The COVID-19 crisis caused many businesses to make crunch decisions such as rapidly pivot offerings or building out new products/services. Often we hear stories of how big companies (e.g. Uber pivoting away from ride-sharing to food delivery) have done this (or not as the case may be), but rarely do we hear of pivots by small or local businesses.
In the course of research for my REIGNITE! 2020 Report which analysed strategic responses of 439 international organisations (large and small) around the world between March-June 2020, I came across many inspirational stories of incredible small business pivots.
In a recent speech to the NED Forum (slides here), I described the story of one particular business who had managed to turn crisis into opportunity.
To tell the story of a brilliant pandemic pivot by a small business, I’ve pasted the excerpt from the talk below:
Let me tell you a quick story about ABC Learning Company, based here in Gsy. Obviously that is not their real name but I came across them in some research I did during Q2 and lockdown.
In the research which later became the REIGNITE 2020 Report – which I’ll introduce shortly – there was so much devastation across sectors including travel, hospitality, retail, construction, manufacturing, and so on.
In fact 50% of the 439 leaders surveyed were in total despair, in terms of closures, restructuring, uncertainty and so on.
However…there was a glimmer of hope!
About 10% of businesses were doing extraordinary things. They were using the crisis as an opportunity to reset, rethink, and reinvent. They were pivoting, quickly using technology to launch new offerings, testing new business models, and at the same time becoming more efficient, productive and reducing costs.
In terms of ABC Learning, it was a typical lifestyle business providing high school tutors, owned by one person with 5 tutors on the payroll. No online presence, web-site or anything. Business stopped overnight with lockdown, but by rethinking things quickly and using simple online and digital tools – google spreadsheets for CRM and bookings, zoom for delivery of live sessions, stripe for online or over the phone payments, the owner was not only able to quickly survive but doubled revenue during lockdown, hired 10 more tutors on contracts, and created a scalable solution which allowed for recorded training on-demand on popular topics. So better CX, more revenue and profits.
So what is interesting here is the combination of human psychology and business strategy during a crisis: so how did the leader reinvent whilst everyone was retreating, what can we learn, and how can we emulate this for our own contexts
This is what underpins today’s talk and certainly the REIGNITE 2020 Report which I’ll introduce shortly.