COVID - 19 Implications and the Next Steps? - Vol. 21 Belgrade office - Stanton Chase
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Vol. 21
Belgrade office 2020
COVID – 19 Implications and the Next Steps?
www.stantonchase.com
In this issue: 12
Interview – Ivan Vitorović
CEO, Mona Hotel Management
03 15
Interview– Miloš Jelić Interview – Milica Jović
CEO of Nelt Group People & Culture Director South East Europe
Philip Morris International
05 17
Interview – Dragan Filipović
Interview – Nenad Vučinić
CEO, Generali Osiguranje Srbija
General Manager, TeleSign Serbia
07 20
Interview – Violeta Kovačević Interview – Andrej Beslać
CFO, Mercator - S General Manager , Mlekoprodukt Zrenjanin,
Part of Savencia Group
09 22
Interview – Mirjana Lučić
Interview – Narcis Popescu
General Manager for Weber SRB, MNE and BiH
General Manager, OMV Serbia Saint Gobain Construction products Serbia
10 25
Interview – Nikola Đenić Interview – Aleksandra Mirić
Partner, KPMG Director, Pharmanova
Miloš Tucaković
Managing Partner
Regional Practice Leader EMEA for Consumer
Products & Services, Stanton Chase International
Dear Readers,
COVID-19 emerged out of nowhere and like a We are witnessing the recovery of the Chinese
tsunami devastated the whole planet. We economy after the pandemic. The fact is that
cannot yet perceive the aftermaths, we can China is the greatest exporter in the world and
only speculate about them, but we are about to that their recovery means a lot, but it will be
face them both in economic and in every other enormously important that other economies
sense of the word. do not stumble either. Germany has
announced the increase of public investments,
The forecasts are that the economic growth but the economy pressures for additional aid.
everywhere in the world will be much lower The French government has postponed tax
than the planned one. Certain branches of collection and other liabilities. Italy has also
industry have been hit really hard and the been taking different measures to protect its
question is how much time they will need to citizens and the economy. The Bank of
recover. This applies mostly to the air travel England has decreased interest rates by 0.5
industry, tourism and catering industry. The percent.
estimates go that the air transport will lose
over USD 100 bn. A huge economic damage What are the implications of this tsunami to
was made in the first quarter to all the our businessmen both in the country and
companies which dealt with China, and this abroad? To which extent has COVID-19
damage followed the expansion of COVID-19 already affected the business operations, work
throughout the planet. procedures, employees? This is what our
interviewees from different industries inform
The majority of the world governments have us about. Through these interesting interviews
undertaken certain measures to alleviate the we wanted to give you a comprehensive
effects of the crisis. For example, South Korea picture of what is happening both in our
has announced a package of various measures country and in the region.
in the amount of app. USD 10 bn.
Enjoy your reading!
www.stantonchase.com 2
Miloš Jelić
CEO, Nelt Group
SCI: COVID-19 is an unprecedented Our warehouse men, distributors, shop assistants,
situation for any company. What did you do merchandisers are onsite daily. Business processes
to protect your employees and the business function regularly, we have daily contacts and
once the pandemic started? coordination with principals, state authorities,
business organisations and other business
M.J.: As soon as the pandemics started, all the partners. Our focus is to supply the population,
companies of the Nelt Group started taking who is need of our products and to overcome the
preventive measures in communication, current situation in the simplest possible way.
notification and most concrete operational
activities with the aim to prevent further SCI: Have you been surprised by the
contagion. The majority of employees from back- reactions of your employees, either positive
office have been directed to work from home. The or negative?
most vulnerable groups have been sent on paid
leave. All of our field employees have been M.J.: There were no particular reactions, everyone
informed about and equipped with the necessary has adjusted very quickly to new circumstances,
means for protection and disinfection. All the realising that the specific situation requires
business trips have been cancelled. specific measures and a manner of conduct. Both
in the Serbian market and in other markets where
We have established Crisis management team Nelt operates, all the employees have accepted
which includes Nelt’s key managers and specialists their tasks very quickly, selflessly and with
who have modified our business continuity plan in motivation, making sure our business run
the segments of distribution and logistics. We smoothly and enabling the goods to reach the
coordinate daily and meet via video conference buyers.
system.
Key functionalities have been defined and further
steps planned as regards the execution of our
operations, so that we could in time and in the best
possible way supply markets by the products from
our portfolio. We have been complying all of our
internal legislation with the recommendations
given by the relevant state authorities and the
WHO.
www.stantonchase.com 3
SCI: Do you believe that this situation will The speed of recovery will depend on many factors,
affect the way your company will operate in the severity of the situation due to the effects of
the future? And if so, in which way? coronavirus in different regions, the effectiveness
of the measures taken at the state and corporate
M.J.: Naturally, the extraordinary circumstances level, the government’s support to the economy.
required adjustment of business operations to the
new working conditions in all segments, including Researches, expert appraisals and proposal of
more increased communication via online measures for overcoming contagion consequences
applications, phones and web services. As our have already been available, which will certainly
company is the leader in innovations and help companies get back on track. However, it is
implementation of new technologies, we have been certain that the way of doing business will change
intensively working on digitalisation in all business once and for all, and that we will have some new
operations – including the field of sales – even 'standards'.
before this current situation occurred. Once the
situation has stabilised, we shall continue in this SCI: Do you expect a recession on the local,
direction, as that is obviously the future of doing regional or global level?
business.
M.J.: It is certain that there will be recession at all
SCI: In your opinion, what will be the levels, due to the significant impact of COVID-19
financial impact on the industry you work on all industries worldwide. Delays in business,
in, and how long shall we feel the effects of manufacturing and supply chain, impeded
COVID-19? transportation and delivery of goods, reduced
movement of people, will certainly have long-term
M.J.: The turnover of consumer goods has surely consequences on the world economy. The positive
been less affected by the current situation than effect of this crisis is that companies have been
many other industries, but the negative impact is forced to identify weaknesses in their operations,
certainly not negligible, and it is likely that the quickly find ways to overcome them and use new
effects of COVID-19 will be felt till the end of this opportunities to optimize operations without
year. sacrificing efficiency. In this way, the negative
effect has at least been partially mitigated.
www.stantonchase.com 4
Dragan Filipović
CEO
Generali Osiguranje Srbija
SCI: COVID-19 is an unprecedented We have provided protective masks, gloves and
situation for any company. What did you do disinfectants for all the employees and we
to protect your employees and the business regularly inform them of their proper usage. All
once the pandemic started? the employees are obliged to report every case of
coronavirus infection either of themselves or of
D.F.: Generali Osiguranje Srbija/Generali their family members, whereupon they go into
Insurance Serbia has promptly and responsibly self-isolation or to hospitals, as per the regulations.
reacted in order to protect our employees‘ and our
clients‘ health. Even before the state of emergency Obviously, no one has planned such a situation to
was proclaimed in our country we had organised occur, but having in mind that the risk map of our
work from home for over 90% of our employees. company includes pandemics in general and the
That was easy for us as we have been practicing accompanying Business Continuity Plan made for
occasional work from home for the past three years handling such type of risk – we have quickly and
already. We have been technically equipped for responsibly implemented all the measures
that already, having in mind the care for our pursuant to BCP.
employees and for their work-life balance. Apart
from the option to work from home – the measure
for the protection of both of our employees and our SCI: Have you been surprised by the
clients, we have also enabled the option of digital reactions of your employees, either positive
damage claims and digital sale and renewal of or negative?
insurance policies. We have closed our offices in all
the cities which have been detected as hotspots, D.F.: Our employees are generally great
while in other cities we have either organised work professionals with great sense for working ethics,
from home or shortened the business hours and so that in this extraordinary situation they have
provided that all the precautionary measures been behaving highly professionally and
prescribed by the relevant authorities be fully responsibly, which is not a surprise to us. In
observed. We have organised meetings through the addition, I have to say that so far we haven’t had
applications Microsoft Teams and I Go To Meeting any negative reaction from our employees, which
so that we are regularly communicating. In is really great.
addition, we have been distributing all the
necessary information every Friday, online,
through Generalist – which is shared to all the
employees – not only regarding COVID-19
infection, but also regarding everyday business
information.
www.stantonchase.com 5
SCI: Do you believe that this situation will SCI: Do you expect a recession on the local,
affect the way your company will operate in regional or global level?
the future? And if so, in which way?
D.F.: Global recession is not questionable
D.F.: I personally think that some of the anymore, but its duration is. We are witnessing
procedures which have been organized now due to huge job losses throughout Europe and the USA.
“Force Majeure“ shall stay implemented even after People remain jobless, which decreases global
the pandemic has been over. It turned out that consumption which will then automatically show
distant meetings could be professionally production decrease, lower new investments which
organized, that damages could be efficiently in turn automatically brings to GDP decrease. As
claimed, processed and paid and that online sale for our country, I also expect GDP decrease, a few
and renewal of insurance policies is also possible months’ halt in the investment and production will
digitally – which our company has already inevitably bring to that. The Government of the
advocated for several years in the past. Some in- Republic of Serbia has enacted very good measures
house trainings can also be performed online. All so as to help small and medium-size enterprises to
the processes organized in the mentioned way survive, as they are the most endangered business
could be used even after the pandemic has ended. subjects in our country due to COVID-19 infection.
These measures shall help maintaining companies’
SCI: In your opinion, what will be the liquidity and keeping jobs in our country, which
financial impact on the industry you work can significantly influence faster exit from the
in, and how long shall we feel the effects of economic crisis once the pandemic has ended.
COVID-19?
D.F.: As for the negative financial impact on our
industry – it shall exist. It is still early to say what
the volume of the negative financial impact shall
be, as we still do not know for how long the
pandemic shall last. Companies’ liquidity shall be
affected, collections of claims, new sales of
insurance policies. Our industry shall definitely
experience serious financial consequences because
of COVID-19.
6
www.stantonchase.com
Violeta Kovačević
CFO
Mercator - S
SCI: COVID-19 is an unprecedented We have adjusted prices, working hours and the
situation for any company. What did you do manner of working in the stores in line with the
to protect your employees and the business decisions taken by the government. In order to
once the pandemic started? protect the most vulnerable groups of our
employees we have given the option of paid leave
V.K.: Although this is a totally new situation for all and work from home to a large number of our
of us, we have faced it relatively prepared – so to colleagues.
say – as we have had the experience of Mercator
Group from Slovenia already, having in mind that SCI: Have you been surprised by the
the precautionary measures were undertaken there reactions of your employees, either positive
earlier. They started preparing for prevention and or negative?
protection from coronavirus as early as end-
February. Our company formed a team for crisis V.K.: Along with medical staff, police and army as
management and outlined 4 different stages and a whole – shop assistants showed great courage in
levels of pandemic escalation, then defined the this situation. Aside from their daily duties, our
rules of conduct for all the organizational units. In colleagues were also a part of volunteering
cooperation with our providers we have ensured to activities. My colleagues Radovan Steljić and Luka
have sufficient supplies of goods in our stores. Veličkov joined the disinfection procedure of the
Apart from that, we assumed that there would be a towns Kula and Kikinda. Our colleague Milica
great demand for medical items, which is why we Kuzmanović, although nine months pregnant
have also ensured to have sufficient amount of joined the initiative and has been sewing
protective medical items. protective masks for Homes for the Elderly.
Dragan Uglješin joined the group Vizionari Srbije
At the moment when the first case of COVID-19 (Serbian Visionaries) and made medical face
infection happened in our country, we have set up shield visors for health care staff of the Clinical
a process of clear and transparent communication Centre of Vojvodina. We are especially proud of
with our employees and all the relevant our colleagues Savo Kolundžić, the Head of VP
institutions. Through immediately established Centre Belgrade, and Gorica Branković, the Chief
“day-to-day“ online communication platform for of IDEA Super Store in Južni bulevar Street, who
our employees, we have instantly informed them have been nominated – having in mind all their
of the prevention measures announced by the merits – for “Belgrade Heroes“. They are our
World Health Organization. We have given heroes, and Mercator-S is proud of them. All our
protective gloves and masks to our employees and employees showed sense of great responsibility
placed protective barriers at all cashiers‘ desks. In and belonging to the company and to the society,
addition, we have set the two-meter minimum they have exceeded all our expectations, and their
distance between persons and defined the work attitude was crucial for us to meet the
maximum number of people present in our stores. expectations of all our buyers, having in mind the
importance of food industry in these
www.stantonchase.com circumstances. 7
SCI: Do you believe that this situation will
affect the way your company will operate in
the future? And if so, in which way?
V.K.: Prior to this pandemic, work from home –
for us as a system, not in individual cases – was
inconceivable. Today, it is totally different.
Approximately 60% of our employees in
administration work from home, and they are as
efficient as when working on our premises. All the
operations are finished on time and there are no
delays. I think that this situation both in Serbia
and the world improved significantly digital
transformation of companies. In these unexpected
and difficult conditions, many companies have
adjusted very quickly to the new operational
conditions of doing business and for sure some of
such alterations made in work procedures and in For example, our e-commerce business has been
communication channels shall stay, as we all see developing now faster than ever before! IDEA
that the system functions very successfully. Online shop and the service “Pick-up order“ have
been operating in full capacity for weeks already.
We have constantly been working on expanding
our capacities and enlarging the number of terms,
but that could never equal the demand level.
Hence, the business operations shall go in the
SCI: In your opinion, what will be the direction of a large digitalization, and – in my
financial impact on the industry you work opinion – that will be the greatest change to adjust
in, and how long shall we feel the effects of to. Companies which can direct their operations to
COVID-19? digital platforms shall to a certain extent lessen
the negative effects of this pandemic and shall
V.K.: Corona virus strongly affects world economy maintain certain level of operations, both
as a whole, e.g. McKinsey company forecasts for currently and long-term as well.
GDP in Eurozone to fall by 4.7%, and on the global
level to fall by 1.8%. Naturally, the final effects SCI: Do you expect a recession on the local,
shall depend on the period of duration of the regional or global level?
contagion, with our hope that the pandemic shall
end soon. For the trade sector, in which our V.K.: Recession on global, regional and local level
company operates, it is very important to have is inevitable. The only thing we can hope for is that
great cooperation with the providers – which we the measures which our government has enacted
are very proud of and very thankful for, as they would be sufficient to alleviate the consequences
have invested great efforts in these extraordinary of the crisis. As far as the trade sector is
circumstances so that the whole supply chain concerned, although Mercator-S provides more
would function without any delays. than 70% of its merchandise from the local
manufacturers and providers, I think that the
Clearly, consumers’ habits have also changed, as recession and the challenges in international trade
well as the delivery manner and functioning of are an opportunity for us to turn even more
almost every business sphere. vigorously towards the development of local
manufactures and brands and in that way try to
recover the local economy as fast as possible.
www.stantonchase.com 8
Narcis Popescu
General Manager
OMV Srbija
SCI: COVID-19 is an unprecedented SCI: Do you believe that this situation will
situation for any company. What did you do affect the way your company will operate in
to protect your employees and the business the future? And if so, in which way?
once the pandemic started?
N.P.: Absolutely, the most positive aspects will be
N.P.: First of all we implemented home-office for further explored in order to be implemented to our
all employees, 95% of the Head Office. Also we business operations in the future, most
delivered protective equipments to our employees prominently digitalization as well as empowering
such as: people’s autonomy.
✓ All employees are supplied with rubber gloves, SCI: In your opinion, what will be the
masks and hand sanitizers, financial impact on the industry you work
✓ All employees received information on relevant in, and how long shall we feel the effects of
health institutions re COVID-19 COVID-19?
✓ There is a regular communication with all Fuel
Stations (FS) and health status of employees is N.P.: In oil industry the expectation is that the
being monitored results of the COVID-19 will be felt throughout this
✓ At all our FSs the marks for keeping the year, since what we are experiencing is actually
distance are set on floors, as well as overlapping of the health crisis, oil price drop
notifications on doors for customers to wait influenced by international players and the drop of
outside demand determined by COVID-19 crisis.
✓ OMV Serbia performed preventive professional Consequently, some or all of this will accelerate
disinfection of all FSs as a part of measures for changes in the industry.
protection of our employees and customers.
SCI: Do you expect a recession on the local,
SCI: Have you been surprised by the regional or global level?
reactions of your employees, either positive
or negative? N.P.: Global, European and local.
N.P.: We have only positive reactions from our
employees. They support and recognize that
company takes care about them. There are lot of
initiatives in terms of digitalization to which
people adopt extremely well, with a speed higher
than ever during these circumstances. Everyone
works with a high level of autonomy, they are all
very responsible, feel motivated and show very
great adaptability and communication skills.
www.stantonchase.com 9Nikola Đenić
Partner
KPMG
SCI: COVID-19 is an unprecedented SCI: Do you believe that this situation will
situation for any company. What did you do affect the way your company will operate in
to protect your employees and the business the future? And if so, in which way?
once the pandemic started?
N.Đ.: A change of work mode is inevitable, and I
N.Đ.: Protecting our people remains an absolute am satisfied how we have adapted to the new
priority for all of us and I appreciate everything situation.
our people are doing in order to continue with day
to day operations. Interestingly, remote work has also shown an
increase in efficiency in some segments and with
Covid-19 is definitely a situation we did not expect some employees.
and did not prepare for, and secretly hoped it will
avoid us. Following the outbreak of the pandemic, I strongly believe that we have a duty and an
we followed the instructions of the WHO, the obligation to step up in this crisis. There can be no
KPMG Global Network, as well as the measures compromises on audit quality – we have a public
implemented by the Republic of Serbia and we interest obligation to the capital markets and our
enabled all our employees for work from home stakeholders such as investors, shareholders,
without interruption. Bearing in mind the nature boards and regulators.
of our business, which is a frequent work outside
the office, we quickly and effectively adapted to the ✓ Protecting our people
new situation. ✓ Protecting our stakeholders
✓ Protecting our firm
SCI: Have you been surprised by the ✓ Protecting our society
reactions of your employees, either positive
or negative? I am particularly proud of the KPMG partnership
with UNESCO within the Global Coalition for
N.Đ.: All employees’ reactions are extremely Education.
positive. Communication with employees is more
important now than otherwise. That is why we
organize video meetings for departments and
whole staff over Skype and Microsoft Teams to talk
about all the challenges they are facing, so that we
can overcome them together.
www.stantonchase.com 10At a time when 91 percent of the world’s student Given our significant experience in the 2008 crisis
population is affected by COVID-19 school and in the area of restructuring, we currently have
closures, UNESCO is launching a global education projects where we help our clients reorganize their
coalition to support countries in scaling up their businesses and prepare for the period of exiting
distance learning best practices and reaching the crisis, which will definitely not automatically
children and youth who are most at risk. mean returning to the pre-crisis level of business.
KPMG is one of the private sector founding Our company is also fortunate to be a part of a
partners, along with Microsoft, GSMA, Weidong, global network and can use the experience from
Google, Facebook, Zoom and Coursera, who regions that have already gone through the crisis
collectively will be donating resources and and where business is returning to normal.
expertise linked to technology and capacity
strengthening. It is a great example of KPMG SCI: Do you expect a recession on the local,
living its purpose, building on its longstanding regional or global level?
citizenship commitment to SDG 4 ‘Education and
Lifelong Learning’ and its expertise in this area. N.Đ.: A recession in 2020 is inevitable at all levels
and we can see that the latest projections of
SCI: In your opinion, what will be the economic growth, i.e. slowdown have already been
financial impact on the industry you work made. The Republic of Serbia has adopted a set of
in, and how long shall we feel the effects of measures that I believe will mitigate the negative
COVID-19? effects on the economy. Also, we need to look
ahead and make sure that recovery is as fast as
N.Đ.: Like any crisis, the Covid-19 crisis will possible and that the negative effects end as soon
definitely have a financial impact on business in as possible, so that the recovery curve has the
our industry, as well as in many other industries. appearance of a shallower and sharper letter V.
It is very important to bear in mind that every
crisis also represents an opportunity, but only for
well-organized and efficient firms that can adapt
quickly to the new situation.
Although we see a definite drop in demand for
certain services, primarily in the transactions
segment, as most transactions are delayed and
temporarily stopped, we have refocused our
resources and concentrated on those types of
services that are needed in times of crisis.
www.stantonchase.com 11Ivan Vitorović
CEO
Mona Hotel Management
SCI: COVID-19 is an unprecedented Our standpoint is not to lay off our full-time
situation for any company. What did you do employees because they are the most important
to protect your employees and the business part of our company, which is why we will even
once the pandemic started? take loans to overcome this situation until our
capacities have been employed full-time.
I.V.: I honestly don't know if any company in the
world was prepared for a scenario like this one!
And like the rest of the world, we were also
bewildered by the situation. I have to admit that I
have been closely monitoring the situation in
China since the beginning of January, as a SCI: Have you been surprised by the
significant part of the Zlatibor guests come from reactions of your employees, either positive
the Far East, and the similar applies to the Mona or negative?
Plaza Hotel in Belgrade. Then in the first week of
March it became obvious that the expected I.V.: It seems to me that the employees are fully
decrease in demand was turning into reality of aware of the situation, because we are not talking
shutting down our hotels! Tourist industry has the about reducing the volume of business, in our
misfortune to be the first to experience such kind industry we are talking about being closed, i.e. that
of crisis and the last one to recover! In such a new there is no income until further notice! If we look
situation, the only logical solution was to close all at it that way, any salary paid to an employee
four of our hotels in Belgrade, because, due to low during the period when hotels are out of business
demand, it was not rational to keep the is a huge effort, and I really see that employees
infrastructure employed, when variable costs were appreciate it, especially the employees who have
significantly higher than current business income. been with us for many years. The real question is,
The facilities were closed in the second half of if such payments could be called earnings because
March, workers were sent to collective vacations, this term is used when a business is operating and
and on-call duties were organized, while observing you earn something, I don't even know what the
the measures of social distancing. term is for compensation when you don’t operate
and earn nothing!? Then, there are the colleagues
On the other hand, our business does not exist at who have been affected by the measure of not
the moment, so, when you have only the costs you extending their labor contracts and it is certainly
have to rationalize them as much as possible, by not easy to remain without a contract extension.
reducing wages, not renewing contracts to Unfortunately, our hands are tied as we do not
temporary employees and the like. know when we will start working again, and when
we will fully engage our full-time employees; it will
be very challenging in the forthcoming period, not
to say for years!
www.stantonchase.com 12I have been trying to present the situation to the
managers as realistic as possible, so that they
could understand that the unpopular measures are
actually very mild, because we are fighting now for
the survival of the company.
Furthermore, the analogy of lifting various bans
suggests that the restrictive measures will be
phased out one by one, and this will be the process
resulting in a reduced demand. So, we must not
forget that the measures are being gradually
phased out, but unfortunately, such measures or
even stricter ones can be re-instituted overnight, if
need be! SCI: Do you believe that this situation will
affect the way your company will operate in
When we put all this in the context of tourism, my the future? And if so, in which way?
opinion is that the industry will slowly start to
recover from end-June, beginning of July in resort I.V.: Absolutely! Tourism, traffic, services in
destinations and that 2020 will be exclusively general, will be greatly affected. We will have to
marked by domestic tourism, and these are adjust on the cost side and maximize cost
generally the forecasts and recommendations of rationalization!
many European countries. We can expect city
hotels to start operating in the fall, but with much We will also have to try to change the business
lower volume! This is the fact that I am model, where possible. An important element is
communicating to others and the starting point of that we will have to work very hard to establish
our further analyses regarding the onset of our and implement a new standard of hygiene, as an
work and the planning of our costs and revenues. important disease prevention measure, and this
will be crucial for eliminating the fear of travel and
becoming credible business to which guests will
trust and choose to come and stay. We have
already been working on these standards, oriented
towards several categories: accommodation,
restaurants, playrooms, and wellness. Each
category is treated separately and will have its own
standards and operating procedures to protect the
health of our guests as well as of our employees!
www.stantonchase.com 13SCI: In your opinion, what will be the I expect full market recovery in 2022, when I hope
financial impact on the industry you work for us to reach the level of 2019 in terms of
in, and how long shall we feel the effects of employment, foreign exchange inflows and growth
COVID-19? prospects. In the meantime, 2021 will be a year of
stabilization, business model predictability, and
I.V.: This is a very difficult question to answer, hopefully the end of the challenging period in
because the situation is changing day-to-day, and every sense.
there are many unknown facts as regards the end
of the pandemic!
I will present here my personal opinion, based on
the assumption of the stabilization of the
pandemic in July and milder occurrences of
contagion in the autumn when a second tide, of
lower intensity, is expected, as the professionals
say. So, the assumption is that this year is
definitely going to be affected by some form of
social restraints, and my expectation is that the
crisis will end in 2021, either with the weakening
of the virus or the discovery of the vaccine. SCI: Do you expect a recession on the local,
regional or global level?
The aftermaths of COVID-19 are certainly negative
and as such, they will have the following I.V.: According to all the indicators, the global
implications in the domestic hotel market: economy will be hit much harder than during the
2008-2009 crisis; some economists even compare
✓ First of all, this year's hotel business shall drop this crisis to the Great Depression of 1929-1933. A
by 35% to 40%, provided that the situation world-wide decline in GDP is imminent and the
stabilizes from July onwards. City hotels will be effects will be felt for years. If we look at the
more significantly affected. historical data of the world economy, we will see a
✓ The drop in the hotel business shall be positive correlation of the GDP growth of America
accompanied by a large drop in non- and China with other weights of the developed
accommodation consumption, so that the net countries in the world, but with a delayed effect of
effect on foreign exchange inflow from tourism several years. Meaning that when the US or China
will surely be a decrease by 25% to 28%. record GDP growth, the European countries also
✓ According to the data from the last quarter of have a positive GDP growth, but several years
2019, precisely 83.140 employees have been later. And vice-versa ... So, the crisis will be
currently working in the hospitality industry, determined by the GDP of the developed
and as a consequence, we can expect a 20% countries, China and the US primarily.
decrease in employment, with an additional
decrease of 15% in average wages. Of the Looking at the local level, I expect the GDP decline
aforementioned number of employees, to be smaller than in the developed countries, for
approximately 15.000 employees have been numerous reasons. In the medium run, the issue
working in hotels, so there we can also expect a will be the recovery speed of the national and
linear decline in employment and average regional economics, since a number of non-
wages in 2020. economic factors influence this trend as well.
✓ Investments will slow down, the ongoing
projects will be finished, and I believe new ones Finally, it is good that the national economy has
will be postponed for the next 2 to 3 years. been growing in recent years, so that I see no
reason why we would not recover faster than the
region!
www.stantonchase.com 14Milica Jović
People &People & Culture Director
South East Europe
Philip Morris International
SCI: COVID-19 is an unprecedented The second category of employees facing
situation for any company. What did you do significant challenges are our colleagues in the
to protect your employees and the business factory. In the production process, there is no
once the pandemic started? space for creativity, and the type of work one does
at the machine cannot change overnight. What we
M.J.: We did not wait for the pandemic have done is to provide the maximum level of
announcement in order to protect our 77 thousand protection to our colleagues, from the moment
employees throughout the world from the virus. they take specially provided transportation to the
Frequent guidance on how to act in new factory, throughout working in adequate protective
circumstances and continuous process equipment and in disinfected environment.
adjustments that ensured employees safety were
initiated with first COVID-19 cases outside of SCI: Have you been surprised by the
China. At the moment when our country had its reactions of your employees, either positive
first reported case, we had multiple preventive or negative?
measures already implemented. At the start, all
meetings became virtual, business travel stopped, M.J.: The strength of our organization is in all of
and work from home was introduced wherever us who have taken this situation in a very
possible. Furthermore, we have allowed paid leave responsible way. Our people are our absolute
for all employees belonging to more vulnerable priority and we have clearly communicated this at
groups and to those who have to take care of their all times. Throughout multiple channels, we are
children. maintaining the dialogue and solving challenges.
We have also conducted an internal survey in
However, there are two groups whose work was order to check whether our colleagues are satisfied
not possible from home. A part of our employees with the quality and the quantity of information
used to be in a daily contact with our consumers. they are receiving, as well as with our reactions to
And while it was challenging to adapt to the new their inquiries. With satisfaction rate of 88
reality, we have managed to minimize physical percent, I believe that we can say that the reactions
contact through additional emphasis on digital are positive. However, satisfaction goes beyond
channels and implementation of protective sheer numbers, as in our virtual meetings
measures. By doing so we have managed to connections are stronger and deeper than ever, as
achieve, and in some cases even overcome, can happen during crisis.
expectations of our consumers.
www.stantonchase.com 15SCI: Do you believe that this situation will SCI: In your opinion, what will be the
affect the way your company will operate in financial impact on the industry you work
the future? And if so, in which way? in, and how long shall we feel the effects of
COVID-19?
M.J.: Throughout last month, there has been a lot
of talk on how the crisis diverted a large portion of M.J.: At this moment, I think it is too early to talk
business activities into digital channels, and at about scale of financial impact to our or any other
least temporarily sped up digitalization across industry. Consequences will be unavoidable, but
multiple industries, as many transactions are they are not our priority at the moment. When this
taking place online. If there is at least one good situation comes to an end and we are all healthy
thing to point out in this situation, it is the fact that from it, we will tackle this problem, large but not
PMI, albeit a large corporation, can divert its insurmountable. And we will rely on science,
resources into online channels very quickly. We innovation, and listening and adapting to the
have been developing „start up“ approach and needs of our consumers which may be drastically
agility for some years back and we are collecting different tomorrow, in the aftermath of this
benefits of our work now through quickly adapting historical turning point.
to the situation. There are multiple limitations
imposed by this newly developed situation, but our SCI: Do you expect a recession on the local,
focus and level of organization are better than regional or global level?
ever. As we are already in the sixth week of state of
emergency, this is slowly becoming „the new M.J.: Forecasts differ on how long the pandemic
normal“ and regular environment for us all. will last – optimistic ones state that the situation
shall normalize by the fall, while more realistic
ones expect solution will come from the
development of vaccine or adequate medical
treatment. Each scenario holds different economic
consequences. To complicate the answer even
further, different international institutions are
coming up with different forecasts. While ones say
that recession is inevitably going to happen, it is
only a question of how long and how deep it will
be, the others are more optimistic in predicting
only a slowdown in growth. I do not feel
comfortable to forecast anything, I just want to
hope for less bad scenarios.
www.stantonchase.com 16Nenad Vučinić
General Manager
TeleSign Serbia
SCI: COVID-19 is an unprecedented Examples:
situation for any company. What did you do
to protect your employees and the business ✓ Communication channel guidelines that allow
once the pandemic started? employees to optimize remote communication
and create consistent norms and efficiencies
N.V.: At TeleSign, we have business continuity ✓ A stipend to employees that could be used for
plans (BCP) in place for any scenario that might anything related to wellness or optimizing a
afflict our global operations, with the purpose to home workspace
protect our business, and in which, among many ✓ Leadership training end e-learning resources
other measures, everyone of us had to self-isolate ✓ Daily, socially driven conversation topics on
and work from home. COVID-19 appeared to be Slack
such a scenario. ✓ Weekly wellness Zoom sessions ranging from
meditation and wellness to cooking classes
In Belgrade and Los Angeles, prior to any ✓ Weekly employee surveys to gauge satisfaction,
government mandates or curfews, we restricted all productivity, and gather general feedback, plus
travel and transitioned to a global work from home increased our rhythm of 1:1s across the
(WFH) dynamic. Additionally, we created and company
distributed a Coronavirus Action Plan (CAP) that ✓ Remote social events at a departmental level
provided clear instruction on safety precautions, and across the company
self-quarantine protocol, business operations, and
emergency procedures. Under normal conditions, Being a customer centric company, it is also
WFH is an appreciated and frequently used benefit important to stay engaged with our customer base.
in our company. However, an on-going WFH setup To that end, we developed key touchpoints such as
is also connected with some challenges, so we do TeleFest, a six-week remote festival, including
our best to support our people as best as we can. wine tastings (where we ship customers a flight of
For instance, we’ve implemented structures and wine), magician performances, yoga classes and
programs to optimize our employees’ more. Open to employees, customers and their
communication, productivity, engagement, and families, TeleFest is designed to encourage the
wellness. TeleSign community to stay connected.
www.stantonchase.com 17We know that this is a challenging time for many, My sense is that we will balance allowing and
and this festival is our way of letting everyone encouraging more of a remote team and having
know that they matter to the company. We’d like to more flexibility for what works best for each
ease the stress of staying at home with meaningful individual and team. We’ve gained new
and fun activities that help bring people together perspectives on the value and efficacy of
no matter where they are. operational flexibility and want to adapt it further
to meet the needs of the company and our
SCI: Have you been surprised by the employees in the best possible way.
reactions of your employees, either positive
or negative? SCI: In your opinion, what will be the
financial impact on the industry you work
N.V.: At TeleSign, from the very start of our in, and how long shall we feel the effects of
operation in Serbia in 2012, we have fostered a COVID-19?
culture of flexibility, dedication and perseverance
in our teams, and it was important for us to N.V.: The COVID-19 pandemic has caused an
continue to engage the team when we rapidly went exceptional situation that we haven’t experienced
to WFH. We’re fully aware that everyone has before. We’re witnessing enormous negative
unique circumstances and challenges and that it’s effects on the entire society, politics and economy:
important to be flexible and accommodating. With the public sector, corporations and companies,
that said, all of our team leaders have the freedom SME, start-ups, etc. We are aware of the decreased
to organize their teams in a way, that every demand many companies are experiencing, or
employee gets the opportunity to take care of its some of them needing to rethink their supply chain
personal and family related needs during a regular structures, no matter whether in IT sector or
working day. The teams and their leaders have the overall.
freedom to organize their work in a way, they
believe is the best to meet the set tasks within the The key here is what we are learning during this
team itself and the shared tasks with other teams. period, and how we will implement these learnings
The feedback on this and above-mentioned in the future. Short-term, we all need to manage
measures is very positive, and we’re incredibly the crisis, as there is no other option. At the same
grateful for their continued focus and time, we have to set a path for the long-term to
entrepreneurial mindset. ensure future development.
SCI: Do you believe that this situation will This pandemic, though causing a global crisis
affect the way your company will operate in situation, is an event that allows us to recognize
the future? And if so, in which way? chances and opportunities for our business and
people. It helps us determine any area where we
N.V.: What we’ve learned so far is that the remote need to improve and to set the steps needed to
environment has been a positive transition for further increase the resilience of TeleSign for this
many of our team members. In addition, the and any future crisis.
productivity of the entire company has been
growing steadily. We believe that preparation is key, and the one big
learning for us is to regularly test our preparations
On the other hand, our employees are excited and in terms of business continuity. Regular BCP
eager to collaborate and connect live. I also testing shall prepare us for similar pandemics or
personally miss seeing everyone, but I’d be potential regional disasters in the future.
surprised if the entire team returns to working out
of the office five days a week as the norm.
www.stantonchase.com 18SCI: Do you expect a recession on the local, On the other hand, the shelter-in-place measures
regional or global level? have also led to a huge growth of business related
apps that are supporting communication, virtual
N.V.: The economic consequences of the meetings and collaboration, enabling many
pandemic are unfortunately already everywhere companies and their employees to continue to
around us visible: production restrictions or stops efficiently WFH.
due to fall in demand or supply chain
interruptions, negative effects on the working
population through short-time working or even
worse, unemployment, limitations in traveling
affecting tourism industry, but also overall
limitations in movement of goods. We can only
echo what other institutions are predicting, which
is a shrinking of economies worldwide from -1 to -
2.4% on average.
The IT sector seems to be hit less severely than
other industry sectors. For instance, on-demand
services have had in general a steady growth over
the last few years. Now, companies delivering
groceries and food, are growing extraordinarily
and are hiring additional employees to be able to
meet the rising demand for their services. But on-
demand platforms in the area of travel and
transport are facing volume declines due to
curfews or travel limitations implemented around
the world.
www.stantonchase.com 19Andrej Beslać
General Manager
Mlekoprodukt Zrenjanin
Part of Savencia Group
SCI: COVID-19 is an unprecedented ✓ Establishment of Crisis management team with
situation for any company. What did you do daily meetings
to protect your employees and the business ✓ Clear and intensive communication with all the
once the pandemic started? employees about the implemented measures
and the rules of conduct.
A.B.: Being the integral part of the Savencia
Group, Mlekoprodukt had some kind of In addition, we have implemented a number of
preparation for the emergence of COVID-19 measures to protect our business. We have
pandemic, as our branch in China was already continued buying all the milk from our primary
experiencing sanitary crisis at the time. producers, and have increased the production of
our key products so as to provide the smooth
The first preventive measure we took was to supply of retail stores due to the increased demand
increase the stock of protective equipment and at the onset of the pandemic.
disinfectants.
All these measures have enabled us to continue to
After the pandemic emerged in our country, we operate smoothly in the Serbian market and in the
have launched a series of activities to reduce the Balkans.
risk and suppress virus transmission:
SCI: Have you been surprised by the
✓ Mandatory body temperature measurement at reactions of your employees, either positive
the entrance into the factory and subsequent or negative?
personal disinfection
✓ Disinfection of wheels of all vehicles entering A.B.: The biggest surprise was the increased
the factory solidarity and enthusiasm we could see with all our
✓ Mandatory wearing of protective equipment in employees.
all production facilities as well as in warehouses
of finished products For example, colleagues tried to help each other
✓ Temporary isolation barriers at the spots in the when planning shifts, having in mind the living
production facilities where distance between circumstances of each employee (e.g. living with
employees is less than two meters elderly people, who are in the risk group).
✓ Work from home for all employees who do not Furthermore, the very process of shifting to work
need to be physically present in the company from home went really smoothly, the cooperation
✓ Preventive quarantine for the employees who and communication continued, regardless of the
came from COVID-19-struck regions or whose physical presence in the company.
family members returned from Western
European countries
www.stantonchase.com 20SCI: Do you believe that this situation will
affect the way your company will operate in
the future? And if so, in which way?
A.B.: I think that the current situation will bring
about significant changes in the world economy as
regards the general business procedures and the
general business thinking. For example, it has
turned out that we can sustain work processes
without major problems, with 15% of employees
working from home. I am also sure that the newly-
established measures will remain implemented for
a long time, such as precautionary measures
regarding health safety.
SCI: Do you expect a recession on the local,
We should not leave out the change in the regional or global level?
consumer behavior, which affects us greatly and
makes us adjust to that. I am quite sure that the A.B.: Although we as a country have all the
manner of consuming of our products will be prerequisites to go through the economic crisis less
different in the future. painfully than some Western European countries,
the companies which operate in Serbia but are
SCI: In your opinion, what will be the founded by foreign multinational companies shall
financial impact on the industry you work surely postpone the planned capital investments
in, and how long shall we feel the effects of and reduce consumption. Moreover, disturbances
COVID-19? happening in foreign markets – such as the
collapse of oil prices, milk and dairy products
A.B.: Although at the onset of the pandemic our prices, meat and meat products prices, will also
products were in high demand due to the impulse affect local Serbian producers.
buy triggered by the crisis, I think that recession
will hit all parts of the economy. Not to be too "gloomy" about the future, there are
also positive sides to this situation: for example,
Apart from having to maintain our business, we the return of 400.000 of our fellow citizens to their
must not forget that we are a branch that processes homeland, some of who will certainly make the
raw milk and that thousands of households selling decision to stay in Serbia and thus increase
raw milk on daily basis depend on our business, consumption and relieve the labor shortages we
which provides them the only constant income. It had registered before the crisis. In addition, it
is clear that the cattle breeding is one of the key seems that most of the nation will decide to spend
branches in our agriculture, partially because of vacations in Serbia, which means that the planned
the production of natural fertilizers and the funds will be spent in Serbia.
importance of drip irrigation. If our volume of
business decreases, raw milk surpluses shall
increase as we will not be able to take over the milk
– which altogether will have a medium-term effect
of reducing the livestock.
In addition, the recovery of the restaurant industry
and hotel industry is an extremely important factor
for our business. Finally, consumers are likely to
change their purchasing habits, so we will have to
adapt to their new expectations.
www.stantonchase.com 21Mirjana Lučić
General Manager for
Weber SRB, MNE and BIH
Saint Gobain Construction products Serbia
SCI: COVID-19 is an unprecedented ✓ We decided that employees who can carry out
situation for any company. What did you do work from home (home office) remain in the
to protect your employees and the business home office
once the pandemic started? ✓ All official trips abroad, as well as travels to the
countries of the region, were suspended
M.L.: As one of the world's leading industry ✓ We have clearly banned attendance at any fair,
groups operating in 68 countries and with more large presentation or meeting with customers
than 195,000 employees, Saint Gobain is fully for more than one person from the company.
committed to fighting the COVID-19 pandemic. ✓ We have established digital communication via
- Skype, Zoom, Microsoft team 365, Viber…
The key goal is the health of our employees and ✓ Masks (FFP2) as well as other protective
that our business is running at its best, without too equipment (gloves, disinfectants ...) are
much disruption to any segment of the business. distributed to all our employees
On the other hand - what can be delayed should be ✓ Business premises were disinfected at the
delayed to reduce the risk of Corona virus factories in Topola and Apatin, as well as at the
spreading. Belgrade headquarters
✓ Thermometers are provided for all external
Saint Gobain is one of the first companies to apply visitors to the factories to protect our employees
very strict rules to protect our employees. At the and keep the production process running
end of February 2020, the rules and smoothly
recommendations suggested by the Group, were ✓ Recommendation for regular washing of hands
applied and are still valid. with hydro-alcoholic solution
✓ Contact with external visitors - for example
Some of these rules, measures and truck drivers - forbidden handling, mandatory
recommendations are: holding of distance of 2 m, hand disinfection,
wearing a protective mask, and staying close to
✓ One employee has been nominated to the truck, with aim to minimize contact with our
coordinate all actions concerning security employees
measures related to COVID-19 in Saint-Gobain ✓ Other measures consistent with the Group's
Serbia, Bosnia and Herzegovina and internal recommendations.
Montenegro
✓ Daily keeping status reports of SGCP Serbia,
Bosnia and Herzegovina, Montenegro and
informing the Group
www.stantonchase.com 22SCI: Have you been surprised by the SCI: Do you believe that this situation will
reactions of your employees, either positive affect the way your company will operate in
or negative? the future? And if so, in which way?
M.L.: The company's strategy, We care, is all M.L.: In this different world, we must also
about taking care of people and their environment, continue with our digital transformation. We have
taking care of what's important to people, been moving in this direction at Saint-Gobain for
concerning long-term responsibility. All employees some time and will continue to improve things.
are regularly informed about the current situation
both at SGCP SRB and the situation in the country, And there will be no turning back. The same is true
as well as the next steps that will be taken to of telework, which has proven to be very effective
ensure in the best possible way our future and will certainly be partially maintained.
activities.
Information, sharing and cooperation are our great
I can proudly say that the employees of the strength and the three essential keys to any way
company, everyone in their field of work, have out of a crisis. The health and social situation are,
made the maximum contribution to make the of course, our first concern and certainly our
current situation as safe and as easy as possible to business sustainability and satisfaction of our
overcome. clients' interests.
In order to maintain a positive atmosphere for We used this period for additional employee
employees, we reminded all our employees of development (on-line training and workshops) and
positive things, teamwork, showed that the preparation for starting a regular business.
company cares about them, proved that they are
not alone in this and that we will overcome all the The incredible adaptability we have shown in
challenges together. We look and we all go record time gives me optimism.
forward, together.
A short video was made to see how everyone is
struggling from home with the challenges they
face. Video is made of all the materials that
employees sent.
www.stantonchase.com 23SCI: In your opinion, what will be the financial impact on the industry you work in, and how long shall we feel the effects of COVID-19? M.L.: The construction market will take some time to stabilize, that's for sure. Considering that construction in Serbia has been expanding in the last few years, it is realistic to expect large construction companies to recover quickly, while for small and medium-sized construction companies this period will certainly be longer. Many businesses will need government support to overcome business problems and use a package of economic measures. We expect the financial impact of COVID-19 to be no more than 15% on total turnover. SCI: Do you expect a recession on the local, regional or global level? M.L.: We keep track of what is happening in all markets where we are present. As the economies of Europe's most developed countries slow down, the effect will spill over to other countries. Since the interconnectivity of all economies and processes is great, the stabilization will depend on many factors. The aid measures announced should certainly contribute to the rapid and easy overcoming of this situation. The crisis will certainly cause many firms to reconsider their supply chains. Many companies will find new breads and opportunities to improve their processes and readily welcome a new cycle of activity. We listen to the market and, together with our customers, look at the needs of the market so as soon as the construction sector begins to work we can answer to all its needs. Everything in life passes and this will, and the way we behave in crisis situations will remain, so make sure you pay enough attention to everyone and have an understanding for your employees and your business partners. Take care of yourself and your loved ones! www.stantonchase.com 24
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