Eden Strategy Institute presents ten of our reflections to guide organizations and businesses to fundamentally re-configure our post-pandemic economy.

1. The Hard Reset
Optionsforapost-pandemicworld

2. In late December 2019, the novel coronavirus disease (COVID-
19), caused by severe acute respiratory syndrome coronavirus 2
(SARS-CoV-2), broke out in Wuhan. On 11th March 2020, the
World Health Organization (WHO) declared COVID-19 a
pandemic.
In the span of several months, the pandemic has drastically
changed the lives of billions of people across the globe. As social
distancing and self-isolation become the norm, we have all have
been forced to take pause, reflect, and shift our focus towards
the things that bring greater meaning and joy in our lives.
This pandemic has revealed major faultlines in our traditional,
capitalist beliefs. As we struggle to secure basic needs and
protect our health, the consumption of frivolous goods and
services has taken a backseat, lives are prioritised over
economic growth, and yearning grows for a deeper human
connection that social media can never fulfil.
The inefficiencies and inequalities in our current system open
up a window of opportunities for individuals, businesses, and
governments to opt for a ‘hard reset’, so they can actively
assume leadership to make landmark changes that will create
a desired New Normal for our post-pandemic world.
Eden Strategy Institute presents ten of our reflections to
help guide organisations and businesses fundamentally re-
configure our post-pandemic economy in the medium-term,
and pave the way to fulfil the future needs of society more
sustainably.
Thecoronaviruspandemicchallengesbusinessaxioms
andpresentsanopportunitytoreshapeourworld

3. Everyhumanbeingcanbeequallyvulnerabletofracturesin
economics,health,andsociety
Sources: South China Morning Post (11 April 2020); TIME (25 March 2020); The Straits Times (28 April 2020); International Labour Organisation
Est. full-time jobs lost worldwide
in Q2 2020
195,000,000
People have been affected globally
by delays in regular immunisations
13,000,000
REFLECTION 01: WELL-BEING
87
percent of the world’s students
missing class due to school closures

4. …toprotecting all
members ofsociety.
From“everymanfor
himself”…
The vulnerable either get stronger on their
own or receives social welfare from the
government
In a world full of economic externalities,
thinking about the self immediately
equates to thinking about others
REFLECTION 01: WELL-BEING
??
CAN WE ASK OURSELVES:
Isourcompanyfullyandmeaningfullycontributingtothecommunitiesweserve?

5. Sources: Barua, S. (2020)
$733 mn
in Thailand
$312 mn
in Indonesia
$39 mn
in South Africa
$5.2 mn
in Japan
$5.8 mn
in United States
$15.6 mn
in the EU
REFLECTION 02: PRODUCTION
Outsourcingcanhollowoutacountry’sabilitytoproduce
essentialgoods
↓2%
DEPENDENCIES IN INTEGRATED GLOBAL SUPPLY CHAINS
reduction in Chinese exports
creates export losses of

6. …todiversificationof
supplies and reshoring.
Producers work in diversified supply nets,
and smart factories can rapidly retool
manufacturing lines to produce essential
goods locally; value is created from
innovation than from economies of scale
Fromspecialisationand
economies ofscale…
High dependence on specialists and
subcontractors with narrow skill sets,
extreme division of labour, and complex
supply chains
Whatcapabilitiesdoweneedtoensureanagileresponsetochangingmarketconditions?
REFLECTION 02: PRODUCTION
CAN WE ASK OURSELVES:
??

7. 9%Italy
Resourcesneedtobeactivelyreallocatedtopublicgoods,as
marketforcesdonotadequatelymeetsocietalneeds
Sources: Channel News Asia (28 March 2020); Harvard Business Review (3 April 2020)
… CREATES THREAT TO HEALTHCARE
WORKERS1
Infected healthcare workers as % of all Covid-19 patients
14%Spain
Shortage of both testing and
equipment leave staff vulnerable
to infection.
“Harvard Business Review
New York medical workers decry
‘abysmal’ lack of coronavirus
protection
“ChannelNewsAsia
1As of 3 April 2020
SEVERE LACK OF PERSONAL
PROTECTION EQUIPMENT IN HOSPITALS
REFLECTION 03: RESOURCES

8. Fromthe‘invisiblehand’
ofthefreemarket…
Free market forces allocate resources to
sectors as determined by individual self-
interest
…toredistributive
societal leadership.
Governments, businesses, civil society, and
citizens jointly and boldly respond to crises
together, fulfilling redistributive and
stockpiling roles for public goods
Howcanourbusinessbestsupportthenationalobjectivesofthemarketsweoperatein???
CAN WE ASK OURSELVES:
REFLECTION 03: RESOURCES

9. Companiesthatpaystrongdividendsmaynothaveenough
cashholdingstowithstandseriouscrises
“Even companies that could pay dividends may not do so,
[it is] better to build cash on the balance sheet to deal with
potential pitfalls ahead.
Robert Buckland, Citigroup Strategist
Sources: CNN (1 April 2020); The Conversation (14 April 2020); The New York Times (24 April 2020)
Company profits disbursed as
dividend payouts globally
COMPANIES WITH HIGH DIVIDENDS MAY HAVE LESS
CASH BUFFERS TO PAY HIGHER WAGES AND REINVEST
80%
REFLECTION 04: STEWARDSHIP

10. Fromstrong yields…
Companies buy shares back or return
cash to investors as dividends to drive
up stock prices
…tostrong stewardship.
Tighter governance over shareholder
expectations and business needs,
balancing dividend expectations with
reinvestments in innovation and resilience
Areweholdingontosufficientcashtosurviveseriousshockstothesystem?
CAN WE ASK OURSELVES:
REFLECTION 04: STEWARDSHIP
??

11. TechnologyandInternetstocksdominatetheinvestment
landscape,buttechnologyisnotanendinitself
Sources: Reuters (21 April 2020); MIT Technology Review (25 April 2020); The New York Times (8 April 2020)
TECHNOLOGY HAS MUCH
UNFULFILLED POTENTIAL
“Silicon Valley and big tech in general have
been lame in responding to the crisis..
We’re far less accomplished at reinventing
health care, rethinking education, making
food production and distribution more
efficient.”
“
MIT Technology Review
…TO TACKLE URGENT SOCIETAL
CHALLENGES COLLECTIVELY
Artificial intelligence research groups and the
National Library of Medicine organized the
44,000 scientific research papers on
coronavirus, such that they can be explored
using machine-learning to discover patterns
and relationships
“
The New York Times
REFLECTION 05: INVESTMENTS

12. Fromtechnologyas a key
leverofeconomic
growth…
Technological tools are the pathway to
efficiency and scale, and emphasize
constant productivity and speed
…totools thatenable
humandiscourse.
Technological tools aid humans in bettering
life through collaboration, entertainment,
leisure, and flourishing of the arts
Canourinvestmentsbettersignalthetypesoftechnologiesthathumanityneeds?
CAN WE ASK OURSELVES:
??
REFLECTION 05: INVESTMENTS

13. Sources: Primack (1 July 2017); Waldinger (November 2015)
“
Externalsocialvalidationisaddictivebutnotfulfilling
Higher likelihood of experiencing
loneliness by spending 2 hours
vs. 0.5 hours daily on social media
People who are more socially connected to
family, to friends, to community, are
happier, they’re physically healthier and
they live longer.
200%
Dr. Robert Waldinger
Harvard Study of Adult Development
FROM SCREEN TIME TO “PEOPLE TIME”SOCIAL MEDIA LEADS TO
SOCIAL ISOLATION
REFLECTION 06: CONNECTION

14. …toauthentic
relationships.
Fromthe‘like’
economy…
Human relationships substituted by online
screen time and instant validation from
social media followerships
Establishing deep human connections
outside of social media is necessary for
genuine happiness
Howarewedeepeningourrelationshipswithouremployees,customers,andcommunities?
CAN WE ASK OURSELVES:
REFLECTION 06: CONNECTION
??

15. Manyareconsumingbeyondtheirmeans,fortemporarystimuli
orsocialvalidation
When people organize their lives around extrinsic goals such as
product acquisition, they report greater unhappiness in
relationships, poorer moods and more psychological problems.“Tim Kasser, Author, The High Price of Materialism
If you're poor, it's very bad to be a materialist; and if you're rich, it
doesn't make you happier than non-materialists, but you almost
catch up.
Edward Diener, Subjective well-being and materialism
researcher, University of Illinois
Sources: Kasser (2002); Diener (June 2004); Kahneman (2010)
DIMINISHING, EVEN NEGATIVE
MARGINAL UTILTY OF WEALTH
THE MATERIALISM TRAP
“
Utility
Income
No rise in emotional well-being
beyond $75,000 annual income
REFLECTION 07: CONSUMPTION

16. …tovalue-based,mindful
consumption.
Fromexcessive
consumptionand
materialisticpursuits…
In a social comparison economy,
conspicuous consumption cues
success and achievement
Consumers make purchasing decisions
which are more environmentally- and
socially-sustainable, and create lasting joy
Whatdutyshouldcompanieshavetomanagethe‘right’levelofconsumptionamongourcustomers?
CAN WE ASK OURSELVES:
REFLECTION 07: CONSUMPTION
??

17. Tosavecosts,companiesreallocateresourcesawayfrom
‘unprofitable’butnecessaryassets
Sources: Financial Times (13 April 2020); Business Insider (28 March 2020); The Atlantic (10 April 2020); Straits Times (7 April 2020)
AVOIDING HOSPITAL STOCKPILES
CREATED LACK OF ESSENTIAL SUPPLIES
Rather than keep stockpiles, hospitals stay
profitable by having “just in time” stock,
which is cheaper due to not needing space to
store extra supplies or to test the masks to
ensure they are not expired.
The Atlantic
“ Each time we attempt to raise standards,
employers yelp…. We should be willing to accept
the higher costs that come with higher standards.
“Josephine Teo, Minister of Manpower,
Singapore
DELAYING INVESTMENTS TO MIGRANT WORKER
DORMS CAUSED SURGE IN INFECTIONS
REFLECTION 08: EFFICIENCY

18. …tostrategic
redundancy.
System weaknesses are factored into the
total costs of ownership to allow for spare
capacity and built-in redundancies
Fromhyper-lean
businesses…
Resources are allocated away from
‘unprofitable’ assets as companies strive to
be as efficient as possible to maximise profits
Areweinvestingincriticalassetsevenifitaffectsmargins?
CAN WE ASK OURSELVES:
REFLECTION 08: EFFICIENCY
??

19. Incomeinequalitiesariseasthefreemarketdoesnot
adequatelyrewardessentialservices
Sources: Low Pay Commission Report (2018); Bloomberg News (2 April 2020); The Straits Times (3 April 2020)
>40% A wave of protests and work stoppages is moving
across companies that are delivering groceries and
other essentials during the pandemic… Workers
who form the backbone of the food and medical
supply chains, as well as lower-paid hospital staff,
could understandably walk off the job as well.
Bloomberg
“Childcare workers paid
below minimum wage in
Britain
60%
Home-based care workers in
England on “zero-hour
contracts”
UNDERPAYING ESSENTIAL WORKERS … CREATES ADDITIONAL RISKS TO SOCIETY
REFLECTION 09: WAGES

20. Froma winner-takes-all
freemarket…
The market meritocratically rewards those
who create the most value, at the cost of
widening income inequalities
Arewelookingatouremployeesbeyondthe‘marketvalue’theydeliver?
…toaninclusivesociety
rewarding essential work.
Deliberate allocation of resources to
recognise the value created by jobs not
rewarded by the employment market
CAN WE ASK OURSELVES:
REFLECTION 09: WAGES
??

21. Companiesover-leverageattheexpenseofweakbusiness
models
Corporate indebtedness is now quite high and I think it’s a danger that if
there’s something else that causes a downturn, high levels of corporate
leverage could prolong the downturn and lead to lots of bankruptcies
in the non-financial corporate sector.
Janet Yellen, Former Fed Chair
Sources: Forbes (30 June 2019, 30 March 2020); CNBC (11 December 2018)
Forbes
Even though the economic shock of the COVID-19 pandemic can be
rationalized as caused by an externality, it has sent existential tremors
through the businesses’ house of cards built on excessive leverage.
The imposed shuttering is exposing the balance-sheet frailties caused by
poor fiscal choices made by business executives over the past decade.
“
“
REFLECTION 10: GROWTH

22. …toresilientbusiness
models.
Fromhypergrowth…
There are high expectations for hockey
stick growth, business valuations are based
on growth proxies, and maintaining a
sustainable cash flow is not prioritised
Investors place focus on fundamental value
creation without chasing incessant or
exponential growth
Whatisthepurposeofgrowth,andhowstrongarethefoundationsdrivingourgrowth?
CAN WE ASK OURSELVES:
REFLECTION 10: GROWTH
??

23. Well-being
Is our company fully
and meaningfully
contributing to the
communities we serve?
Production
What capabilities do
we need to ensure an
agile response to
changing market
conditions?
Resources
How can our business
best support the
national objectives of
the markets we
operate in?
Stewardship
Are we holding on to
sufficient cash to
survive serious shocks
to the system?
Investments
Can our investments
better signal the types
of technologies that
humanity needs?
Connection
How are we
deepening our
relationships with our
employees, customers,
and communities?
Consumption
What duty should
companies have to
manage the ‘right’
level of consumption
among our customers?
Efficiency
Are we pricing risks
sufficiently and
investing in critical
assets even if it affects
margins?
Wages
Are we looking at our
employees beyond the
‘market value’ they
deliver?
Growth
What is the purpose of
growth, and how
strong are the
foundations driving
our growth?
Businessescanconsiderthisanopportunityto
realisetheirtruepurposeinsociety
S U M M A R Y O F T H O U G H T - S T A R T E R S

24. …inspiringthemselveswithdifferentmodelsto
systematicallyreconfigureforresilience
Well-being
• Raison d'être
• Social protection
• Corporate
citizenship
Production
• Diversified supply
nets
• Smart
manufacturing
• Strategic agility
Resources
• National interest
alignment
• Industry planning
• Stockpiling
Stewardship
• Risk planning
• Cash buffers
• Corporate
governance
Investments
• Impact investments
• Technology for good
• Human
augmentation
Connection
• Building authentic
relationships with
staff
• Customer intimacy
• Community
engagement
Consumption
• Ethical retail
• Circular economy
• De-materialisation
Efficiency
• Strategic
redundancy
• Critical asset
investments
• Sufficient risk pricing
Wages
• Minimum wage
• Fair compensation
strategies
• Outcomes-based
salaries
Growth
• De-leveraging
• Sustainable growth
• Resilient business
models
S T R A T E G Y M O D E L S T O E X P L O R E

25. ABOUT EDEN STRATEGY INSTITUTE
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+1 212 203 2688
Eden Strategy Institute is a strategy consulting firm specializing in Business
System Innovation. We approach the global issues of urbanization, disease,
poverty, illiteracy, and exploitation by formulating strategies, models,
processes, and products that help our clients create, realize, and sustain
their economic impact. Eden plans and sets up industry blueprints, facilitates
co-creation workshops, and forecasts and evaluates the impact of policy
interventions. Our practice areas include Smart Cities, Education Innovation,
Value-Based Healthcare, Social Enterprise, and the Emerging Middle Class.
To learn more about our work, please visit edenstrategyinstitute.com or
contact us at query@edenstrategyinstitute.com.
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Will you make a Hard Reset
for Resilience?