As we head into the new year, companies are focussing on becoming stronger and more resilient than ever before. Specifically, with the impacts of COVID-19 thwarting many existing business plans in 2020, rolling out new projects and initiatives to ensure business models and workforces stay relevant will be key. To overcome the immediate and longer-term challenges, here are some of the top business priorities that will be driving company strategies in 2021.  

Adapting to a digital future

The recent pandemic has highlighted the importance of keeping up with technology – many companies are working out how they will continue to enhance their digital capabilities for recovery and survival in 2021 and beyond. Research by McKinsey & Company found that nine in ten (90%) business executives believe the COVID-19 crisis will fundamentally change the way they do business over the next five years.

As organisations look for ways to improve their digital capabilities for the ‘next chapter’, embracing new technology such as cloud platform transformation will be key for driving more efficient internal operations and offering highly competitive products and services. With accelerating digitisation, companies are also prioritising cyber-security to protect their business and customer data.   

Embracing flexible staffing models and working practices

New projects are underway, but uncertainty prevails across the global business environment which means companies are embracing more dynamic ways to onboard new skills. Flexible staffing models – an adjustable mix of temporary and permanent professionals – is expected to help companies quickly fill skills gaps while offering the option to make staff permanent in future. 

Employees have also re-shaped their lifestyles to suit working-from-home arrangements while employers have invested heavily in improving their technology infrastructure to make remote work as efficient as possible. With flexible working an in-demand benefit, companies will continue to adapt to employees’ changing expectations by exploring new ways of working, so they can access a larger talent pool and attract the best candidates.

Forecasting and strategy planning

There’s no precedent to help companies model future scenarios or benchmark their responses and performance emerging from the pandemic. Companies next year will be continually gathering and analysing snapshot data to drive continuous planning efforts and prepare strategies around a range of outcomes, from another wave of COVID-19 to other uncertain events.   

During a difficult time, companies are also aiming to drive efficiencies such as reducing the costs of managing day-to-day functions and helping to identify lucrative new commercial initiatives to boost the bottom line. Boosting FP&A capabilities and rolling out new strategic project-based activities are likely to remain high on the agenda for the foreseeable future. 

Risk management

Organisations are exposed to elevated risks as global markets continue to experience pandemic-related turmoil. Constantly assessing environmental risk factors, their impacts on business and devising appropriate management and mitigation responses will be critical in 2021. Consequently, companies will be focussing on developing their business risk auditing and reporting capabilities by expanding risk and compliance teams – a critical function that can also help companies build, monitor and evolve defensive risk management frameworks and protocols in the context of a changing environment.