It is not news that the future crisis can be disastrous. After the end of the pandemic, with an increasingly uncertain date, despite the start of vaccination campaigns, the effects of the recession right now are incalculable, with great doubt hovering over whether recovery will really be as fast as experts believe. . The business sector will likewise suffer the severe consequences of coronavirus, and therefore it has to adapt to the new times coming.
According to the World Bank, extreme poverty will increase for the first time in 20 years, and the number of people living on less than $ 1.90 in the world will increase by at least 50 million by 2021. Similarly, Oxfam recalled that pandemic will lead Spain to unprecedented levels of poverty, leaving another million people below the poverty line, reaching 10.9 million people.
Wafa Khlif, professor of managerial accounting at TBS in Barcelona and head of the research laboratory of the business school, in exclusive statements for “Bolsamanía”, has no doubt that an unprecedented recession occurs: “This crisis is expected to be the most violent since World War II.” “The effect on business will be almost immediate,” he added.
With the latest data from the National Institute of Statistics (INE), the company’s turnover fell by 9.4% in November, adding up to nine consecutive months in the negative. These data highlight the problem facing the sector, with the largest collapses in Services (-18.6%), Trade (-9.4%) and electricity and water supply (-6.9%), while
In this sense, Khlif considers that the Arabic proverb “the disaster of one man is the opportunity of another” has been put into perspective. Thus, the enterprises belonging hospitality and small business collapsed “compared to others that flourished”, such as those related to the pandemic, in the field of health and others indirectly related, such as consulting companies or alternative transport, among others.
ADAPTATION OR REVERSE?
Professor TBS appreciates that companies, by applying adaptation strategies, “have made an effort to change their behavior to create or strengthen competitive advantages which ensures a satisfactory level of performance“The problem comes when this process is done” without knowing past experience, existing models and socio-political speculation. “
Therefore, he states that all this is no longer useful because “the future adaptation strategy it must be based on breaking and sacrifice“, two imperatives for which companies, at this time,” unfortunately are not prepared. “
As for the business models that will be successful in the future, he explains this the democratic component is essential, putting people at the center of the debate: “What can we do together?” He says companies need to “value skills and not start firing people to cut costs”.
He also points out that there is two aspects of work that have been strengthened with the pandemic. On the one hand, business focused on the individual and based on psychology, wellness, medicine or sustainability; and on the other hand, those focused on pure technology, such as automation, the Internet of Things or finance. In general, “all professions that involve man or technology.”
However, Khlif estimates that both ends could self-destruct at any time in the face of current and future uncertainty. To address this, “a redefinition of the notion of responsibility must be at the heart of our policies,” about how to relearn how to live and work together.
THE FUTURE OF BUSINESS, IN THE AIR
Months of uncertainty are expected in the economy, and the decisions people make are more at risk and in doubt than ever before. Khlif believes that the basic problem is learning, based “primarily on superficiality and technicality”. “Citizens rediscover the fact that learning does not stop at graduation and that coexistence is above all to debate and respect the other in their difference. The long-term entrepreneur notices what is missing for a better society and is not just looking for market opportunities, ”he adds.
Investment is another important component of tomorrow’s business financing, and the professor suggests that it is “based on a belief system.” In this regard, he states that “the best investments are still responsible and diversified investments, even if they really depend on the level of risk aversion of each “in the same way that”cannot be saved passively and expect a double-digit return on investment. “
With these predictions, however, Wafa Khlif believes that no one knows what the future holds for business. “The best way to deal with uncertainty is to be open to anything, even the collapse of the current system.” With this in mind, he urges companies to “accept change, recover, face their fears and mistakes and accept new challenges.”