Dear Commons Community,
In its latest report, McKinsey & Co. finds that executives are more hopeful about the economy than they have been at any time so far during the COVID-19 crisis. Here is an excerpt.
“Six months after WHO declared COVID-19 a global pandemic, the responses to the latest McKinsey Global Survey suggest a positive shift in economic sentiment. More than half of all executives surveyed say economic conditions in their own countries will be better six months from now, while 30 percent say they will worsen (see above figure). That’s the smallest percentage of pessimists we’ve seen since the survey in April 2020.
Taking a cue from those executives, our researchers delved deep into the US situation, emerging with an understanding of what it will take to deliver an optimistic outcome. The case depends on the progress made to date—and the potential for more. We’ve learned much about the natural history and epidemiology of COVID-19. We’re developing better diagnostics, including rapid point-of-care tests, a few of which can be completed in about 15 minutes. Case management has improved. And pharmaceutical companies have turned out a remarkably robust pipeline of vaccine and therapeutic candidates. Put it all together, and an end to the pandemic is potentially within range.
Another new survey reveals the extent of the COVID-19 crisis’s disruption in working practices and behaviors. One-third of surveyed companies have accelerated the digitization of their supply chains, half have sped up the digitization of their customer channels, and two-thirds have moved faster to adopt artificial intelligence and automation. Many other workforce changes are also in progress.
Managers need to process these changes and many others, and come to grips with the long-term strategic-planning agenda. The essential question: what is the right way to think about 2021 and beyond? Should companies unbatten the hatches, or is it too soon?”
There is hope at the end of the coronavirus tunnel!