Q&A: Returning to work in the new normal
May 2021 | SPECIAL REPORT: BUSINESS STRATEGY & OPERATIONS
Financier Worldwide Magazine
May 2021 Issue
FW discusses returning to work in the new normal with Jerome Ryan at BDO.
FW: Could you provide an overview of how the coronavirus (COVID-19) pandemic has impacted daily working practices across the business world?
Ryan: After the initial shock, we settled into a rhythm that has worked surprisingly well. Companies that once said there was no way they could let their employees work from home were forced to transition to this environment and found that by and large it worked. In some ways, office work is now more segmented and structured, driven by calendared meetings and zoom calls. However, employees and supervisors need to be more cognisant of setting aside focused work time or they are in jeopardy of having others dictate how their time is spent. Businesses also need to recognise that employees are typically balancing working from home with other priorities. This is clearly illustrated with working parents who found themselves managing their children’s remote learning obligations with their own work needs.
FW: Given the extended duration of the pandemic, how have business continuity plans (BCPs) – which are typically designed to cover a period of only 4-6 weeks – faring?
Ryan: Business continuity plans that were developed before or at the start of the pandemic served their purpose in the initial weeks and months following its onset. But the disruption to the workforce, business operations and technology has outpaced the projected timelines. What has followed is an acceleration of digital transformation initiatives that has ushered in a ‘new normal’ for business. Despite continued uncertainty around the duration of the pandemic, companies will need to take an honest inventory of how they handled the incident and complete a thoughtful after-action report. The lessons learned will likely force businesses to reconsider many of the assumptions they once held about business recovery. For example, companies have traditionally contracted for ‘hot seats’, which are ready to use workstations that typically sit vacant at an alternate site. These alternate sites are costly to maintain and, considering the new paradigm of a post-pandemic world, not necessary for all but a few operations, such as trading desks. The default alternate worksite for most employees will now be their home.
FW: To what extent have productivity and creativity suffered in the remote working environment?
Ryan: At the start of the pandemic, companies were concerned about how effectively they could transition their staff and processes to remote work settings, while also maintaining productivity, collaboration and company culture, and understandably so. But what was overlooked is that even prior to the pandemic, companies had a strong tradition of allowing employees to work from home, which did not jeopardise these priorities. For the duration of the year, success has been reflected in companies’ transparency, consistent communication with staff and stakeholders, and ability to support employees’ evolving needs. By prioritising the wellness of the workforce, companies are able to bolster trust and a sense of security for staff, which will ultimately result in continued productivity levels and employee morale. Alternatively, some companies have transitioned to facilitate a balance between in-person and remote work. The more likely outcome here is that employees will be given profiles that indicate how often they need to work in an office setting. Based on those profiles, corporate real estate groups can determine both workstation and collaborative space needs. Company performance is at its best when employees build bonds and trust one another. The challenge going forward will be to balance real estate costs, employee work preferences and collaboration needs to generate the best possible outcome for the company.
“Companies must take into consideration the new technology environment they now operate in and reconsider their approach to securing networks that include endpoints in a remote working setting.”
FW: What issues need to be considered with regard to employee vaccinations? Should companies require or incentivise their employees to become vaccinated – and what legal implications might be triggered?
Ryan: Over the past few decades, many companies have adopted measures to promote healthy choices among employees. Pre-pandemic, some companies even incentivised their employees to help encourage the adoption of an annual physical or annual flu shot. Incentives ranged from an extra vacation day to a financial reward. I think this is the best approach for most companies when considering the COVID-19 vaccine. An approach that includes incentives would essentially gamify the process for encouraging vaccinations. Individuals typically will respond more positively to this approach versus a mandate.
FW: With large numbers of employees working from home, what advice would you offer to companies on securing their network? What risks and exposures do they need to mitigate?
Ryan: For cyber attacks, bad actors have certainly embraced the old adage of never letting a good crisis go to waste. We have seen a significant uptick in cyber security activity ranging from phishing campaigns to ransomware attacks to social engineering. Companies must take into consideration the new technology environment they now operate in and reconsider their approach to securing networks that include endpoints in a remote working setting. The best way to secure networks is to promote a cyber risk aware workforce. This includes ensuring frequent and proper training is conducted so employees understand both the threats they may face, and the preventive measures required of them. Ethical company-sponsored phishing campaigns can be conducted to help enforce the message and promote good cyber behaviours.
FW: What actions can companies take to validate that the crisis management and BCPs of their third parties are sufficient to not expose them to a potential business interruption themselves?
Ryan: As companies become more secure with their crisis response and recovery plans, they are shifting focus to validating operational resilience with critical third parties. Driven by regulations, banks in the US and select other countries have been required to build third-party risk management programmes for the better part of a decade. We are now seeing these programmes trickle down to other industries through customer mandates.
FW: Looking ahead, do you believe the work changes introduced in response to COVID-19 will persist beyond the pandemic? Will companies need to shift their mindset to become more agile?
Ryan: Operational changes necessitated by the pandemic may be here to stay, and that is a good thing. Companies have been forced to embrace new technologies, and workers and consumers hesitant to try new technologies are also now more likely to opt in. We had to pause business as usual and consider a safer way to go about daily operations. The companies that did this well not only survived during the pandemic but thrived. For many the game changed, and it changed permanently. In response, companies will have to take a second look and analyse their efficiencies and implement new processes to navigate the new age and ensure cost optimisation and technological advancement. For example, real estate is typically the second largest expense for a company after compensation and is being reconsidered through the lens of optimisation and collaboration, instead of permanent workspaces. Employees will also benefit from an improved work/life balance and the flexibility to utilise work from home options going forward. Collaborative technologies got us through the pandemic and will be the glue that helps hold this new working environment together into the future.
Jerome Ryan is a director in BDO’s crisis management and business continuity practice, focusing on domestic and international application of risk management and resiliency. Creating holistic resiliency programmes, he helps clients to realise better outcomes for their business operations. He serves on the board of directors for Disaster Recovery Institute International (DRII), the world’s largest education and credentialling organisation for resiliency professionals. He can be contacted on +1 (617) 239 4158 or by email: jryan@bdo.com.
© Financier Worldwide
Business strategy & operations
Q&A: Data analytics and credit decisioning capabilities
Closer than you think – quantum computing in finance
What it takes to navigate the insurance strategy-to-execution gap
Setting strategy and taking growth to the next level
Measuring innovation: how logic models can help
Taking back control of e-discovery
Key requirements of a supply chain compliance programme for durable goods manufacturers
Risk management lessons from winter weather
Anti-corruption practices and strong commercial relationships