Four business orthodoxies to challenge in 2021

COVID-19 has forced many organisations to upend standard ways of doing business. Some of these deep-rooted practices should have been challenged long ago.

In 2020, many organisations dramatically changed operations and processes in response to the pandemic. Amid massive economic and societal upheaval, companies had to pivot quickly and redesign workflows, decision-making processes, supply chains, and business models. Many organisations found that traditional business beliefs no longer applied.

While the shift was highly disruptive, some of these tenets were overdue for a rethink. In the new year, leaders can better position their organisations for recovery and improve them in the long run by questioning long-standing business doctrines, including four in particular:

Orthodoxy No. 1: Digital transformation should be modelled after previous IT successes.

One of the more prevalent, yet limiting, ways organisations are approaching digital transformation is by using the effective implementation of a prior IT system as the road map for the next one. This mindset can hamper an organisation’s digital transformation. Companies that implement technology with agility in mind can respond more quickly to change. Indeed, the ability to be nimble has proved valuable throughout the pandemic as organisations have been forced to quickly change the strategy, funding, and prioritisation of major technology initiatives.

Challenging this orthodoxy also requires rethinking the key stakeholders in technology initiatives. To succeed at digital transformation, organisations should involve not just the chief information or technology officer but other C-suite executives, such as the CMO and the chief talent officer, in tech investment decisions. Companies whose top leaders are fluent – and active – in applying tech-based solutions to business outcomes will likely achieve the biggest gains.

Orthodoxy No. 2: Market disruption belongs to new entrants.

Some established organisations have responded to the pandemic with innovative technology and solutions, proving that new entrants don’t necessarily have a competitive edge when it comes to disrupting markets. Organisations that have held significant market share over time have a greater ability to scale during periods of significant change. For example, some incumbent retailers are using physical stores, sales associates, and supply chains in combination with online capabilities to provide more convenient and cost-effective ordering, pickups, and returns during the pandemic – a competitive advantage over more disruptive online retailers.

In another example of disruption, a team at a 100-year-old global industrial equipment manufacturer created a sharing economy for its heavy equipment. The team observed multimillion-dollar machines sitting idle, which cost machine owners money in upkeep without generating revenue. Using sensors and internet of things data, the team developed a subscription model for machine owners, creating a new market for the organisation and adding value for customers.

Incumbents can disrupt themselves more often by aligning with other organisations – startups, educational institutions, nonprofits, companies from other industries, and even competitors – to accelerate innovation.

Orthodoxy No. 3: Diversity, equity, and inclusion are for HR and are about increasing representation.

A genuine focus on diversity, equity, and inclusion (DEI) can become one of 2020’s (few) positive legacies. Inclusive organisations are twice as likely to meet or exceed financial targets and eight times more likely to achieve better business outcomes than those that are not inclusive. Organisations have made progress, but many still limit DEI efforts to merely increasing representation. To build a more inclusive culture, organisations can look across their organisations for ways to strengthen DEI. Here are three areas to consider:

• Mentorships and sponsorships.

Ensuring people are supported, mentored, and advocated for is critical to advancing DEI. Creating meaningful relationships isn’t just about matching names on a spreadsheet – it’s about ensuring that employees get effective support daily.

Many organisations are developing systemwide initiatives to identify and address individual and organisational biases and inequity. Deloitte’s Tech Trends 2021 report examines how organisations are using technology to advance DEI with their teams, stakeholders, and customers.

• Societal impact. The killings of George Floyd, Breonna Taylor, and Ahmaud Arbery, along with protests calling for social justice, have energised many companies to donate to DEI-focused organisations. Leaders can also consider creating volunteer opportunities for employees with nonprofit organisations focused on DEI.

Orthodoxy No. 4: Sharing of complex or nuanced information should be limited.

In almost every organisation, some people have access to information and some don’t. Furthermore, if information seems too complex, leaders often view dissemination as a risk – and restrict information flow accordingly. One consequence of this orthodoxy is information privilege, in which some people hoard data to advance their own agendas, careers, or teams. This not only goes against the values of an equitable, inclusive, and transparent organisation, but it can also impact team performance.

Sharing data and other information can lead to stronger growth. Equitable access also can foster an organisation’s ability to test ideas and develop new products, services, and solutions. Further, transparency breeds trust, which increases productivity. According to Deloitte research, 79% of employees who trust their employers are motivated to work, while only 29% of those who do not trust their employers are motivated to work. In the coming year, leaders can challenge themselves and their teams to look at how information is shared – including who has access to it and how it is distributed and used for decision-making.

Pandemic-related challenges and uncertainty will likely continue in 2021 and beyond. But this uncertainty doesn’t mean organisations can’t be proactive and challenge themselves to root out ingrained mindsets that limit their ability to recover and thrive. The most effective organisations will continue to put existing beliefs and practices to the test, include more people in the discussion, and develop new and innovative approaches to thrive in the long run.