Returning To Work In Society’s New ‘Normal’

How companies should plan to return to work and emerge from COVID-19 stronger and smarter.

As the response to the COVID-19 pandemic progresses, many companies have established operational crisis management teams and adjusted to global restrictions on work and movement. Executives are now beginning to ask the question: How are we going to return to work?

As of April 2020, some countries are starting to ease restrictions, allowing for more freedom of movement and the reopening of specific industries. In the United States, The White House has announced guidelines for re-opening the nation in a three phased approach. These guidelines include thresholds for states to satisfy in the following areas: trajectory of reported symptoms; trajectory of reported cases; and ability for hospitals to care for patients and provide ongoing testing.

Additionally, multiple groups of governors have formed regional coalitions to coordinate reopening their states in a unified way. While it is challenging to predict when each country and U.S. state will begin to return to the workplace, many predictions point toward restrictions being lifted gradually over the next few months, depending on your location.

Regardless of precisely how governments decide to ease their restrictions, companies need to plan for an orderly and thoughtful approach to returning to work. There are three crucial steps to accomplishing this:

  1. Build a return-to-work plan.
  2. Work through the stages of partial and full operations.
  3. Increase resilience through monitoring for possible virus resurgence, completion of after-action reports, and program enhancements.

By doing this carefully and methodically, businesses can begin the process of restoring operations while also ensuring that they do not take one step forward and two steps backward in returning to work.


Build a return-to-work plan

Companies first need to consider the structure in which a return-to-work plan will be created. That structure will need to include identifying stakeholders; outlining authorities and decision trees; defining critical information requirements; identifying assumptions and variables; and, of course, creating detailed execution checklists for individual business units.

It’s essential to examine each part of the return-to-work program in detail:

  • Identifying stakeholders: Most of the critical stakeholders may already be members of the Crisis Management Team. Members should include representatives from major business units and support functions.  
  • Outlining authorities and decision trees: As your company prepares to make return-to-work decisions, it is important that a decision tree is outlined in advance and that the company agrees on who has the authorities to make those decisions. At a minimum, a company will need to answer three basic questions before returning to work. Those questions are:​
    • Can we do it? Is physical access possible through government easing of restrictions or landlord policies?
    • Should we do it? Is it safe for staff to commute to and occupy a given work site? Additionally, are there supplemental government restrictions like the required use of personal protective equipment (PPE) that the company must provide for occupants?
    • How will we do it? Who within the company makes the final decision to open a work site, and what are the steps (checklist items) the business units will need to follow? 
  • Defining indicators: Sometimes referred to as triggers or critical information requirements, these indicators will likely come in the form of the lifting of government orders or easement of agency (e.g., Centers for Disease Control and Prevention, World Health Organization) guidance. This type of information will indicate a country, state, city, or region is ready to begin the process for considering reopening non-essential work sites.
  • Identifying variables: Any lifting of work and movement restrictions will likely occur in a phased approach. Governments and agencies will closely monitor infection cases and use that information to determine next steps to further ease restrictions or revert to prior levels. Some of the variables companies will need to consider are:
    • Countries will only begin to ease work and movement restrictions when they see consistent reductions in new infections and are comfortable that they have available medical capabilities and hospital beds to handle any potential resurgence.
    • In the U.S., individual states will start to return to work in segments (coastal states first with interior states to follow). Additionally, state governors are likely to extend restrictions beyond federal government deadlines due to the differences in when peak infection cases are reached.
    • Restrictions are likely to remain in the workplace, and it is possible to see government orders that could require a reduction of in-person workforce by half, staggered work schedules, or some other measures to keep occupancy low while the effects of returning to work are measured in any potential new infection cases.
    • Guidance or government orders may include parameters around which segments of the population can work first (e.g., low-risk and immune persons may be allowed to return first, while higher-risk populations will be required to remain at home).
    • Some governments are requiring PPE for employees (e.g., China, France, and, in the U.S., New Jersey, New York, and some counties in California and Florida). In these cases, companies will need to prepare for and provide the required equipment before staff are allowed back into the work site. Lead times for this equipment can be very long, so advanced planning is required.
    • Manufacturing and pharmaceutical equipment may require re-calibration and, in some cases, re-certification by the Food and Drug Administration (or local equivalent). Lead times for these processes could extend many weeks or months.
    • Finally, companies will need to determine what other government regulations are required of them prior to opening a work site. For example, in Alameda County, California, there is currently a regulation requiring employers to post notifications to the buildings informing staff of the potential dangers that may still exist.
  • Creating detailed execution checklists: For individual business units, both business unit and support function checklists will need to be created to help ensure proper steps are completed prior to staff returning to a work site. Additionally, critical third parties must be accounted for when preparing to return to work.

Working through the four stages

A return-to-work plan should account for four main stages and allow for a clear roadmap in moving from a (1) current state, to a (2) partial or limited opening, to a (3) full resumption of operations at capacity. The fourth stage accounts for the need to continue to monitor for virus resurgence. This allows for a diagnosis of how the company performed during the crisis and how it will improve going forward.

The situation, objectives, indicators, and actions should be clearly defined for each of the four stages that a company expects to move through during the return-to-work process. Those elements are detailed as follows:

  • Situation – Parameters are established to help define the given stage. This is especially helpful in determining when a company can begin to move from the partial opening to the full opening stage.

According to World Health Organization director-general Tedros Adhanom Ghebreyesus: “The last thing any country needs is to open schools and businesses only to be forced to close them again because of a resurgence.”
Source: https://www.reuters.com/article/us-health-coronavirus-wuhan-secondwave/beware-second-waves-of-covid-19-if-lockdowns-eased-early-study-idUSKBN21D1M9

  • Objectives – A company articulates what is most important in each stage. It could be maintaining cash flow, re-establishing connections with clients and customers, re-evaluating supply chains, or completing a look back at the event with an eye toward future maturity.
  • Indicators – This information is gathered from both government orders and agency guidance. It informs the company what is or is not allowed from a movement, work, or health and safety perspective.
  • Actions – Finally, companies should outline how they will act within each stage. This may take the form of specific actions related to People, Process, and Technology.

The final stage of the return-to-work plan is to monitor and prepare. Here it is incumbent on companies to continue to monitor for any resurgence in the virus, identify changes to government restrictions and agency guidance, and better prepare the company to be more resilient toward future disruptions. This is also the stage where companies should do a “look back” to evaluate if any controls were relaxed during the work-from-home period.

There is growing concern among academics that a second wave of virus infection cases may occur later this year. Given that possibility, companies should take full advantage of the expected break over the summer and early fall months to begin to perform after-action reports and outline a plan for improvements. Those in highly regulated industries (e.g., Financial Services, Pharmaceutical) should further prepare for regulatory inquiries on how they are planning to address gaps. Regardless of industry, it is always better to show the Board and regulators (if any) that gaps have been self-identified, remediation programs outlined, and resources allocated.

This will also be the time for companies to build a consolidated operational resiliency function. In this environment, resiliency components are no longer siloed but are integrated and provide end-to-end recoverability regardless of the next business interruption.

Conclusion

As companies continue to navigate these uncharted waters, it is essential to understand that business may fundamentally change when we come out of this. A return to “business as usual” may also be a return to a new normal where we re-evaluate how we work, where we work, how we interact with customers, and where our products are made. Supply chains and concentration risks will be reassessed, and executives will begin to evaluate outsourcing and the use of low-cost locations with more of a risk lens and not merely a cost-cutting lens.

Like every systemic shock to the economy, winners and losers will emerge. One need only look to the long list of defunct internet companies from the late 1990s or the more recent list of white-heeled boutique banks that didn’t make it out of the 2008 financial crisis. In most cases, the firms that emerged had strong risk management programs and decisive leaders who executed on clearly defined recovery plans.

That is why now is the time for companies to begin working on the following three return-to-work steps:

  • Build a return-to-work plan.
  • Work through the stages of partial and full operations.
  • Increase resilience through monitoring for possible virus resurgence, completion of after-action reports, and program enhancements. 

Digital Transformation: Building The Future of Construction

By Ian Shapiro, Adam Rouse and Malcolm Cohron

The construction industry is due for a digital renovation. Faced with challenges around project efficiencies, ongoing safety concerns and flat-lining labor productivity levels, the industry’s sluggish adoption of new technologies has reached an inflection point. Digital transformation requires changing processes and using new resources that harness the power of data to improve communication, efficiency, productivity and safety. This can position construction firms for profitable growth in a highly competitive industry, while also addressing workforce challenges.

The construction industry has a workforce that skews older, and as more baby boomers head toward retirement, the industry faces a labor shortage that’s poised to get worse.  According to the U.S. Bureau of Labor Statistics, there were about 300,000 construction job vacancies in June 2019, and the industry is expected to need 747,000 more workers by 2026. While the demand for skilled craftspeople has continually increased, fewer young people are entering the industry.

Potential recruits just don’t see construction as an attractive and viable career option, especially when other sectors are considered more tech-savvy and offer perks that appeal to millennial workers. To navigate these conditions and sharpen their competitive edge, construction companies need to adopt a bifurcated strategy: invest in new technologies to streamline operations and lower costs from blueprint to final product, and invest in the workforce through retraining initiatives and by bolstering the talent pipeline.


Addressing Old Challenges with New Technology

Graphic of digital business, digital process and digital backbone

Transforming construction means more than introducing modern technologies to the industry: Technology correctly incorporated has the effect of rippling through and improving interrelated processes. This requires assessing the current state of a business, strategizing for the future state and then mapping a journey to that future.
 
Digital transformation goes far beyond digitizing analog functions; it enables a fundamental shift in how a business operates so that it can compete in a digital world. Three key areas of transformation are ultimately enabled by end-user adoption: Digital Business enables growth, Digital Process improves efficiency and profitability and Digital Backbone securely facilitates usability for business needs.

Identifying and adopting valuable digital tools, data-enabled hardware and field software can provide a solid foundation for sustained growth. For example, using drones or unmanned aerial vehicles (UAVs) for aerial photography can help expedite a land survey and assist planning through digital imaging techniques, precise topographic mapping software and data analytics that inform building strategy. Continued UAV surveillance can also help secure the site and inspect for safety hazards or structural issues. When applied in conjunction with 3-D printing, automated equipment tracking and progress reporting, these innovative building techniques reduce the time, effort and cost involved in more traditional construction approaches.

In an industry that has been challenged by disruptions to the price of materials—including tariffs of 25% on steel and 10% on aluminum imposed in 2018—increasing efficiencies and reducing controllable costs are more important than ever. Innovative software can identify and quantify work tasks, reducing or eliminating extraneous work to help maximize time and minimize effort. Supply chain information can even be tracked in the cloud, increasing transparency and accuracy by collecting that data within a single platform. Digital tools not only support the project budgets and timelines, but also promote worker safety and sentiment.


Navigating Workforce Woes

Workforce challenges in construction abound. The industry has been contending with a lack of organized site management, miscommunications between the field and regional office and a downward trend in employee morale.

The flow of information from job site to regional office to corporate can be fragmented, delayed and incomplete. The amount of time it can take to input information into the system leads to lack of real-time visibility into a project’s progress, which can ultimately have an impact on cashflow. Integrating data can streamline communication and deliver more accurate information more quickly. Work in Progress (WIP) tools track work in real-time, making sense of data that can then be used to inform subsequent project plans. They also allow for more accurately designed scheduling with the appropriate amount of margin and risk tolerance built into project plans. Similarly, Building Information Modeling (BIM) can synthesize all essential aspects of a project’s input into a single plan with 3-D modeling, wherein contributors can stay in timely communication.

Digital transformation can also help attract younger workers to the industry by creating more jobs that require tech skills. U.S. News & World Report noted in 2018 that less than 10% of construction workers are younger than 25, while the median age is above 42 years old. Modernizing processes through increased adoption of technology can both create new jobs and future-proof the industry.

Technology also enables construction managers to standardize approaches across a project (or multiple projects), facilitating additional clarity in delegating responsibility and even safety. The IDC predicts 279 million wearables will be in use by the end of 2023, a technology that can be applied to increase site safety and monitor for productivity. For instance, sensors attached to workers’ clothing or hard hats can track signs of fatigue to prevent an accident, monitor body temperature to avoid hypothermia or heat exhaustion, send an alert through noise or vibration to indicate a hazard and provide supervisors with real-time information about the number and location of employees on site. 

For companies who can augment their capabilities now, successful digital adoption may reinforce their competitive capabilities and lay the foundation for a successful future. From project management tools that offer real-time communication, updates and project overviews, to cloud and mobile technology, advanced uses for GPS, robotics, drones and more, innovative applications of technology can fundamentally change the project design and development process. Digital transformation can be the means for the industry to navigate workforce issues, discover new efficiencies and build an integrated platform to reinvigorate growth for generations to come.



This article originally appeared in BDO, USA, LLP's "BDO Knows Alert" newsletter (December 2019). Copyright © 2019 BDO USA, LLP. All rights reserved. www.bdo.com