Recovering profitability is a difficult task for companies in sectors affected by the crisis. The context is very different now and therefore the assumptions or working principles are no longer similar to the pre-pandemic period. The reformula-tion of the strategic agenda is necessary. But not as a return to what it was before, but as a solid foundation on which to build value. This strategy must contain three key elements: trust, technology, and people.
1. Trust is key in business
In a hyperconnected, increasingly virtual environment, trust matters more than ever. People want to trust the organiza-tions they buy from, work with, and invest in. In a world where value is increasingly intangible, where brand capital, innovation and employee involvement are, in many cases, more valuable than physical goods, trust is the standard currency.
More and more research shows that the role of companies should not be limited to their economic activity cut from the broader context that contains them. Stakeholder expectations from companies have increased to have a positive im-pact through sustainability, to support environmental protection, inclusive growth and the need to measure and report on these issues.
The importance of trust was followed by a reconsideration of corporate reporting on transparency. This is forcing a shift in focus from short-term profit to positive long-term impact on people, the environment and measured non-financial metrics, not just profit and loss figures.
Non-financial data that is clearly linked to the organisation's strategic priorities and communicated in a cohesive man-ner can help companies address the mismatch between current financial reporting and stakeholder expectations.
2. Technology fosters cybersecurity
Moving to an online environment has not given companies time to test their digital infrastructure. The stress test on people and technology was real-time. While some companies have been more cautious because their business model has benefited them and they have managed to thrive, others have struggled to survive.
B2B companies have begun to look at individual consumers. Great efforts are being made by these companies to per-sonalize and provide the best possible experience for these consumers. But significant investment is needed to build the technological infrastructure that supports this level of digitization.
In the light of increasing public awareness of ethical, confidentiality and security risks, the human-technology interface will be crucial for future success. To successfully exploit technology, companies need to train their people. It also needs to cultivate a transformative mindset across the organization to harness the potential of technology and enhance employee experiences in an increasingly virtual world.
3. People are the source of innovation
The binder and ultimately the center of organizational activities are the people. One of the key lessons of the pandemic is that organizations and markets cannot be separated from employees, customers, partners, consumers and other stakeholders. There is no virtual business. Even companies born in the digital space, with few physical assets, rely on the ingenuity and excellence of real people.
The most advanced innovations, or state-of-the-art technologies, can fail if they lose sight of human values. Creating value requires leadership based on shared values and supporting the development of new leaders and specialists. The way in which the company can make or deliver products and services that involve customers in a different way means understanding that personalized experiences are the essence of consumption. Any point included in the strate-gy for economic recovery must be filtered through the human lens.
As companies seek to reshape their future, they receive the support vote of investors, customers, employees, and soci-ety at large to become an organization that creates long-term value for various stakeholders. This transformation re-quires companies to build trust, invest in technology and put people at the center of decision-making. It is a transfor-mation that is worth the effort, because the goal is a stronger market position, accelerated growth and a better world for employees and all stakeholders.
About PKF Finconta
For more than 27 years, PKF Finconta is one of the 10 leading professional services companies in Romania. Since 2006, we are a member of PKF International Limited. PKF International is a leading international business advisory organization. The company grew consistently over the years, forming a Group of four companies: PKF Finconta, PKF Finconta Consultanta, PKF Finconta HR, and Finconta Consulting SPRL, members of national professional organizations CECCAR, CAFR, CCFR, and UNPIR. We provide a wide range of business advisory and related specialist services. We have seven core areas of expertise and within these areas, we tailor our services to your business and your needs: audit, corporate finance, tax, bookkeeping, and accounting advisory services, transfer pricing, payroll and personnel administration, and insolvency.