3 Things I Think Will Be Forever Changed in Business

The trend in companies allowing employees to work from home or move to virtual office environments was on the rise in many industries prior to the emergence of COVID-19. When the global economy came to a halt and companies around the world were forced to dramatically alter operations, digital communication platforms and remote workforce management tools became a necessity - right now.

Industries like technology, financial services and some aspects of education and training were ahead of the curve in using digital platforms. The shift of retail from brick and mortar shopping to e-commerce buying was already well under way. The costs of travel and the ability to conduct meetings via video were already being scrutinized and evaluated, if lightly used. No, the emergence of the pandemic did not start the shift toward digital business - but it did throw lighter-fluid directly onto the fire.

Here are three things (and there are likely many others), that I think will face dramatic change in a post COVID-19 world:

1. Business travel will not return to previous levels - not even close.

Before 9/11/2001, traveling by plane had become nearly as easy as getting on a bus or riding public transportation. I have vivid memories of rolling up in a taxi, running through LAX with my roller-bag with only 15 minutes to get to the gate before departure time. Security was more concerned with helping me make my flight than what shoes I was wearing. Post-9/11 we all arrive much earlier at the airport, allow time for long security-lines, and everyone is taking off their shoes. Nearly 20-years later, the danger of traveling with recirculated air and exposure to people in the airport and on the plane are reasons for concern. The cost of flights has gone up as the number of passengers has gone down. When we add the reality that video-conferencing and virtual presentations can often achieve similar goals to a business trip, the need to travel and incur those expenses and time becomes much harder to justify. The decreased need, the increased risk and costs, as well as the available alternatives will make business travel an indulgence rather than a requirement to do business.

2. Office-buildings & Office-space are optional.

During the tech-boom of the late 90’s and early 00’s, huge office buildings were built all over the country to house the teams of workers gathering to write code, build internet sites and develop software. Companies leased thousands of square feet of office space, often in multiple cities, to house their employees while they do their daily work for the company. Access to high-speed internet lines at the office compared to dial-up modem speeds from home encouraged workers to make the daily commute and spend their hours in an office. However, when the guidance to the public today is to limit indoor gatherings and practice social distancing, the idea of bringing tens of people or hundreds of people together in an office is likely ill-advised and reckless.

What has happened, and what is happening right now is that companies and people are figuring out how to conduct their business and do their jobs in new ways - without going to an office. As companies get comfortable with these new methods, the value of the office space and the cost of maintaining that space comes into question. Can companies be equally (or more) effective if their workers are not commuting to the office and gathering under one roof? Can employees be trusted to do their best work and provide value to the company if they are at home? Is technology good enough to enable us to collaborate and engage without being face-to-face?

The answer to all of these questions is yes. We have been learning these truths in small measures over the past several years and are now in true acceleration mode of companies operating with distributed workforces. As this happens, companies begin to reduce their physical space if not remove it all together. The emergence of companies like WeWork, Regus and Intelligent Space, who all specialize in operating shared or temporary office space only underscores this point. There may be times when companies need a physical meeting space or want to retain a smaller team of in-office employees - and that can be done without a long-term lease and dedicated office space. Companies can contract with one of these shared-office companies and reduce their costs and build in much more flexible terms. (Owners of these large office buildings need to be thinking about what happens if only 50% of the workforce comes back to the office.) The monthly office-space rent line-item in the budget is typically one of the big ones - that may not make smart business sense in the future.

3. Advances in Technology will continue to change the ways we work - Learning how to use new technologies will be a requirement for anyone in the workforce.

My dad was a salesman. Each week he would typically go into the office on Monday to do his work; then spend Tues-Thurs on the road making sales calls to people in their offices; returning Friday to finish the week in his office. When he became the President of the company, he was in the office every day by 7:30am and there until at least 5:30. Everyone who worked for him came into the office on a similar schedule to do their work and operate as a team. The trade-off was that when he came home at 5:30 - he was done working. No emails (no Internet), no calls - done until the morning.

Advances in technology have enabled different, but often equally effective methods to do business. Standard office-hours usually aren’t going to do it. Sales calls can be conducted through video-conferencing rather than overnight trips. Training can be conducted through self-service programs, videos and assessments without gathering in-person or depending on others’ schedules. Human Resources tasks can be automated with onboarding tools and performance review systems to build useful employee records. E-Commerce has changed retail forever, turning once vibrant points of sale into virtual showrooms where orders are taken and products are delivered to the home rather than carried in a shopping bag from the store.

The examples of technology leading to new processes, systems and cultural shifts to get work done are numerous and present around us. It is our natural instinct to push things forward and improve upon ideas. Now, coupled with the necessity of developing safe, largely digital ways of interacting with each other, new advances in technology are likely to continue to change the way we work for the foreseeable future. Those who can use these technologies and apply them will be well positioned to take advantage.

‘

The post-COVID world will look very different than it did only a year ago. Some of the changes may be temporary and others will be forever altered to deal with our changing reality. Face-masks, social-distancing and limited gatherings are likely a part of our foreseeable future - business activities and efforts will have to adapt. Companies who are willing to make those changes and embrace new systems and processes will be far better positioned for success than those who do not. The business-future will look different - The time is now to determine how your business can adjust and take advantage of this changing landscape.