What is the New Normal?
The New Normal was coined in 2008 after the economy was shattered. The aftermath was referred to as the New Normal in a Bloomberg News article written by journalists Rich Miller and Matthew Benjamin. The article was titled: “Post-Subprime Economy Means Subpar Growth as New Normal in U.S.” From there it became the official term to describe changed norms in the post-crisis reality.
The term has made a come-back now in 2020, to describe again, a reality that is in many ways completely changed. Post-COVID has been coined the “Next Normal” by McKinsey to differentiate it from the last post-crisis reality.
How can businesses now learn from the New Normal?
The last time the economy was hit hard in the Western world was 2008. Although the world is in a different place now, there are some similar best practices for business continuity that can be taken into account.
McKinsey suggests that in order for companies to come back stronger in the Next Normal, they will have to reimagine their business models by focusing on four strategic areas:
- Recovering revenue
- Rebuilding operations
- Rethinking the organization
- Accelerating the adoption of digital solutions
The New Normal vs. The Next Normal
While the New Normal of 2008 was largely referring to a lower level of revenue and productivity for business, the Next Normal is a much more optimistic and opportunistic concept. In the Next Normal, businesses are empowered through digital means, they are more agile, adept, and adaptable, and they will provide better employee experiences for their organizations.