Opportunities in crisis
As the year ends and Philippine Daily Inquirer celebrates its 38th anniversary, Inquirer Motoring and Inquirer Mobility reflect on the recent past on how the Covid-19 pandemic has been such a transformative event for all of us. Reshaping the dynamics of our economy, industries, and how we conduct our businesses. We asked various automotive industry leaders on how their organizations have faced unprecedented challenges, forcing them to adapt, innovate, and rethink their leadership strategies. Here are some key takeaways on how their leadership have skillfully steered their businesses through the pandemic years and how they will navigate as the economy has opened up.
Is it business as usual? In any crisis, there is an underlying opportunity and we’ll soon learn how their insights will shape the future of their businesses.
On adaptability and agility
This is one of the most crucial lessons that leaders have learned to cope. The pandemic brought unexpected disruptions to supply chains, workforce dynamics, and market demands. Those who were able to pivot quickly and make strategic decisions in response to rapidly changing circumstances emerged more resilient. The ability to adapt to new technologies, remote work setups, and altered consumer behavior became imperative for survival and growth.
Mitsubishi Motor Philippines Corporation (MMPC) president and CEO Takeshi Hara says, “The pandemic made us realize that we need to be agile and adapt quickly to survive. Leaders must be able to quickly assess new situations, make informed decisions, and implement changes effectively. And I think we should also foster a culture of innovation. Since the pandemic, we have come up with lots of different programs and solutions to challenges we’ve encountered, most of them came from employees which I appreciate.”
According to Michael Breen, president and managing director of Ford Philippines, “The pandemic highlighted where the organization/team was strong in these areas as well as where there was opportunity for improvement. Individuals within the team rose to the occasion to really demonstrate what it would take to deliver goals for the business while prioritizing their safety and overall well-being. Equipping our teams with up-to-date technology and tools to communicate with each other no matter where they are was crucial in ensuring their productivity and engagement. Even before the pandemic, Ford has implemented a telecommuting policy, allowing them to work from anywhere and empower them to deliver their tasks even outside the office.”
“The pandemic highlighted the significance of agility and adaptability for businesses when faced with uncertainties. In a constantly evolving environment, capitalizing on your expertise and resources to adapt to change is important to ensure the survival and growth of your business. By being agile and adaptive in both mindset and ways of working, Inchcape is able to navigate challenges and identify new opportunities that will benefit our business, partners, and community we work with,” says Alex Hammett, managing director for South Asia and Pacific for the Inchcape Group. Inchcape recently entered into a joint venture with local player CATS Group to handle retail and distribution for Mercedes-Benz, Jaguar and Land Rover and more recently Changan Motors in the country.
On acceleration in digital transformation
Digital transformation is not just a buzzword anymore but it is a necessity for survival. Therefore, companies that have a robust digital infrastructure fared better during lockdowns.
Inchcape Group’s Hammett intimated that Inchcape is a leading force in transforming in the automotive industry, enabled by data and digital innovations. This is embedded in the Inchcape Accelerate strategy. They foresee the criticality of this in business and thus invested in digital capabilities, particularly in its Inchcape Digital team. Inchcape has about 1,200 people in its “Inchcape Digital” offices, with one office based in the Philippines employing about 700 people, to partner and transform our businesses across the global organization.
“Our partners, customers and community that we work with is at the core of our business. Embracing digital advancements in our operations and advancing mobility solutions is a cornerstone of us being efficient and being able to deliver exemplary experiences. An example is Inchcape’s transformation of the customer experience through omnichannel delivery. What this means is our customers can enjoy the end-to-end car purchase and ownership journey in a “Phygital” way, from browsing, car configuration, test drive, assessing car loan and insurance, to the actual purchase and arrangement of aftersales services. Such transformations are a combination of our desire to deliver superior customer experiences, our insights of the market and our customers’ preferences, close collaborations and trial with partners, and digital innovations,” Hammett added.
At Ford Philippines, according to Breen, “We are now adopting a digital-first strategy in the way we connect with our stakeholders – including our own employees, dealers, and customers. The pandemic taught us to fully embrace this approach to create and sustain engagement and productivity for our employees and dealers, and awareness, consideration and trust for our customers. We are constantly looking for ways to adopt a digital-first mindset in our tools, systems, processes and platforms for our stakeholders.”
When it comes to digital transformation, MMPC’s Takeshi Hara intimated that “This is probably the biggest challenge in most companies. Because of the pandemic, we were able to accelerate the digitalization of our processes within the company and dealers. So far, we are maximizing digital technologies to enhance employee productivity and customer experience.”
When crisis becomes an opportunity
“It was really the timing. It was on December, 2019 when we launched the Autohub App thinking that we would be able to take our time and progress in the coming years.. It was originally a five-year digitalization plan of Autohub. I never thought we would be able to maximize its purpose and potential three months after. This App enabled us to move and operate during the lockdown period. Service Appointments made easy and definitely safe. We had to adapt every digital way possible. Website, social media, every online platform we utilized. It was really our plan, we just didn’t expect that it’s sooner than we all think. We were all forced to go digital. No exemption. We even launched 3 dealerships during the pandemic via zoom,” said Teeten, president of the Autohub Group which handles several luxury auto brands including Rolls-Royce, Lotus Cars, Mini, as well as motorcycle brands Vespa and Triumph.
Future proofing and risk management
“The pandemic proved how everything can change quickly. It highlighted the need for businesses to be prepared and be armed with pre-emptive strategies that mitigate potential challenges. Having a comprehensive risk management framework, devising future-proofing measures and keeping this topic on the agenda is a step towards safeguarding businesses against unpredictable challenges. The strength and resilience of business also lies with the network. At Inchcape, we continually strengthen our relationships with and bring value to our partners, suppliers, dealers and customers, allowing all of us to leverage each other going into the future and in the face of challenges. Internally, we strive to create an environment where all colleagues can thrive, have purposeful work and have access to development opportunities – engaging our colleagues to be at their best potential and being an employer of choice to attract the best and right talents to join us,” Hammett.
“Now, there’s no way we’re going back to where we were in 2019. We’ve adapted digitally and there is nowhere to go but accepting the fact that there’s no more “offline”. Online is everything. Manual to digital, storage to cloud, an organization to AI, sales people to chatbots, showrooms to virtual showrooms.. ICE (Internal Combustion Engine) to just E (Electric Vehicle). Everything has changed. It’s just a matter of how fast you can shift. We’re on it all the way,” Teeten.
For Mitsubishi, Hara said that “As practiced, we regularly conduct risk assessments to identify, assess and prioritize potential risks to our business operations. And all companies should also consistently develop contingency plans to create a detailed plan to respond to potential disruptions in the business such as what happened in 2020 – the eruption of Taal Volcano, then the emergence of COVID. “
Lessons we learned
UAAGI Group, one of the pioneers in bringing in Chinese vehicle brands Foton, Chery and Mutt Motorcycles, have faced many challenges in the past and the recent pandemic has taught them many lessons. “Like many other industries, the automotive industry faced unprecedented challenges during the COVID-19 pandemic. One of the greatest lessons that the pandemic imparted is the importance of adaptability and resilience. Moreover, another key takeaway is the importance of placing the health and wellbeing of our employees a priority. As leaders, the crisis prompted us to act with urgency, honesty and empathy. I’ve learned to quickly pivot and adjust operations from profit oriented to survival mode,” said Rommel Sytin, UAAGI chairman.
“No one prepared for this crisis. The extraordinary disruptions we experienced forced us to navigate through unforeseen challenges and transformations in customer behavior, supply chain and the manner of how we conduct our business. With the restrictions imposed by the government, pushed businesses such as automotive retail to be innovative and creative and to capitalize on the digital scene to still serve its customers. Virtual showrooms became a thing in the auto industry. Even when our showrooms are closed and only limited movement were allowed, our customers were still able to check out the vehicles through the virtual showroom. Facilities for online inquiries and online sales were even developed to still cater to customer’s needs. New model launches where also made possible by conducting virtual launches that allowed guests and even the public to attend the launch at the comfort of their homes. To be able to thrive and not only survive during this unpredictable time, it was essential for leaders to help maintain its important resource, the health and wellness of the employees. This prompted leaders to develop more trust to the associates by allowing them to work remotely as long as the productivity is at par with working onsite. It was also important to be involved and bring more value to the community by thinking of ways on how as a company provide assistance and support to our fellow Filipinos.
In essence, high impact disruptions such as the pandemic have made us reassess our processes towards readiness and improving overall efficiency as part of our risk management program.”
In summary
The pandemic became a testing ground for CEOs, enabling them to reevaluate their leadership strategies and existing business models and best practices. These lessons have highlighted the importance of adaptability, employee well-being, digital transformation, supply chain resilience, enhanced risk management, and the acceptance of remote work. As businesses navigate the post-pandemic era, these lessons will continue to shape the future of leadership and corporate strategy, fostering a more resilient and agile business environment. These are the same challenges the Philippine Daily Inquirer as a news organization have come into terms with and have made its own digital adoption, new normal work arrangements both back end and in news reporting as well as other best practices that have accelerated from what was before a predominantly print news organization and propelled it into a multi-media news platform.
