6
Embrace new
way of working
– equip people
with the right
tools to stay
engaged and
share ideas and
knowledge.
3 Use time wisely
If operational needs
have slowed down
productivity, this could
be the ideal
opportunity to
strengthen capabilities
through training.
4
© 2020 Korn Ferry. All rights reserved
4 5 Use time wifely
Reflect on engagement during recovery
Engagement surveys pre- and post-crisis can
give you a valuable benchmark and help you
prepare for the next crisis.
5
Join our upcoming webinars
© 2020 Korn Ferry. All rights reserved 14
Employingagile reward strategies for a volatile world – 7 April1
Keeping yourpeople engaged and productivethrough the crisis – 8 April2
Leading in timesof crisis – 15 April3
Protectingyour company’s economichealth – 16 April4
Social distancing without revenue disruption – 21 April5
Thanks for joining
JOIN THE
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WEBINAR OF
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LEADING THROUGH CRISIS AND
BEYOND COVID19 WEBINAR SERIES
EMPLOYING AGILE
REWARD STRATEGIES
FOR A VOLATILE WORLD
7 April 2020
SPEAKERS
JAMIE PRIDE
Client Partner,
Korn Ferry Australia
MARY CHUA
APAC Rewards &
Benefits Leader,
Senior Client Partner,
Korn Ferry Malaysia
KARTIKEY SINGH
Singapore Rewards &
Benefits Leader,
Associate Client Partner,
Korn Ferry Singapore
© 2020 Korn Ferry. All rights reserved 3
Housekeeping
© 2020 Korn Ferry. All rights reserved
ALL LINES ARE MUTED1
SUBMIT YOUR QUESTIONS THROUGH THEQ&ABOX2
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Korn Ferry’s Global Rewards Pulse Survey – Key Highlights
© 2020 Korn Ferry. All rights reserved 4
64%are prioritizing reducing non-
people operational costs.
Only 4% have laid off
permanent staff
20%have or plan to cut salaries,
while 34% have or plan to
freeze salaries
60%think the pandemic will have
a negative impact, while 33%
are not certain
36%have or plan to reduce,
defer or delay short-term
incentives, while 21% plan to
do so for long-term incentives
34%have or plan to adjust targets
for sales incentives
01
Make needed changes to
support labor continuity
and business realities.
02
Develop multi-pronged
approach.
03
Assess impact of cost
management opportunity
with employee relations
risk.
04
Implement and
communicate with care
and empathy.
A framework to manage employment costs during uncertainty
© 2020 Korn Ferry. All rights reserved 5
The early impact on Executive Compensation
© 2020 Korn Ferry. All rights reserved 6
Company/industryeconomic impact
Low High
Employee
impact
Low
Monitor
(tech, professional services)
Long-term actions
(oil & gas)
High
Temporary action
(financial services, retail)
Immediate course-correct
(airlines, hospitals)
Sales compensation - actions in times of crisis
© 2020 Korn Ferry. All rights reserved 7
Increase ramp periods for new sales
reps.
Redefine acceptable performance
levels.
Provide non-recoverable draws
(guaranteed earnings) for
a predetermined time.
Lower threshold performance levels
on primary sales compensation
measures.
Provide special incentives and spot
awards for continued business
development efforts.
Shift sales rep focus to retention,
usage and consumption on sold
products and services.
Increase accelerated payment
levels.
Move from billed/collected revenue
to new contract/new logo.
Shift incentive measures to
customer / activity-based measures.
Lower target excellence levels for
top performers.
Remove performance linkages on
multiple measures.
Review measurement and payout
periods to align with current
environment.
Provide ‘stay bonus’ if creditable
threat of performers leaving.
Lower threshold performance levels
on primary measures.
Increase accelerated payment
levels.
Introduce special incentives and
spot awards for continued business
development efforts.
Lower target excellence levels for
top performers.
© 2020 Korn Ferry. All rights reserved 8
Be balanced
when assessing
labor cost
reduction
alternatives.
Ensure your
immediate
priority is
employee well-
being.
1
4
Leaders lead
by example.
Remember
this is
temporary and
prepare for a
rebound.
2
5
Tailor actions to fit
your organization;
learn from others,
but “best practice”
is what is best for
you.
Be direct with
employees
and treat them
like adults.
3
6
Principles
© 2020 Korn Ferry. All rights reserved
More webinars
in the series
© 2020 Korn Ferry. All rights reserved 9
On-demand Leadingthrough crisis and beyond COVID19
Upcoming:
Tomorrow,8 April Keepingyour people engagedand productive through crisis
Wednesday, 15 April Leading in timesof crisis
Thursday, 16 April Protectingyour company’seconomic health
Tuesday, 21 April Social distancing withoutrevenue disruption
Thank you for joining
LEADING THROUGH CRISIS AND
BEYOND COVID19 WEBINAR SERIES
KEEPING YOUR PEOPLE
ENGAGED AND
PRODUCTIVE THROUGH
THE CRISIS
8 April 2020
SPEAKERS
JAMIE PRIDE
Client Partner,
Korn Ferry Australia
JINGQI LI
Senior Principal
Korn Ferry, China
CHRIS MAYLER
Senior Client Director
Korn Ferry, Australia
© 2020 Korn Ferry. All rights reserved 3
Housekeeping
© 2020 Korn Ferry. All rights reserved
ALL LINES ARE MUTED1
SUBMIT YOUR QUESTIONS THROUGH THEQ&ABOX2
GIVE US FEEDBACK3
WE WILL SHARE THE SLIDES AND RECORDING WITH YOU AFTER THE SESSION4
JOIN OUR UPCOMING WEBINARS5
Motivation is critical right now – and can erode fast
4
WHAT MAKES WORK WORK?
WHAT’S CHALLENGING RIGHT
NOW?
WHAT CAN WE LEARN FROM
PAST CRISES?
Engagement and enablement
Engagement = committed people
willing to go the extra mile.
Enablement = the right people in the
right roles with the right tools in the right
work environment.
Distraction and frustration
Distraction – often due to worry at a
personal level – erodes engagement.
Frustration – often due to difficulty in
meeting work goals in a disrupted
environment – compromises
enablement.
Motivation can erode quickly –
but is key to recovering at pace.
In the 2008 financial crisis, we saw that:
 Existing motivation gaps were
exposed quickly – and companies
that captured/acted on that learning
quickly reaped rewards.
 Companies that emphasized
engagement and enablement during
the crisis recovered more quickly.
© 2020 Korn Ferry. All rights reserved
© 2020 Korn Ferry. All rights reserved 5
Doing more;
doing less
© 2020 Korn Ferry. All rights reserved
LEADERS SHOULD NOT:
 Assume everyone has
more free time.
 Instinctively clamp down
on metrics and rules.
 Think of employees as one
homogeneous group.
EMPLOYEES NEED MORE
• Prioritization and focus.
• Informal connection and
mentoring.
• Medium-term planning and
mobilization.
EMPLOYEES NEED LESS
• Meeting overload.
• Scattered scheduling.
• Reporting on “the noise” at
the expense of what’s critical.
HOW CAN LEADERS BEST ENABLE THE ‘MORE’ AND THE ‘LESS’?
Focus on facilitating sharing, generating peer examples, and “group-sourcing”
Forging a path forward: looking beyond the crisis
6
Make sure health and
safety are top of the
agenda.
“The leader’s role is
to define reality, then
give hope.”1
5
Frequent, candid,
consistent, and
personal
communications.
Address rew ards and
performance metrics.
2
6
Acknow ledge and
tackle “the
w atercooler gap.”
Be realistic about
the promise – and
the reality – of
technology.
3
7
Take employees’
personal challenges
seriously – and provide
true resources.
Give people a voice.
4
8
© 2020 Korn Ferry. All rights reserved
*The w ater cooler gap refers to the lack of opportunities employees have to socialise, catch up for a chat and
interact in an informal manner, because of the w orking from home restrictions.
More webinars
in the series
© 2020 Korn Ferry. All rights reserved 7
On-demand Leading through crisis and beyond COVID19
Employing agile reward strategies in a volatile world
Upcoming:
Wednesday, 15 April Leading in timesof crisis
Thursday, 16 April Protectingyour company’seconomic health
Tuesday, 21 April Social distancing withoutrevenue disruption
Thank you for joining
Marketing & Sales Practice
Adapting customer
experience in the time
of coronavirus
Care, creative thinking, and new tools can address customers’ acute
needs today and forge stronger ties in the post-COVID-19 era.
April 2020
© South_agency/Getty Images
by Rachel Diebner, Elizabeth Silliman, Kelly Ungerman, and Maxence Vancauwenberghe
Exhibit 1
GES 2020
Adapting customer experience to the time of the coronavirus
Exhibit 1 of 2
Four actions can address immediate customer needs and prepare for the future.
Focus on care
and concern
l Reach out, but
with support, not
marketing
l Make a priority of
employees and
community
l Stay true to
company purpose
and values
Meet your customers
where they are
l Innovate digital
models to help
customers weather
the crisis safely from
home
l Expand home
delivery options
l Consider contactless
operations
Reimagine the
post-COVID-19 world
l Economic hard times
will force cost cuts
l Migrate customers
to digital channels
to save money and
boost satisfaction
l Brick and mortar stores
may look very different
post-crisis
Build agile capabilities
for fluid times
l Tap social media, not surveys,
for quick customer readings
l Solicit employees for
ear-to-the-ground insights
l Save time with “test and scale” labs
l Pay attention to “failure modes”
indicating that you’ve missed
customer signals
In a short period of time, COVID-19 has over-
whelmed lives and livelihoods around the globe.
For vulnerable individuals and the customer teams
that serve them, it has also forced a rethinking of
what customer care means. Suddenly, examinations
of customer journeys and satisfaction metrics to
inform what customers want have given way to an
acute urgency to address what they need.
Particularly in times of crisis, a customer’s
interaction with a company can trigger an immediate
and lingering effect on his or her sense of trust and
loyalty. As millions are furloughed and retreat into
isolation, a primary barometer of their customer
experience will be how the businesses they frequent
and depend upon deliver experiences and service
that meets their new needs with empathy, care
and concern. Now is also the time for customer
experience (CX) leaders to position themselves at
the forefront of the longer-term shifts in consumer
behavior that result from this crisis. Keeping a real-
time pulse on changing customer preferences and
rapidly innovating to redesign journeys that matter
to a very different context will be key.
Hand in hand with this perspective, four CX
practices can frame short-term responses,
build resilience, and prepare customer-forward
companies for success in the days after coronavirus.
They are: focusing on care and connection; meeting
customers where they are today; reimagining CX for
a post-COVID-19 world; and building capabilities for
a fast-changing environment (Exhibit 1).
1. Focus on fundamentals: Care
and connection
Now more than ever, people need extra information,
guidance, and support to navigate a novel set of
challenges, from keeping their families safe to
helping their kids learn when schools are shut down.
They want a resource they can trust, that can make
them feel safe when everything seems uncertain,
and that offers support when so much seems to be
overwhelming. A baseline starting point: staying
true to company values and purpose. Our research
shows that 64 percent of customers choose to
buy from socially responsible brands, a figure
that has grown significantly in the past two years.1
1
	Earned brand 2019, Edelman, edelman.com.
2 Adapting customer experience in the time of coronavirus
2
	McKinsey US Consumer Pulse survey of 1,073 US participants, 18 years old and above, between March 20 and 22, 2020.
3
	McKinsey survey of 1,249 participants across 46 cities in China, February 2020.
4
	Chiara Bertoletti, “Coronavirus Nuovi dati sulle vendite della gdo in store e online,” GDOWeek, March 6, 2020, gdoweek.it.
The way organizations step up to play this role for
their customers, their employees, and the broader
community is likely to leave lasting memories in
customers’ minds.
Care for your customers
The first step in caring is to reach out—not in
marketing or overt attempts to gain a competitive
edge, but to offer genuine support. Many
organizations have already stepped up to care for
their customers. For instance, Ford’s “Built to Lend
a Hand” campaign outlines initiatives including
payment relief and credit support. Budweiser
redeployed $5 million usually spent on sports and
entertainment marketing to the American Red
Cross. When tens of thousands of college students
needed to vacate their dormitories unexpectedly, a
storage rental company offered 30 days of free self-
storage. A credit-card company quickly recognized
the pandemic’s financial burden and waived one
month of interest on credit cards. Government
officials have encouraged others to do the same.
These experiences are critical for customers in
the short term, and the impact will build positive
relationships that are bound to last long after the
crisis has ended.
Care for employees
In times of crisis, caring for customers starts
with thinking first about employees. As any flight
attendant would advise during the preflight safety
briefing, it’s important to put on your own oxygen
mask before helping others. Our research shows
that 60 percent of Americans are very or extremely
concerned about their safety and the safety of their
families, while 43 percent are very or extremely
concerned about their job or income—and not being
able to make ends meet.2
Some companies have led with employees in mind
during an unsettling period of uncertainty. In a
video prepared for employees, Marriott CEO Arne
Sorenson transparently shared statistics on the
company’s performance and outlook, announced pay
cuts for himself and his executive team, and focused
on a sense of hope in the future. Many companies
have pledged to continue paying hourly workers at
their regular rate, even if they need to remain at home
due to illness, while others are still paying hourly
workers despite store closures. For those still on
the job, employers can provide new tools, training
and support to enable employees to deliver superior
customer experience in a new environment.
Care for the community
Today’s industry leaders have demonstrated that
genuine care should extend beyond the immediate
customer base. Italian companies have donated
hundreds of millions of dollars to local hospitals
and the Civil Protection Agency to combat the
virus spread. Many are stepping up to the plate to
manufacture important supplies. Luxury-goods
companies have refitted cosmetics and perfume
production to help produce hand sanitizer. Remote
conferencing services companies, who are
benefiting from the shift to virtual meetings, have
provided free videoconferencing for K–12 schools.
2. Meet your customers where
they are today
Customers’ normal patterns of life have come to a
halt. Simple activities like a trip to the grocery store
or dining out with friends are now difficult, risky,
or even prohibited. Overnight, demand patterns
have shifted. Overall online penetration in China
increased by 15–20 percent.3
In Italy, e-commerce
sales for consumer products rose by 81 percent in
a single week, creating significant supply-chain
bottlenecks.4
Customers need digital, at-home,
and low-touch options. Digital-led experiences will
continue to grow in popularity once the coronavirus
is quelled, and companies that act quickly and
innovate in their delivery model to help consumers
navigate the pandemic safely and effectively will
establish a strong advantage.
Accelerate digital options
Digital delivery has become a necessity for most
customers who are confined at home. Adoption
3Adapting customer experience in the time of coronavirus
has grown strongly, even among the most “digitally
resistant” customers. For some companies, the
rapid development of digital functionalities is key to
ensuring continuity of services. China-based Ping
An Bank rolled out new “Do It At Home” functionality
and received more than eight million page views and
nearly 12 million transactions within half a month.
Players in service industries have also accelerated
digital value-added services like advice and
education. Over 44,000 viewers tuned in to Bank
of China’s first three online shows, where leading
investment managers shared market insights,
discussed the impact of the virus, and gave advice.
Other companies are making select digital services
free to help existing customers and broaden their
reach to new audiences. Fitness companies are
deploying this strategy through extended free trials
for their online and app-based classes, where app
downloads and new sign ups have grown between
80 percent and more than 250 percent in recent
months. It’s likely that many customers who have
converted to digital services will stick to them after
the immediate health crisis is over: Companies
who make this shift to digital and deliver superior
experiences have an opportunity to increase
adoption and maintain these customer relationships
after the crisis.
Bring your business to customers’ homes
Similarly, home delivery has gone from a
convenience to a necessity: during this crisis, Italy
has seen online grocery home-delivery users
double between February and March.5
In China,
Meituan, China’s premier food delivery service,
reported quadrupled delivery orders in early 2020.
Quick-service restaurants and aggregator apps are
offering free delivery to capture share in this demand
shift. Some fresh meal delivery start-ups have
experienced a month-on-month demand boost of
25 percent and are experimenting with bulk versions
of their offering. In the United States, home delivery
options have expanded beyond food, as pharmacies
offer extended free trials on their prescription
delivery service, and car dealerships offer to pick up
and drop off vehicles repair and maintenance.
Make physical operations touch-free
If part of the customer journey must exist in a
physical channel, consider converting to contactless
operations. The United States has seen a 20 percent
increase in preference for contactless operations,
with numerous industries adapting to this change.
Meituan, which started as a food- and product-
delivery service but evolved into a digital ecosystem
player, was the first Chinese company to introduce
contactless delivery in Wuhan.6
The service quickly
became popular among all audiences, enabling
Meituan to reach beyond its core millennial customer
base—more than two thirds of new users are in
their 40s and 50s. In the United States, Walgreens
has rolled out a drive-through shopping experience.
Customers order from a menu of available items such
as household goods, medical supplies, and groceries.
Store associates assemble and check out the
order—all from the convenience of the drive-through
The way organizations deal with
their customers, their employees, and
the broader community in a crisis is
likely to leave lasting memories in
customers’ minds.
5
	Madeline Lenahan, “COVID-19: Impact on food and drink,” Apptopia, March 12, 2020, appotopia.
6
	In contactless delivery, customers order online or via phone, and the delivery is dropped off at a pre-specified location to minimize 		
	 interpersonal interaction.
4 Adapting customer experience in the time of coronavirus
window. Grocery chains have kept their physical
stores open to shoppers but are adding touchless
measures, including new installations of plexiglass
“sneeze guards” at every cash register to protect
customers and employees.
3. Reimagine customer experience
for a post-COVID-19 world
The COVID-19 crisis will end at some point. We
expect changes in consumer preferences and
business models to outlast the immediate crisis.
This has begun to play out in China, where there has
been a 55 percent increase in consumers intending
to permanently shift to online grocery shopping,
and an increase of three to six percentage points in
overall e-commerce penetration in the aftermath
of COVID-19.7
Some consumers will be trying
digital and remote experiences for the first time. In
China, the share of consumers over the age of 45
using e-commerce increased by 27 percent from
January to February 2020, according to Chinese
market-research firm QuestMobile. Once they are
acclimated to new digital or remote models, we
expect some consumers to switch permanently or
increase their usage, accelerating behavior shifts
that were already underway before the crisis.
Further, once the public-health crisis has subsided,
economic impacts will persist. Leading companies
will deliver on the customer experiences that are
emerging as most important in the “next normal,”
while finding ways to save and self-fund.
Find savings without sacrificing experience
In a downturn, cutting costs is inevitable. But that
does not have to come at the expense of a good
customer experience, which can create substantial
value (Exhibit 2). Often, the best ways to improve
experience and efficiency at the same time are to
increase digital self-service and to make smarter
operational trade-offs, grounded in what matters
most to customers. In industries like banking, digital
servicing and sales are less expensive than branch-
and phone-based approaches. The problem for
many banks is that too few customers reach that
point because they find digital channels unfamiliar
and intimidating. Migrating customers to digital
channels is often a successful way to boost savings
and satisfaction. Teams can adopt this customer-
centric mindset in any cost-cutting exercise,
including migrating customers to self-serve
channels, radically simplifying a product portfolio, or
optimizing service level agreements.
Reimagine your brick-and-mortar strategy
So far, 60 US retailers—representing $370 billion
in annual sales and over 50,000 physical retail
locations—have closed temporarily.8
The market
capitalization of physical retail space has fallen by
more than 35 percent.9
When stores reopen, the
world of brick and mortar may be fundamentally
different. More and more customers will have grown
comfortable with digital, remote, and low-touch
options, even in rural and older populations.
We expect to see the shuttering of underperforming
stores. Retailers and consumer goods companies
should plan now to capture this lost volume. Use
mobile, online and geospatial data to optimize
networks and omnichannel sales. Examine
dynamics across digital channels, owned outlet
stores, and wholesale partners. Companies should
also re-examine the role that physical locations will
play. Omnichannel fulfillment options such as buy
online, pickup in store will increase. Some locations
may be converted to “dark stores” for fulfillment only.
Finally, some existing stores may shift toward
experience hubs that offer services and encourage
purchase across all channels. Consider Nike’s
store in New York’s SoHo neighborhood. There
customers, assisted by a personal coach, can try on
shoes in various simulated sporting environments—
including a basketball half-court, soccer trial field,
and outdoor track—to determine their preferred
7
	McKinsey survey of 1,249 participants across 46 cities in China, February 2020.
8
	“Coronavirus and store closures: Tracking America’s retailers and restaurants,” Wall Street Journal, March 26, 2020, wsj.com.
9
	Google Finance, March 6, 2020, finance.google.com.
5Adapting customer experience in the time of coronavirus
product. As the forced isolation of coronavirus fades
from view, this type of outlet may be a template that
additional retailers will adopt.
4. Build capabilities for a
fast-changing environment
Maintaining a strong customer experience in
crisis requires rapid research to understand
changing dynamics and new pain points as well
as agile innovation to address them. Customer
leaders who master that approach will create
value for consumers in high priority areas and in an
environment of increased competition.
Keep a real-time pulse on changing
customer preferences
Traditional customer insights techniques, such as
surveys, often have an 18- to 24-day lag between
launch and results readout. At a time when
conditions can change from hour to hour, that
can be far too long to deliver useful perspective.
Companies should look to quick and novel ways to
keep a pulse on consumer sentiment. In Italy alone,
Facebook has seen a 40 to 50 percent increase in
usage since the crisis began. A surge in online usage
now underway offers opportunity to tap into insights
from social media to rapidly understand consumer
sentiment and develop new ideas. One Chinese
rental car company established a team focused on
monitoring social media to identify real-time trends.
Exhibit 2
Adapting customer experience to the time of the coronavirus
Exhibit 2 of 2
Focusing on customer experience is a winning strategy in recession.
Total returns to shareholders of customer experience leaders and laggards,1
% by quarter
1
Comparison of total returns to shareholders for publicly traded companies ranking in the top 10 or bottom 10 of Forrester’s Customer
Experience Performance Index in 2007–09.
Source: Forrester Customer Experience Performance Index (2007–09); press search
–800
–700
–600
–500
–400
–300
–200
–100
0
100
200
300
Leaders
Laggards
higher returns for shareholders over 2007-09
recession from customer experience leaders
3×
2007 2008 2009 2010
6 Adapting customer experience in the time of coronavirus
In Shenzhen, where employees were asked to avoid
using public transit, it rolled out a “rent five days,
get one free” offer that allowed people to expense
a weekday carpool for work and keep the car on
Saturdays to run personal errands safely.
Listen to employees
Frontline employees are a company’s eyes and
ears on the ground. Solicit and collect employee
feedback: it will prove useful in gauging how
customers are feeling and how daily interactions are
changing. Sadly, this source of insights often goes
largely overlooked—while 78 percent of frontline
employees report that their leaders have made
customer experience a top priority, nearly 60 percent
say they believe that their ideas for improving that
experience often go unheard.10
Tools and technology
now exist to rapidly collect and aggregate real-
time ideas and feedback from frontline employees.
Investing in these can make a critical difference in
the rapidly changing current environment.
Adopt agile innovation
The sooner that companies can fulfill new consumer
needs during this time, the better off both will be.
This often means accelerating time to market for
new customer experiences, rapidly prototyping
and iterating, and releasing innovations in their
“minimum viable” state, rather than waiting to perfect
them. Building agility across functions to handle
changing customer circumstances is necessary and
will have long-lasting benefits. Typically, test-and-
scale labs allow companies to build new experiences
with 50 percent reduction in speed to market. In
addition to agile approaches, companies should
rapidly examine their innovation pipeline to set
priorities for new customer experiences that line up
with remote, digital, or home delivery trends; these
will likely continue to accelerate and differentiate CX
providers in the post-COVID-19 world.
Finally, customer leaders shouldn’t take their eyes
off of “failure modes” that can hurt if overlooked.
When it comes to demonstrating care toward
employees, make sure to double down on supporting
employees—customers will notice and appreciate
this as well. Don’t assume that customers will
automatically migrate to existing digital and remote
platforms. Rather, actively raise awareness and the
internal capabilities needed to support adoption of
these experiences. As for securing useful feedback,
if the volume of customer insights and feedback
from sources like social media and employees
has not increased severalfold in an intense crisis
environment, take it as a sign that you are missing
critical insight needed to adapt experience.
Customer experience has taken on a new definition
and dimension in the overwhelming challenge of
COVID-19. Customer leaders who care and innovate
during this crisis and anticipate how customers will
change their habits will build stronger relationships
that will endure well beyond the crisis’s passing.
10
	“Finding the way to happy customers through the voice of your employees,” Medallia, medallia.com. Note: McKinsey & Company is a partner 	
	 with Medallia in conducting research, compiling data, and developing customer analytics.
Designed by Global Editorial Services
Copyright © 2020 McKinsey & Company. All rights reserved.
Rachel Diebner is a consultant in McKinsey’s Dallas office, where Kelly Ungerman is a senior partner; Elizabeth Silliman is an
associate partner in the Boston office; and Maxence Vancauwenberghe is a partner in the New York office.
The authors wish to thank Rebecca Messina, Robert Schiff, and Will Enger for their contributions to this article.
7Adapting customer experience in the time of coronavirus
Managing through crisis and
preparing for the post-outbreak era
A CHEAT SHEET FOR LEADERS
Without question, 2020 will test your leadership and the ability of
your organisation to operate in the face of ambiguity. This cheat
sheet is a practical guide to help you work through what that means
for you and your people.
2020: a year of two halves
It is impossible to do well in any cycle without
thinking about and planning for the next one.
You are most likely grappling with two equally
important factors – keeping employees and
their families safe, and ensuring business
continuity and survival.
Eventually, the pandemic will end. And when it
does, you need to be ready – for a resurgence
in customer demand, and very different ways
of working.
.
Leadership: now is the time for
adaptive leaders
Right now, it’s time for calm, inclusive
leadership. In times of crisis, people depend on
leaders to provide clarity and hope.
Over-communicate – Drive a sense of
collective purpose and optimism. Stay
connected via video updates and social
channels. And be honest and genuine: it’s OK
to admit you don’t know all the answers.
Be prepared to make hard decisions –
Sometimes there are no easy solutions. Be
clear, compassionate and upfront – now is not
the time for mixed messages.
Re-frame this challenge – Can you use a down
cycle as an opportunity to grow? You may now
have time to implement major initiatives, or
pivot to meet shifts in customer demand.
“Don’t retract. Many healthy organisations are
taking this time to set themselves up for a big
move.” Tim Wiseman, Korn Ferry Client Partner
Once you start to see signs of recovery, make
up for lost time and take advantage of the
pent-up demand in the global economy. Get
ready to set the pace, and build a sense of
positive momentum.
What leaders need to consider now:
Leadership:
Now is the time for adaptive leaders
Corporate Culture:
Making the case for change
Employee Engagement:
From emergency response to greater
resilience
Performance and rewards:
Re-thinking plans through times of crisis
Culture: making the case for change
How well can your people and systems operate
under unanticipated pressure? Disruptive
change can be a catalyst for a shift in culture
– so if that is a leadership priority, now is your
moment.
“A left field event like this will result in people
asking ‘what can we do better?’ Solving
major supply chain, customer demand or
employee safety challenges starts with your
organisation’s DNA.”
Sharad Vishvanath, Korn Ferry Client Partner
Culture change needs to begin at the top:
when you change your behaviours, teams will
follow.
Address any weak points – Prioritise the
dimensions of culture for your industry. It
might be agility in collaboration, or a long-term
horizon to manage risk.
Build capabilities quickly – How can you help
your team adjust to these new behaviours?
Do you need to bring in people with different
values or mindsets?
Create centres of excellence – Remote and
dispersed teams still need guiderails. Make
sure your organisation’s processes and systems
support your culture shift.
Engagement: from emergency
response to greater resilience
Organisations that get employee engagement
right today will have a better chance of
ensuring business continuity in the short-
term – and retaining talent once the crisis has
passed.
“People want clear guidelines – they need to
know the organisation is taking precautions to
safeguard their wellbeing.”
Jingqi Li, Korn Ferry Senior Principal
Prioritise duty of care – Set up an emergency
response team to co-ordinate external
information to provide clear guidelines.
Internally monitor and record every case of
the illness.
Be a visible, inclusive leader – Convey
confidence and reassurance. Act quickly on
employee feedback, and have many lines of
communication open – from pulse surveys to
virtual town halls.
Equip people to work remotely – Give
them the right tools to share ideas and stay
connected, and lead through example. Use any
downtime wisely by providing remote learning
and development opportunities.
Performance and rewards: re-thinking
plans through times of crisis
In uncertain times, transparent and consistent
performance management plans and rewards
are more important than ever. Avoid making
rash, short-term decisions that could lead to
future retention challenges.
“As much as economically possible, I would
suggest riding out the storm. Supporting staff
now will win hearts and minds for a long time.”
Trevor Warden, Korm Ferry Client Partner
Split the year in two – Set collective
performance targets to see the organisation
through this first half, and avoid irrational
goals. Return to an individual scorecard
approach once the crisis has passed.
Differentiate performance – Recognise those
who were doing a great job before the crisis,
and manage their rewards and performance
differently – or you’ll risk losing them later.
Look for alternatives to lay-offs – Ask for
volunteers for reduced hours, reduced pay
for those above a certain salary bracket, or
taking paid or unpaid leave. You could cover a
percentage of a high-performer’s salary while
freezing their role.
Visit our website for more practical
advise on managing through crisis:
kornferry.com/challenges/coronavirus

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Leadership During a Crisis

  • 1. Leadership During a Crisis A Collection of Relevant Papers
  • 2. WEBINAR: LEADING THROUGH CRISIS AND BEYOND COVID-19 Thursday, 2 April, 2020 JOIN THE OTHER WEBINAR OF THIS SERIES. Click here.
  • 3. WELCOME – some housekeeping before we get started © 2020 Korn Ferry. All rights reserved 2 ALL LINES ARE MUTED1 SUBMIT YOUR QUESTIONS THROUGH THEQ&ABOX2 GIVE US FEEDBACK3 WE WILL SHARE THE SLIDES AND RECORDING WITH YOU AFTER THE SESSION4 JOIN OUR UPCOMING WEBINARS5
  • 4. Leadership: Now is the time for adaptive leaders Culture: Making the case for change Employee Engagement: From emergency response to greater resilience Performance and rewards: Re-thinking plans through times of crisis © 2020 Korn Ferry. All rights reserved 3 A year of two halves Recruitment: Building resilience into your talent pipeline Without question, 2020 will test the leadership acumen of senior management and your organisation’s ability to operate in the face of extreme ambiguity. Consider these five dimensions when responding to the immediate impact of the virus, as well preparing for the inevitable recovery.
  • 5. © 2020 Korn Ferry. All rights reserved 4 Tim Wiseman Client Partner, Hong Kong Head of APAC Leadership Practice Leadership
  • 6. Leadership in times of high uncertainty 5 1. Calm 2. Confident and positive 3. Courageous 4. Empathetic 5. Resilient 1. Express a vision 2. Communicate constantly 3. Act! 4. Seek clarity 5. Keep it simple and purposeful © 2020 Korn Ferry. All rights reserved BE DO
  • 7. © 2020 Korn Ferry. All rights reserved 6 Sharad Vishvanath Senior Client Partner, New Delhi APAC Culture Strategist Culture
  • 8. 7 Recognise your weak points Start by considering your organisation's Achilles heel. Is it agile enough to provide freedom within broad guide rails? Does it have the tenacity to get through tough decisions? 1 Build capabilities quickly Have a clear focus on people rather than products and tasks. This might be a good time to take a hard look at talent. Work out what people need to adjust quickly to the new behaviours required. 2 Set up centres of excellence to manage the ‘new normal’ People need guidance, however leadership structures may pivot from ‘command and control’, to collaborative ecosystems solving complex problems. 3 © 2020 Korn Ferry. All rights reserved 5 Culture: making the case for change
  • 9. © 2020 Korn Ferry. All rights reserved 8 Kartikey Singh Client Partner, Singapore APAC Rewards and Benefits expert Performance and rewards
  • 10. Performance and rewards: Re-thinking plans through times of crisis 9 2020: a two- cycle year Focus on different objectives in each half. 1 5 Weigh up internal performance vs external impact Differentiate between issues caused by the virus’ impact on the market, and long- standing performance concerns. 2 6 Review your targets What you measure in the first six months will fundamentally impact the direction your business will take.. 3 Think holistically about rewards Non-monetary recognition can have just as much impact. 4 © 2020 Korn Ferry. All rights reserved 4 Use time wifely Start planning now for long-term programs Keep your team focused on the future over the coming months with major change projects you might not have had time for before. 5
  • 11. © 2020 Korn Ferry. All rights reserved 10 Gladdy He Senior Client Partner, Shanghai MD APAC Life Sciences Market Recruitment
  • 12. Recruitment: Building resilience into your talent pipeline 11 Get the basics right People are looking for employers they can trust. 1 5 Differentiate between short-term setback and long- term change Opportunities in your sector will shape the talent you need now, and in the longer term. 2 6 Size up your people Use data to analyse every profile in the organisation, identify your high potential talent and the new opportunities you could give them. 3 Consider new alternatives Test younger talent. Look for those with high learning agility who can also adapt easily to virtual working styles. 4 © 2020 Korn Ferry. All rights reserved 4 Use time wifelyRecruit for resilience The capabilities you are looking for be different to a year ago. People need to be able to communicate effectively and authentically across digital channels, and manage their productivity remotely. 5
  • 13. © 2020 Korn Ferry. All rights reserved 12 Jingqi Li Senior Principal, Shanghai Employee Engagement expert Employee Engagement
  • 14. Engagement: From emergency response to greater resilience 13 Focus on the future - anticipate opportunities and re-focus business priorities when time is right. 1 Act on feedback – it’s a two-way conversation. Make sure employees can voice their concerns and questions in a way that suits them – from pulse surveys to town halls. 2 6 Embrace new way of working – equip people with the right tools to stay engaged and share ideas and knowledge. 3 Use time wisely If operational needs have slowed down productivity, this could be the ideal opportunity to strengthen capabilities through training. 4 © 2020 Korn Ferry. All rights reserved 4 5 Use time wifely Reflect on engagement during recovery Engagement surveys pre- and post-crisis can give you a valuable benchmark and help you prepare for the next crisis. 5
  • 15. Join our upcoming webinars © 2020 Korn Ferry. All rights reserved 14 Employingagile reward strategies for a volatile world – 7 April1 Keeping yourpeople engaged and productivethrough the crisis – 8 April2 Leading in timesof crisis – 15 April3 Protectingyour company’s economichealth – 16 April4 Social distancing without revenue disruption – 21 April5
  • 16. Thanks for joining JOIN THE OTHER WEBINAR OF THIS SERIES. Click here.
  • 17. LEADING THROUGH CRISIS AND BEYOND COVID19 WEBINAR SERIES EMPLOYING AGILE REWARD STRATEGIES FOR A VOLATILE WORLD 7 April 2020
  • 18. SPEAKERS JAMIE PRIDE Client Partner, Korn Ferry Australia MARY CHUA APAC Rewards & Benefits Leader, Senior Client Partner, Korn Ferry Malaysia KARTIKEY SINGH Singapore Rewards & Benefits Leader, Associate Client Partner, Korn Ferry Singapore
  • 19. © 2020 Korn Ferry. All rights reserved 3 Housekeeping © 2020 Korn Ferry. All rights reserved ALL LINES ARE MUTED1 SUBMIT YOUR QUESTIONS THROUGH THEQ&ABOX2 GIVE US FEEDBACK3 WE WILL SHARE THE SLIDES AND RECORDING WITH YOU AFTER THE SESSION4 JOIN OUR UPCOMING WEBINARS5
  • 20. Korn Ferry’s Global Rewards Pulse Survey – Key Highlights © 2020 Korn Ferry. All rights reserved 4 64%are prioritizing reducing non- people operational costs. Only 4% have laid off permanent staff 20%have or plan to cut salaries, while 34% have or plan to freeze salaries 60%think the pandemic will have a negative impact, while 33% are not certain 36%have or plan to reduce, defer or delay short-term incentives, while 21% plan to do so for long-term incentives 34%have or plan to adjust targets for sales incentives
  • 21. 01 Make needed changes to support labor continuity and business realities. 02 Develop multi-pronged approach. 03 Assess impact of cost management opportunity with employee relations risk. 04 Implement and communicate with care and empathy. A framework to manage employment costs during uncertainty © 2020 Korn Ferry. All rights reserved 5
  • 22. The early impact on Executive Compensation © 2020 Korn Ferry. All rights reserved 6 Company/industryeconomic impact Low High Employee impact Low Monitor (tech, professional services) Long-term actions (oil & gas) High Temporary action (financial services, retail) Immediate course-correct (airlines, hospitals)
  • 23. Sales compensation - actions in times of crisis © 2020 Korn Ferry. All rights reserved 7 Increase ramp periods for new sales reps. Redefine acceptable performance levels. Provide non-recoverable draws (guaranteed earnings) for a predetermined time. Lower threshold performance levels on primary sales compensation measures. Provide special incentives and spot awards for continued business development efforts. Shift sales rep focus to retention, usage and consumption on sold products and services. Increase accelerated payment levels. Move from billed/collected revenue to new contract/new logo. Shift incentive measures to customer / activity-based measures. Lower target excellence levels for top performers. Remove performance linkages on multiple measures. Review measurement and payout periods to align with current environment. Provide ‘stay bonus’ if creditable threat of performers leaving. Lower threshold performance levels on primary measures. Increase accelerated payment levels. Introduce special incentives and spot awards for continued business development efforts. Lower target excellence levels for top performers.
  • 24. © 2020 Korn Ferry. All rights reserved 8 Be balanced when assessing labor cost reduction alternatives. Ensure your immediate priority is employee well- being. 1 4 Leaders lead by example. Remember this is temporary and prepare for a rebound. 2 5 Tailor actions to fit your organization; learn from others, but “best practice” is what is best for you. Be direct with employees and treat them like adults. 3 6 Principles © 2020 Korn Ferry. All rights reserved
  • 25. More webinars in the series © 2020 Korn Ferry. All rights reserved 9 On-demand Leadingthrough crisis and beyond COVID19 Upcoming: Tomorrow,8 April Keepingyour people engagedand productive through crisis Wednesday, 15 April Leading in timesof crisis Thursday, 16 April Protectingyour company’seconomic health Tuesday, 21 April Social distancing withoutrevenue disruption
  • 26. Thank you for joining
  • 27. LEADING THROUGH CRISIS AND BEYOND COVID19 WEBINAR SERIES KEEPING YOUR PEOPLE ENGAGED AND PRODUCTIVE THROUGH THE CRISIS 8 April 2020
  • 28. SPEAKERS JAMIE PRIDE Client Partner, Korn Ferry Australia JINGQI LI Senior Principal Korn Ferry, China CHRIS MAYLER Senior Client Director Korn Ferry, Australia
  • 29. © 2020 Korn Ferry. All rights reserved 3 Housekeeping © 2020 Korn Ferry. All rights reserved ALL LINES ARE MUTED1 SUBMIT YOUR QUESTIONS THROUGH THEQ&ABOX2 GIVE US FEEDBACK3 WE WILL SHARE THE SLIDES AND RECORDING WITH YOU AFTER THE SESSION4 JOIN OUR UPCOMING WEBINARS5
  • 30. Motivation is critical right now – and can erode fast 4 WHAT MAKES WORK WORK? WHAT’S CHALLENGING RIGHT NOW? WHAT CAN WE LEARN FROM PAST CRISES? Engagement and enablement Engagement = committed people willing to go the extra mile. Enablement = the right people in the right roles with the right tools in the right work environment. Distraction and frustration Distraction – often due to worry at a personal level – erodes engagement. Frustration – often due to difficulty in meeting work goals in a disrupted environment – compromises enablement. Motivation can erode quickly – but is key to recovering at pace. In the 2008 financial crisis, we saw that:  Existing motivation gaps were exposed quickly – and companies that captured/acted on that learning quickly reaped rewards.  Companies that emphasized engagement and enablement during the crisis recovered more quickly. © 2020 Korn Ferry. All rights reserved
  • 31. © 2020 Korn Ferry. All rights reserved 5 Doing more; doing less © 2020 Korn Ferry. All rights reserved LEADERS SHOULD NOT:  Assume everyone has more free time.  Instinctively clamp down on metrics and rules.  Think of employees as one homogeneous group. EMPLOYEES NEED MORE • Prioritization and focus. • Informal connection and mentoring. • Medium-term planning and mobilization. EMPLOYEES NEED LESS • Meeting overload. • Scattered scheduling. • Reporting on “the noise” at the expense of what’s critical. HOW CAN LEADERS BEST ENABLE THE ‘MORE’ AND THE ‘LESS’? Focus on facilitating sharing, generating peer examples, and “group-sourcing”
  • 32. Forging a path forward: looking beyond the crisis 6 Make sure health and safety are top of the agenda. “The leader’s role is to define reality, then give hope.”1 5 Frequent, candid, consistent, and personal communications. Address rew ards and performance metrics. 2 6 Acknow ledge and tackle “the w atercooler gap.” Be realistic about the promise – and the reality – of technology. 3 7 Take employees’ personal challenges seriously – and provide true resources. Give people a voice. 4 8 © 2020 Korn Ferry. All rights reserved *The w ater cooler gap refers to the lack of opportunities employees have to socialise, catch up for a chat and interact in an informal manner, because of the w orking from home restrictions.
  • 33. More webinars in the series © 2020 Korn Ferry. All rights reserved 7 On-demand Leading through crisis and beyond COVID19 Employing agile reward strategies in a volatile world Upcoming: Wednesday, 15 April Leading in timesof crisis Thursday, 16 April Protectingyour company’seconomic health Tuesday, 21 April Social distancing withoutrevenue disruption
  • 34. Thank you for joining
  • 35. Marketing & Sales Practice Adapting customer experience in the time of coronavirus Care, creative thinking, and new tools can address customers’ acute needs today and forge stronger ties in the post-COVID-19 era. April 2020 © South_agency/Getty Images by Rachel Diebner, Elizabeth Silliman, Kelly Ungerman, and Maxence Vancauwenberghe
  • 36. Exhibit 1 GES 2020 Adapting customer experience to the time of the coronavirus Exhibit 1 of 2 Four actions can address immediate customer needs and prepare for the future. Focus on care and concern l Reach out, but with support, not marketing l Make a priority of employees and community l Stay true to company purpose and values Meet your customers where they are l Innovate digital models to help customers weather the crisis safely from home l Expand home delivery options l Consider contactless operations Reimagine the post-COVID-19 world l Economic hard times will force cost cuts l Migrate customers to digital channels to save money and boost satisfaction l Brick and mortar stores may look very different post-crisis Build agile capabilities for fluid times l Tap social media, not surveys, for quick customer readings l Solicit employees for ear-to-the-ground insights l Save time with “test and scale” labs l Pay attention to “failure modes” indicating that you’ve missed customer signals In a short period of time, COVID-19 has over- whelmed lives and livelihoods around the globe. For vulnerable individuals and the customer teams that serve them, it has also forced a rethinking of what customer care means. Suddenly, examinations of customer journeys and satisfaction metrics to inform what customers want have given way to an acute urgency to address what they need. Particularly in times of crisis, a customer’s interaction with a company can trigger an immediate and lingering effect on his or her sense of trust and loyalty. As millions are furloughed and retreat into isolation, a primary barometer of their customer experience will be how the businesses they frequent and depend upon deliver experiences and service that meets their new needs with empathy, care and concern. Now is also the time for customer experience (CX) leaders to position themselves at the forefront of the longer-term shifts in consumer behavior that result from this crisis. Keeping a real- time pulse on changing customer preferences and rapidly innovating to redesign journeys that matter to a very different context will be key. Hand in hand with this perspective, four CX practices can frame short-term responses, build resilience, and prepare customer-forward companies for success in the days after coronavirus. They are: focusing on care and connection; meeting customers where they are today; reimagining CX for a post-COVID-19 world; and building capabilities for a fast-changing environment (Exhibit 1). 1. Focus on fundamentals: Care and connection Now more than ever, people need extra information, guidance, and support to navigate a novel set of challenges, from keeping their families safe to helping their kids learn when schools are shut down. They want a resource they can trust, that can make them feel safe when everything seems uncertain, and that offers support when so much seems to be overwhelming. A baseline starting point: staying true to company values and purpose. Our research shows that 64 percent of customers choose to buy from socially responsible brands, a figure that has grown significantly in the past two years.1 1 Earned brand 2019, Edelman, edelman.com. 2 Adapting customer experience in the time of coronavirus
  • 37. 2 McKinsey US Consumer Pulse survey of 1,073 US participants, 18 years old and above, between March 20 and 22, 2020. 3 McKinsey survey of 1,249 participants across 46 cities in China, February 2020. 4 Chiara Bertoletti, “Coronavirus Nuovi dati sulle vendite della gdo in store e online,” GDOWeek, March 6, 2020, gdoweek.it. The way organizations step up to play this role for their customers, their employees, and the broader community is likely to leave lasting memories in customers’ minds. Care for your customers The first step in caring is to reach out—not in marketing or overt attempts to gain a competitive edge, but to offer genuine support. Many organizations have already stepped up to care for their customers. For instance, Ford’s “Built to Lend a Hand” campaign outlines initiatives including payment relief and credit support. Budweiser redeployed $5 million usually spent on sports and entertainment marketing to the American Red Cross. When tens of thousands of college students needed to vacate their dormitories unexpectedly, a storage rental company offered 30 days of free self- storage. A credit-card company quickly recognized the pandemic’s financial burden and waived one month of interest on credit cards. Government officials have encouraged others to do the same. These experiences are critical for customers in the short term, and the impact will build positive relationships that are bound to last long after the crisis has ended. Care for employees In times of crisis, caring for customers starts with thinking first about employees. As any flight attendant would advise during the preflight safety briefing, it’s important to put on your own oxygen mask before helping others. Our research shows that 60 percent of Americans are very or extremely concerned about their safety and the safety of their families, while 43 percent are very or extremely concerned about their job or income—and not being able to make ends meet.2 Some companies have led with employees in mind during an unsettling period of uncertainty. In a video prepared for employees, Marriott CEO Arne Sorenson transparently shared statistics on the company’s performance and outlook, announced pay cuts for himself and his executive team, and focused on a sense of hope in the future. Many companies have pledged to continue paying hourly workers at their regular rate, even if they need to remain at home due to illness, while others are still paying hourly workers despite store closures. For those still on the job, employers can provide new tools, training and support to enable employees to deliver superior customer experience in a new environment. Care for the community Today’s industry leaders have demonstrated that genuine care should extend beyond the immediate customer base. Italian companies have donated hundreds of millions of dollars to local hospitals and the Civil Protection Agency to combat the virus spread. Many are stepping up to the plate to manufacture important supplies. Luxury-goods companies have refitted cosmetics and perfume production to help produce hand sanitizer. Remote conferencing services companies, who are benefiting from the shift to virtual meetings, have provided free videoconferencing for K–12 schools. 2. Meet your customers where they are today Customers’ normal patterns of life have come to a halt. Simple activities like a trip to the grocery store or dining out with friends are now difficult, risky, or even prohibited. Overnight, demand patterns have shifted. Overall online penetration in China increased by 15–20 percent.3 In Italy, e-commerce sales for consumer products rose by 81 percent in a single week, creating significant supply-chain bottlenecks.4 Customers need digital, at-home, and low-touch options. Digital-led experiences will continue to grow in popularity once the coronavirus is quelled, and companies that act quickly and innovate in their delivery model to help consumers navigate the pandemic safely and effectively will establish a strong advantage. Accelerate digital options Digital delivery has become a necessity for most customers who are confined at home. Adoption 3Adapting customer experience in the time of coronavirus
  • 38. has grown strongly, even among the most “digitally resistant” customers. For some companies, the rapid development of digital functionalities is key to ensuring continuity of services. China-based Ping An Bank rolled out new “Do It At Home” functionality and received more than eight million page views and nearly 12 million transactions within half a month. Players in service industries have also accelerated digital value-added services like advice and education. Over 44,000 viewers tuned in to Bank of China’s first three online shows, where leading investment managers shared market insights, discussed the impact of the virus, and gave advice. Other companies are making select digital services free to help existing customers and broaden their reach to new audiences. Fitness companies are deploying this strategy through extended free trials for their online and app-based classes, where app downloads and new sign ups have grown between 80 percent and more than 250 percent in recent months. It’s likely that many customers who have converted to digital services will stick to them after the immediate health crisis is over: Companies who make this shift to digital and deliver superior experiences have an opportunity to increase adoption and maintain these customer relationships after the crisis. Bring your business to customers’ homes Similarly, home delivery has gone from a convenience to a necessity: during this crisis, Italy has seen online grocery home-delivery users double between February and March.5 In China, Meituan, China’s premier food delivery service, reported quadrupled delivery orders in early 2020. Quick-service restaurants and aggregator apps are offering free delivery to capture share in this demand shift. Some fresh meal delivery start-ups have experienced a month-on-month demand boost of 25 percent and are experimenting with bulk versions of their offering. In the United States, home delivery options have expanded beyond food, as pharmacies offer extended free trials on their prescription delivery service, and car dealerships offer to pick up and drop off vehicles repair and maintenance. Make physical operations touch-free If part of the customer journey must exist in a physical channel, consider converting to contactless operations. The United States has seen a 20 percent increase in preference for contactless operations, with numerous industries adapting to this change. Meituan, which started as a food- and product- delivery service but evolved into a digital ecosystem player, was the first Chinese company to introduce contactless delivery in Wuhan.6 The service quickly became popular among all audiences, enabling Meituan to reach beyond its core millennial customer base—more than two thirds of new users are in their 40s and 50s. In the United States, Walgreens has rolled out a drive-through shopping experience. Customers order from a menu of available items such as household goods, medical supplies, and groceries. Store associates assemble and check out the order—all from the convenience of the drive-through The way organizations deal with their customers, their employees, and the broader community in a crisis is likely to leave lasting memories in customers’ minds. 5 Madeline Lenahan, “COVID-19: Impact on food and drink,” Apptopia, March 12, 2020, appotopia. 6 In contactless delivery, customers order online or via phone, and the delivery is dropped off at a pre-specified location to minimize interpersonal interaction. 4 Adapting customer experience in the time of coronavirus
  • 39. window. Grocery chains have kept their physical stores open to shoppers but are adding touchless measures, including new installations of plexiglass “sneeze guards” at every cash register to protect customers and employees. 3. Reimagine customer experience for a post-COVID-19 world The COVID-19 crisis will end at some point. We expect changes in consumer preferences and business models to outlast the immediate crisis. This has begun to play out in China, where there has been a 55 percent increase in consumers intending to permanently shift to online grocery shopping, and an increase of three to six percentage points in overall e-commerce penetration in the aftermath of COVID-19.7 Some consumers will be trying digital and remote experiences for the first time. In China, the share of consumers over the age of 45 using e-commerce increased by 27 percent from January to February 2020, according to Chinese market-research firm QuestMobile. Once they are acclimated to new digital or remote models, we expect some consumers to switch permanently or increase their usage, accelerating behavior shifts that were already underway before the crisis. Further, once the public-health crisis has subsided, economic impacts will persist. Leading companies will deliver on the customer experiences that are emerging as most important in the “next normal,” while finding ways to save and self-fund. Find savings without sacrificing experience In a downturn, cutting costs is inevitable. But that does not have to come at the expense of a good customer experience, which can create substantial value (Exhibit 2). Often, the best ways to improve experience and efficiency at the same time are to increase digital self-service and to make smarter operational trade-offs, grounded in what matters most to customers. In industries like banking, digital servicing and sales are less expensive than branch- and phone-based approaches. The problem for many banks is that too few customers reach that point because they find digital channels unfamiliar and intimidating. Migrating customers to digital channels is often a successful way to boost savings and satisfaction. Teams can adopt this customer- centric mindset in any cost-cutting exercise, including migrating customers to self-serve channels, radically simplifying a product portfolio, or optimizing service level agreements. Reimagine your brick-and-mortar strategy So far, 60 US retailers—representing $370 billion in annual sales and over 50,000 physical retail locations—have closed temporarily.8 The market capitalization of physical retail space has fallen by more than 35 percent.9 When stores reopen, the world of brick and mortar may be fundamentally different. More and more customers will have grown comfortable with digital, remote, and low-touch options, even in rural and older populations. We expect to see the shuttering of underperforming stores. Retailers and consumer goods companies should plan now to capture this lost volume. Use mobile, online and geospatial data to optimize networks and omnichannel sales. Examine dynamics across digital channels, owned outlet stores, and wholesale partners. Companies should also re-examine the role that physical locations will play. Omnichannel fulfillment options such as buy online, pickup in store will increase. Some locations may be converted to “dark stores” for fulfillment only. Finally, some existing stores may shift toward experience hubs that offer services and encourage purchase across all channels. Consider Nike’s store in New York’s SoHo neighborhood. There customers, assisted by a personal coach, can try on shoes in various simulated sporting environments— including a basketball half-court, soccer trial field, and outdoor track—to determine their preferred 7 McKinsey survey of 1,249 participants across 46 cities in China, February 2020. 8 “Coronavirus and store closures: Tracking America’s retailers and restaurants,” Wall Street Journal, March 26, 2020, wsj.com. 9 Google Finance, March 6, 2020, finance.google.com. 5Adapting customer experience in the time of coronavirus
  • 40. product. As the forced isolation of coronavirus fades from view, this type of outlet may be a template that additional retailers will adopt. 4. Build capabilities for a fast-changing environment Maintaining a strong customer experience in crisis requires rapid research to understand changing dynamics and new pain points as well as agile innovation to address them. Customer leaders who master that approach will create value for consumers in high priority areas and in an environment of increased competition. Keep a real-time pulse on changing customer preferences Traditional customer insights techniques, such as surveys, often have an 18- to 24-day lag between launch and results readout. At a time when conditions can change from hour to hour, that can be far too long to deliver useful perspective. Companies should look to quick and novel ways to keep a pulse on consumer sentiment. In Italy alone, Facebook has seen a 40 to 50 percent increase in usage since the crisis began. A surge in online usage now underway offers opportunity to tap into insights from social media to rapidly understand consumer sentiment and develop new ideas. One Chinese rental car company established a team focused on monitoring social media to identify real-time trends. Exhibit 2 Adapting customer experience to the time of the coronavirus Exhibit 2 of 2 Focusing on customer experience is a winning strategy in recession. Total returns to shareholders of customer experience leaders and laggards,1 % by quarter 1 Comparison of total returns to shareholders for publicly traded companies ranking in the top 10 or bottom 10 of Forrester’s Customer Experience Performance Index in 2007–09. Source: Forrester Customer Experience Performance Index (2007–09); press search –800 –700 –600 –500 –400 –300 –200 –100 0 100 200 300 Leaders Laggards higher returns for shareholders over 2007-09 recession from customer experience leaders 3× 2007 2008 2009 2010 6 Adapting customer experience in the time of coronavirus
  • 41. In Shenzhen, where employees were asked to avoid using public transit, it rolled out a “rent five days, get one free” offer that allowed people to expense a weekday carpool for work and keep the car on Saturdays to run personal errands safely. Listen to employees Frontline employees are a company’s eyes and ears on the ground. Solicit and collect employee feedback: it will prove useful in gauging how customers are feeling and how daily interactions are changing. Sadly, this source of insights often goes largely overlooked—while 78 percent of frontline employees report that their leaders have made customer experience a top priority, nearly 60 percent say they believe that their ideas for improving that experience often go unheard.10 Tools and technology now exist to rapidly collect and aggregate real- time ideas and feedback from frontline employees. Investing in these can make a critical difference in the rapidly changing current environment. Adopt agile innovation The sooner that companies can fulfill new consumer needs during this time, the better off both will be. This often means accelerating time to market for new customer experiences, rapidly prototyping and iterating, and releasing innovations in their “minimum viable” state, rather than waiting to perfect them. Building agility across functions to handle changing customer circumstances is necessary and will have long-lasting benefits. Typically, test-and- scale labs allow companies to build new experiences with 50 percent reduction in speed to market. In addition to agile approaches, companies should rapidly examine their innovation pipeline to set priorities for new customer experiences that line up with remote, digital, or home delivery trends; these will likely continue to accelerate and differentiate CX providers in the post-COVID-19 world. Finally, customer leaders shouldn’t take their eyes off of “failure modes” that can hurt if overlooked. When it comes to demonstrating care toward employees, make sure to double down on supporting employees—customers will notice and appreciate this as well. Don’t assume that customers will automatically migrate to existing digital and remote platforms. Rather, actively raise awareness and the internal capabilities needed to support adoption of these experiences. As for securing useful feedback, if the volume of customer insights and feedback from sources like social media and employees has not increased severalfold in an intense crisis environment, take it as a sign that you are missing critical insight needed to adapt experience. Customer experience has taken on a new definition and dimension in the overwhelming challenge of COVID-19. Customer leaders who care and innovate during this crisis and anticipate how customers will change their habits will build stronger relationships that will endure well beyond the crisis’s passing. 10 “Finding the way to happy customers through the voice of your employees,” Medallia, medallia.com. Note: McKinsey & Company is a partner with Medallia in conducting research, compiling data, and developing customer analytics. Designed by Global Editorial Services Copyright © 2020 McKinsey & Company. All rights reserved. Rachel Diebner is a consultant in McKinsey’s Dallas office, where Kelly Ungerman is a senior partner; Elizabeth Silliman is an associate partner in the Boston office; and Maxence Vancauwenberghe is a partner in the New York office. The authors wish to thank Rebecca Messina, Robert Schiff, and Will Enger for their contributions to this article. 7Adapting customer experience in the time of coronavirus
  • 42. Managing through crisis and preparing for the post-outbreak era A CHEAT SHEET FOR LEADERS Without question, 2020 will test your leadership and the ability of your organisation to operate in the face of ambiguity. This cheat sheet is a practical guide to help you work through what that means for you and your people. 2020: a year of two halves It is impossible to do well in any cycle without thinking about and planning for the next one. You are most likely grappling with two equally important factors – keeping employees and their families safe, and ensuring business continuity and survival. Eventually, the pandemic will end. And when it does, you need to be ready – for a resurgence in customer demand, and very different ways of working. . Leadership: now is the time for adaptive leaders Right now, it’s time for calm, inclusive leadership. In times of crisis, people depend on leaders to provide clarity and hope. Over-communicate – Drive a sense of collective purpose and optimism. Stay connected via video updates and social channels. And be honest and genuine: it’s OK to admit you don’t know all the answers. Be prepared to make hard decisions – Sometimes there are no easy solutions. Be clear, compassionate and upfront – now is not the time for mixed messages. Re-frame this challenge – Can you use a down cycle as an opportunity to grow? You may now have time to implement major initiatives, or pivot to meet shifts in customer demand. “Don’t retract. Many healthy organisations are taking this time to set themselves up for a big move.” Tim Wiseman, Korn Ferry Client Partner Once you start to see signs of recovery, make up for lost time and take advantage of the pent-up demand in the global economy. Get ready to set the pace, and build a sense of positive momentum. What leaders need to consider now: Leadership: Now is the time for adaptive leaders Corporate Culture: Making the case for change Employee Engagement: From emergency response to greater resilience Performance and rewards: Re-thinking plans through times of crisis
  • 43. Culture: making the case for change How well can your people and systems operate under unanticipated pressure? Disruptive change can be a catalyst for a shift in culture – so if that is a leadership priority, now is your moment. “A left field event like this will result in people asking ‘what can we do better?’ Solving major supply chain, customer demand or employee safety challenges starts with your organisation’s DNA.” Sharad Vishvanath, Korn Ferry Client Partner Culture change needs to begin at the top: when you change your behaviours, teams will follow. Address any weak points – Prioritise the dimensions of culture for your industry. It might be agility in collaboration, or a long-term horizon to manage risk. Build capabilities quickly – How can you help your team adjust to these new behaviours? Do you need to bring in people with different values or mindsets? Create centres of excellence – Remote and dispersed teams still need guiderails. Make sure your organisation’s processes and systems support your culture shift. Engagement: from emergency response to greater resilience Organisations that get employee engagement right today will have a better chance of ensuring business continuity in the short- term – and retaining talent once the crisis has passed. “People want clear guidelines – they need to know the organisation is taking precautions to safeguard their wellbeing.” Jingqi Li, Korn Ferry Senior Principal Prioritise duty of care – Set up an emergency response team to co-ordinate external information to provide clear guidelines. Internally monitor and record every case of the illness. Be a visible, inclusive leader – Convey confidence and reassurance. Act quickly on employee feedback, and have many lines of communication open – from pulse surveys to virtual town halls. Equip people to work remotely – Give them the right tools to share ideas and stay connected, and lead through example. Use any downtime wisely by providing remote learning and development opportunities. Performance and rewards: re-thinking plans through times of crisis In uncertain times, transparent and consistent performance management plans and rewards are more important than ever. Avoid making rash, short-term decisions that could lead to future retention challenges. “As much as economically possible, I would suggest riding out the storm. Supporting staff now will win hearts and minds for a long time.” Trevor Warden, Korm Ferry Client Partner Split the year in two – Set collective performance targets to see the organisation through this first half, and avoid irrational goals. Return to an individual scorecard approach once the crisis has passed. Differentiate performance – Recognise those who were doing a great job before the crisis, and manage their rewards and performance differently – or you’ll risk losing them later. Look for alternatives to lay-offs – Ask for volunteers for reduced hours, reduced pay for those above a certain salary bracket, or taking paid or unpaid leave. You could cover a percentage of a high-performer’s salary while freezing their role. Visit our website for more practical advise on managing through crisis: kornferry.com/challenges/coronavirus