The “New Normal”

The “New Normal” is a much-used phrase in these uncertain times, a phrase that implies we can define exactly what it means, which of course we cannot.

However, I think there are some characteristics of the phrase that, at a basic business level, we can be confident about.

• Primary among these, will be the need to earn an income - Abraham Maslow was pretty astute. How to do it at the right level and safely will be challenging, but the basics of excellent and revisited cash management and profitable trading will be key.

• Another key characteristic will be the old adage, “people do business with people”. The most successful businesses cherish their employees, their customers and their suppliers and this will still be the case going forward. Once again, how it happens will be challenging but re-connecting positively will be vital - albeit in a changed business environment.

• The third characteristic underpinning the “new normal” is adaptability. All businesses that survive and regain success will have done so because they have found means of adapting their business model and processes to the new environment. We cannot hide from how difficult this will be for many and businesses will undoubtedly fail - Michael O’Leary (Ryanair) alluded to this when he ridiculed the notion of running planes with the middle seat empty and he spoke for many cinema, restaurant, theatre and sports businesses (among others) in expressing that view.

So, whilst no futurologist can predict accurately the “New Normal”, the fundamental characteristics of those businesses that continue to succeed can be defined - a desire and need to succeed underpinned by excellent business practice; the ability to re-connect with people in a meaningful and mutually beneficial manner; and adaptability.

The challenges are not to be under-estimated but, at this bleak time, we need to start planning for the future. Every company will of course have individual problems that require bespoke solutions.

If you would like to find out more about how we can help your business, we would love to hear from you.