Companies today face challenges in assessing what types of changes to make.

The pandemic’s impact has been changing. It looked like the economy was on the path to reopening. For example, a picture in the media shows a company photo where employees are all seated close together, with no signs of social distancing. Additionally, a greater number of people are travelling and taking vacations, and the Wall Street Journal (July 23, 2021 issue) reported that American Airlines and Southwest were profitable again. Essentially, more and more of the economy has been opening up. Since, the reopened business environment can be quite different from pre-pandemic times, companies must determine how to best compete. Thus, many companies have to think about how to change.

At the same time, however, some signals indicate that variants of the virus may potentially threaten the economy’s reopening. In fact, there have been reports of large corporations planning further delays in bringing workers back to the office. And, stricter requirements regarding masks have been reinstituted as new variants of the virus become more prevalent. Thus, at the same time as the economy seems to be reopening, other signals suggest that the pandemic is continuing on.

The mixed signals regarding the pandemic make it more difficult for companies to plan. As I’ve explained in a previous newsletter, the pandemic related recession has been very different from most recessions. Makers of cleaning products like Lysol and toilet paper producers, as well as food companies like Campbell Soup, did well during the pandemic. But, as the Wall Street Journal recently reported (July 28, 2021, “For Some Pandemic Winners, Boom Is Ending”; also July 28, 2021 “Lysol’s Owner is in Germ Limbo”), the makers of these products are no longer reaping the benefits of the pandemic. So, as pandemic on again signals conflict with signs of a reopened economy, these companies face challenges in determining their business strategies.

Thus, many companies today are grappling with the issue of how to plan for the future. As the business environment keeps shifting, companies have to determine the best changes to make. When making these changes, however, it can be easy for them to choose changes that do more harm than good. In fact, during times of change, companies can often be the most vulnerable. On the other hand, times of change can sometimes represent tremendous opportunity.

So, a critical element for success is making the right kind of changes. Since information is available about what types of changes succeed and what types generally fail, companies should make winning changes, which are the changes that succeed.

Winning changes generally build on company strengths. With a few exceptions, winning changes are generally situations where only selected pieces are changed, rather than where changes are extensive or all-encompassing. Winning changes entail prudent risks, not high risks. And, of course, winning changes are not panic driven, but are based on selecting well thought out strategic choices that are likely to succeed.

In conclusion, as companies deal with the twists and turns that the pandemic takes, they should strive to make only the kind of changes that can succeed. They need to evaluate the changes they are considering, and strive to select only winning changes.