In all the regional talk of cybercrime, terrorism, and geopolitics, who knew that the ultimate adversary of 2020 and 2021 would be an infectious disease? Save for a handful of epidemiologists; the likely answer is nobody. Our failure to anticipate the deadly coronavirus is forgivable – we are only human after all – but it raises a pertinent question: if an impending pandemic could fly under the radar, what makes us think we can predict the other surprises that life holds in store? For the business world here in the Kingdom of Saudi Arabia and beyond, the reality is this: the days of predicting the future are over – or at least they should be. Even before ‘coronavirus’ made it into the lexicon of daily life, fundamental changes driven by digital technology were already whipping up a storm, disrupting sectors world-wide. In fact, whether it be healthcare, energy, telecoms, real estate or transportation, more has changed in the last five years than in the two or three decades that came before – and the pace of change is only set to increase. For organizations of all shapes and sizes, the call to action is twofold: First, it is imperative to shift focus from strategy development to identifying and building the capabilities/competencies suitable to the industry.. Strategizing relies on hypothesis, speculation, and prediction. By contrast, building the right capabilities – in-house and through partnerships - makes organizations agile, robust, and ready to react to any probable future. Second, companies must rethink how they make decisions. Hierarchy has long dictated decision-making with big bosses calling the shots, but in a context of constant change, that model is no longer fit for purpose. Organizations that have survived – even thrived – during COVID-19 are those that have flattened their decision-making capacity. The logic is simple: lower-level employees are closest to the market, so empowering them to make decisions means the company can react faster. For this new approach to work, companies must populate their payroll from top to bottom with higher caliber personnel who are capable of making decisions, and rely on digital solutions to handle the repetitive activities typically done by human hands. Entrusting technology with such tasks is just one part of the unstoppable shift towards digitalization. Of course, these needs existed pre-pandemic, but the onset of COVID-19 has made them all the more pressing, and for those who choose to adapt and ramp up their digital capabilities, the results can be genuinely transformational. Digitalization is creating the potential for companies across sectors to create 30% to 40% additional business from the same investment. Whether it’s ride sharing apps, online takeaway deliveries or digital health services, the way we live our lives has changed, with clear implications for the full spectrum of industries. Already, transport companies are handling 50% more passengers; restaurants are preparing double the food, and hospitals are serving 30% more patients. Maximizing this potential, however, is no mean feat. It is here, as companies contend with the challenges of digitization and post-pandemic change, that management consultants can prove their worth. But there is a problem. For too long, management consulting has proven far more beneficial to consultant than client. On average, clients only manage to fully implement and benefit from around 50% of consultant recommendations. In contrast, consultants are paid almost in full and are rarely touched by the fallout resulting from bad advice. So, just as COVID-19 compels companies to transform, the client-consultant dynamic must also change, and central to this process is a rethink of fees. Simply put, fees should not be based on time and resources but on outcome and benefits. This is not to say that consultants should be paid less; instead, those who truly deliver results should be rewarded accordingly. The consultants should share the risk and reward, with mutual benefits for both parties. Naturally, it is the best in the business who deliver the best outcomes, and this is where the second shakeup should occur. In their search for external support, organizations typically gravitate towards large multinational consulting firms. Yet, the larger the firm, the more internal (restricted) the expertise. Consulting heavyweights rely almost exclusively on their internal capabilities, while smaller, more agile firms take an ‘open consulting’ approach, complementing internal expertise with best-in-class external expertise to deliver the best possible results. With the proper support, there has never been a better time for companies to ramp up their capabilities and transform their businesses. The past year has been tough, but if there is a silver lining, it’s this: only 10% to 20% of the potential we see today existed before COVID-19. All that’s left is to realize it. Thomas is a member of the Global Board of Arthur D. Little and the Managing Partner of Arthur D. Little Middle East. Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News" point-of-view