By Ken Lerona
It’s been several weeks since Iloilo was placed under community quarantine due to the threats of COVID-19, and thankfully, we’re getting the hang of it. Slowly, we see a bit more clearly what works and what doesn’t work during these difficult times. Our local government is becoming more efficient, communities and individuals are doing their share, and some businesses start to adjust.
We are not seeing the end of this challenge soon, but we are hopeful that we will emerge alive and kicking after this test.
These past weeks, Iloilo’s main focus was to provide for the needs of the vulnerable sector. We made sure to take care of our fellow Ilonggos’ financial and social needs to get by the crisis. We did the right thing and with our continued unity, we will win over the challenges as one solid Ilonggo community.
It is definitely laudable that our business sector was among the first to offer help to our government and the community. This indeed is the Ilonggo spirit of dagyaw at work!
While it is necessary that we cover the medical and social aspects of the crisis first, it is also important to note that we must never forget about our economy. One of the major threats that this global problem brings is the big blow to our businesses. Analysts around the globe have already waved the recession flag and we in Iloilo should not ignore this.
We may have been shielded from the negative impacts of the past financial crises so we do not have direct experience on how it crippled economies and industries so it is easy to brush the idea off. Layo sa atay. It will not happen to us, we may say, but we had the same attitude just before the pandemic hit our own shores. We cannot make the same mistake of not preparing.
Uncertain new world
If we do not start to take notice of the possible impact to our local businesses, we are putting at stake, not just the future of our business owners. We are also risking the future of their employees, suppliers, contractors, and even customers. The closure of businesses these past weeks is already making a dent in our pockets. How much more will it rob us of our opportunity to earn and survive in the next few weeks or even months?
And here’s the reality: we will be facing a new reality once this lockdown is lifted. People may not spend as much on non-essential products and services, they will choose to stay and cook at home instead of dining out, and may even prefer to buy online instead of going out to stores and to the malls. Some of them will no longer buy certain products and some of them may demand products that businesses are not ready to produce and sell.
What about the supply chain? How and where will we source our raw materials? Will we have enough skilled manpower to help us produce new products being demanded by the market? Are they willing to travel far to work, or will they prefer to work from home? Do we have enough funds to help us easily navigate through the new market?
The future that we will continue to face is that of a VUCA world. A world that is volatile, uncertain, complex, and ambiguous.
Are we ready to face this new reality?
Preparation is key
One key lesson that we are learning as the COVID-19 crisis continues to unfold is this: preparation is key. While some of us may have been embarrassingly caught with pants down when this pandemic occurred, it is not yet too late to make necessary preparations as we gear towards recovery.
We’ve listed down below some of the things that we need to consider to guide us in the new path that we will need to tread.
Be technology-driven. As we see now, those who continue to operate and thrive are those that have shifted to digital early on. I had a conversation with a couple of Ilonggo businessmen earlier this year and we noticed that our local market may be tech-laggard due to availability of alternative (read: analog) resources but with the supply of these resources being cut-off, we will be forced to migrate to technology-driven platforms to address our pressing needs.
Just a few days ago, we have seen ads of online delivery platforms providing grocery service in partnership with a local supermarket brand. We are also familiar with a locally operating cloud kitchen (online restaurant that has no physical store) that will thrive and survive for sure in the new economy.
Of course, while we pivot to digital, we must never forget to fortify the brick-based infrastructure to support these online businesses. This may include delivery services and logistics.
Services will now be service not usual. Seriously, this is the best time for us to drop our insular attitude towards service. I’ve been calling this out in various occasions – we need to stop our suplado and suplada culture when it comes to customer service. Consumers will be more demanding in the new world. They will demand for more value for their money and this will include better customer service.
Some years ago, I chanced upon an irate customer in the check-out counter in a big grocery store. He was complaining about the cashier’s slow service maybe due to a problematic system. “Kayo kasing mga Ilonggo, hindi kayo nagrereklamo kaya hindi ninyo nakukuha ang serbisyong deserve ninyo,” he said. I guess with limited resources, customers will be more demanding and local businesses need to prepare for this.
Learn new skill-set. The new normal will require business owners to acquire new skill sets. Other than digital and technological skills, entrepreneurs will need to build knowledge to help them navigate the challenges in the new world. Being multi-skilled will be an advantage in the new normal.
These may include handling people remotely, hyper-personalized marketing, e-commerce (if you haven’t shifted yet!), and supply chain management and logistics, among others.
Their human resources and employees need to upskill too. Knowledge on customer insighting, customer experience, and customer service will definitely be handy.
Thrive in the collaboration economy. With limited resources and jittery market, the new world may require players, competitors, suppliers, contractors, and other providers to collaborate. Local businesses need to be open and ready to collaborate.
This may come in the form of collective material sourcing, shared infrastructure, and aggregated marketing and distribution. Cost savings, increased market reach, and overall business survival – if not growth – may be achieved in the new collaboration economy.
Don’t be afraid to go glocal. Think globally, act locally. Glocal is from the Japanese practice of dochakuka which referred to the adaptation of farming techniques to local conditions. We may have learned so many principles applied in Cebu, Manila, or even abroad that we can tailor-fit based on our local realities. No, local businesses are not required to fully embrace other region’s techniques – they only need to pick and apply what will be best in the local context.
This may also mean that businesses do not need to reject local wisdom in exchange of the modern global practices. They need to find that sweet spot where they can use both to their advantage during this time of crisis.
