According to the International Monetary Fund, in a baseline scenario--which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound—the global economy is projected to grow by 5.8 percent in 2021 as economic activity normalizes, helped by policy support.
Effective policies are essential to forestall the possibility of worse outcomes, and the necessary measures to reduce the spread of COVID-19 and protect lives are important investments in long-term economic health. Policymakers will need to implement substantial fiscal, monetary, and financial market measures to support businesses domestically.
The economic fallout could have an impact on professional service organizations because there may be fewer clients, fewer engagements with repeat clients, and an overall reduction in spending in the short-term.
However, a slowed economy does not mean you will not have client work. Think about the initiatives that will take place in the areas of cost-cutting, restructuring process, strategy development, talent management, financial re-engineering, and other aspects of ongoing business management. It is more likely that some spending will slow down while the demand for external service expertise and support will increase.
While no one can predict the precise effects on each business, Collective 54 members are reporting that clients are raising their expectations including: requesting a higher level of service, support in new areas of the business, quick response to immediate concerns, as well as lower fees, delay in fees, and renegotiation of long-term contracts. In this environment, we encourage members to focus on the vital few initiatives you can implement to improve your firm and your client's organizations. Focus on how you can help your clients solve unexpected challenges during this unprecedented time, and how you can provide significant value for their brands, their clients and their businesses,
C54 has many resources specifically designed to support your firm and identify and implement the initiatives you can take to exceed the expected higher performance and cost standards of your clients. At the same time, you should be offering highly-valued support, leadership and guidance to your clients to position your services for economic recovery.