While 2019 has been a year of uncertainty for a variety of reasons, none is more prominent than the saga of BREXIT. It has been over two years since BREXIT was confirmed via a national referendum in the UK. This was done on the behest of David Cameron, then British Prime Minister, who was trying to silence nationalist voices in his own party and outside. It was a gamble at best and cost the jobs of two Prime Ministers – David Cameron and Theresa May.
Now that the deadline to leave the EU has slipped the perennial question is still being asked with renewed vigour i.e. what can corporations do in the face of BREXIT and the prolonged uncertainty? The answer may lie in leveraging a policy of agility. Consider.
Earlier op-eds in the series have defined policy as guidance that is directive or instructive i.e. it is clear in stating what is to be accomplished. It is also a conscientious choice to pursue a certain course of action out of a plethora of other options. Therefore, corporations will need to ditch any superfluous policies in favour of a policy of agility.
If the policy was to be summed up in one sentence for businesses trying to leverage it, it would be this profitable survival and consistent economic growth through flexibility, dynamism and realism in an ever internationalised and volatile market. Flexibility and dynamism by preparing for multiple BREXIT scenarios including ‘no deal’ and realism to understand that BREXIT may be a drawn-out affair as well which will require a revisit to previously mentioned BREXIT scenarios. There are four objectives of this policy. One, maintain a reasonable growth rate while paying respect to erstwhile competitors. Two, turn the organisation into a regional economic giant first and then into an international commercial power house. Three, establish strategy and plans that are geared towards adaptability. Four, create value rather than wealth.
Consider the example of Google. In modern times, no other company has captured the imagination of the people than Google! One would be surprised to know that although the company is working on over a hundred initiatives at any given time many of these are also routinely dropped and shelved. However, even with a high rate of ‘idea churn’, Google is still a colossus of the business world. The paramount reason is that Google executes the policy of agility in supreme fashion especially in the BREXT context. From the five-day method which teaches to bypass stifling bureaucracy & “analysis paralysis” to creating value in the mould of develop quick and fail fast the policy of agility is stamped far and wide on the Google logo! In doing so, it has actually been able to achieve the four policy objectives enumerated earlier. First, it has one of the highest growth rates across the world. Second, Google actually started to grow in the Americas first and later got known in the rest of the world. Third, there are no five to ten year strategies at Google. Fourth, and as described earlier, wealth creation is always sacrificed at the altar of value creation. Other corporations must follow suit if they wish to survive the uncertainty of BREXIT!
There are different strategies to execute this policy of agility. Some companies have decided to move their headquarters away from the UK, though still keeping the overarching policy of agility in mind. To minimise the uncertainty and disruption caused by BREXIT, Sony is moving its European HQ to the Netherlands and insurers, Lloyds of London, are planning to move to Brussels. Dyson is moving its HQ to Singapore but though has said that this is a strategic move unrelated to BREXIT. Panasonic, the Japanese electronics giant is taking its European HQ from the UK to Amsterdam mostly to mitigate tax issues linked to BREXIT.
There are other corporations whose strategy includes to keep the alignment within the UK. Google and Apple have announced plans to invest billions of pounds and create thousands of jobs in the UK. However, they are off-setting the BREXIT uncertainty through their global presence. Online fashion retailer ASOS’ plan to hire an extra 1,500 workers at its London base is continuing apace.
All these businesses have one thing in common using overarching policy of agility to execute strategies that are suited to individual entities. However, their policy objectives remain the same and as specified earlier.
Time is running out and corporations must take the first step of enshrining a policy of agility within their ethos to mitigate the consequences of BREXIT. As Martin Luther King Jr said, “you don’t have to see the whole staircase, just take the first step”!
