New Zealand went into lockdown not knowing what to expect. Photo / Brett Phibbs
New Zealand went into lockdown not knowing what to expect. Photo / Brett Phibbs
OPINION:
This year is one many of us may choose to forget but for business there are some important lessons to remember.
As Covid-19 spread around the world in early autumn, people were forced to adapt to working from home.
For some, their life improved immeasurably. The daily commute wasgone. Health, happiness and overall quality of life improved. Many were happy and better off to continue working from home.
For others, they couldn't wait to get back to the office or official workplace.
Lockdown with a young family was no walk in the park. The novel practicality of Zoom quickly wore thin.
The jury is still out on productivity but in certain circumstances, the power may have shifted further toward the organisation and away from individual workers - with managers hard to get hold of, fewer one-on-one meetings and a diminishing team ethic.
What lockdown did prove is that we are a resilient bunch and most businesses were able to adapt under ridiculous circumstances. Some organisations have or will adopt a more flexible working approach as a result, with office space for those who need it while letting others carry on at home.
On the downside, what Covid highlighted starkly is this country's concerning labour shortage. Who would have thought, for example, that our fishing industry had to rely on imported Russian workers?
The same goes for teachers, fruit pickers, construction workers, sheep shearers even … the list goes on.
The Government must find ways to encourage locals into seasonal work, while also investing in training initiatives to build up industry skills for other core services.
Taking stock of Covid-19 coronavirus
On the upside, Covid also showed how resilient and constructive capital markets are.
The crisis has been so severe and unprecedented that the response by governments and central banks also had to be unprecedented in size and scale. But companies themselves and their lenders and investors stepped up, raising capital early and cleanly.
The fact Auckland International Airport was able to go to investors and raise $1.2 billion when its business model had been torn apart almost overnight was testament to how well-functioning the capital markets are.
A number of other high-profile companies were able to shore up their balance sheets with strong support from investors. This was in contrast to the Global Financial Crisis a decade ago when some local companies were caught napping and perhaps acted too late.
Covid also taught us that most predictions are pointless. How does someone even begin to reconcile the steepest GDP contraction since records began in New Zealand with the way the financial markets have behaved this year?
Meanwhile, businesses were prompted to predict future revenue loss in order to collect the Covid-19 wage subsidy. Some took advantage of it, but most were thankful for the lifeline for their staff.
When lockdown restrictions came off, businesses were then asked to predict their future revenue gains, do the right thing and pay it back.
Looking back at the year suggests New Zealand got most things right. But there are still plenty of things we could do better.
Taking stock of the lessons learned from the Covid-19 crisis is important not only for recovery but also to prepare for the next major global crisis.
