Eight clusters of action: How the country and companies are getting back on track for success after Corona

Switzerland's competitiveness has declined. The country risks losing its top international position and slipping into the midfield. Economists are concerned about low productivity growth and in various relevant rankings (e.g. WEF Global Competitiveness Report 2019 or World Bank Report Doing Business 2019), Switzerland is losing its attractiveness as a business location. In addition, there are the after-effects of the Corona crisis, which has not yet been overcome and magnifies the existing challenges. If Switzerland does not act in a timely and decisive manner, there is a risk that competitiveness will deteriorate further, growth will weaken and the country will no longer be able to maintain its leading position.

Corona crisis exposes failures

Despite the widely praised response of the Swiss authorities in the early stages of the pandemic, weaknesses also became apparent. "The Corona crisis exposed government failures that are not befitting a modern and innovative country," explains Michael Grampp, chief economist at Deloitte Switzerland. A new report entitled "Power Up Switzerland" comes from this consulting firm. As a basis for information, around 400 leading representatives from business, associations and politics were surveyed on the success factors for Switzerland. In the comprehensive analysis, eight central clusters of action emerged that now need to be addressed in a coordinated manner by the state and companies.

Eight action clusters with great potential

"In April and May, we used surveys and opinion articles to show how COVID-19 is changing our lives. Now Power Up Switzerland serves as a road map for renewing Switzerland's model for success. We want to offer suggestions on how to make the economy and businesses in Switzerland more sustainable and resilient," Reto Savoia, CEO of Deloitte Switzerland, explains the background of the new report. Deloitte had already surveyed 400 leaders in business, government and associations about Switzerland's competitiveness in January 2020. Participants in the online survey assessed a total of 21 influencing factors. From these, Deloitte's economists and industry experts identified eight topics with the greatest potential for success. The Corona crisis and the measures taken by the state and companies as a result were included in the evaluations.

Sustainable and robust into the future

"Swiss companies must now strengthen their innovative power and initiative, and reposition themselves internationally," Savoia demands. For each of the eight action clusters identified with Power Up Switzerland, Deloitte has developed numerous measures to strengthen the competitiveness of Switzerland and the companies based here. Politicians can also achieve a great deal by dismantling trade barriers, reducing the density of regulation, reorganizing the pension system, or digitizing their own administration to a much greater extent, the report continues.

The measures for companies can be summarized under the common umbrella term "sustainable resilience": Sustainability requires inclusion of the environment, society and the economy - a triangle of topics that, according to the current swissVR Monitor, is still not being dealt with systematically enough by many companies. Resilience must be increased in order to survive difficult economic situations without sustained impairment.

Action cluster "Workforce and education

"Sustainable resilience" in international trade, for example, means that companies need to re-evaluate their existing supply chains and location strategies in order to optimize and differentiate them. In the case of environmental issues or taxes, it makes sense to intensify the dialog with relevant stakeholders and communicate transparently in public in order to engage in a constructive dialog at eye level," says Savoia. "There is also considerable potential for greater resilience in employee management," he adds. The workforce can be granted more mobility, flexibility and personal responsibility, he says. If more and more employees can work more independently in terms of time or location, the resilience of the organization will increase, he says. And companies need to realize that better integration of older workers and women can make a significant contribution to combating the growing skills shortage, Deloitte adds. Skills and knowledge could increasingly be acquired and shared via digital platforms. In order to successfully implement these changes, a cultural change, a future-oriented HR strategy and the necessary technical infrastructure are needed.

Source and further information: www.deloitte.ch