Here are seven steps to lead your business through the CoroniaVirus crisis.
1) Update intelligence / Information
Events are unfolding with astounding speed, and the picture changes on a daily basis. Currently it is essential that you monitor the situation and update your team every 24 hours. Stay updated here
2) Beware of hype
Unfortunately News organizations often focus on what’s new rather than the big picture, and they sometimes don’t distinguish between hard facts, soft facts, and speculation. Another problem might be fake news, especially items circulating on social media.
As you absorb the latest news, think critically about the source of the information before acting on it.
3) Don’t assume that information creates informedness
In our connected world, employees have direct access to many sources of information. Leaders might reasonably conclude that there is so much information and commentary available externally that they don’t need to do anything additional. We have found, however, that creating and widely sharing a regularly updated summary of facts and implications is invaluable, so that time is not wasted debating what the facts are — or worse, making different assumptions about facts.
4) Update your understanding of what is happening constantly
Sun Tzu reminds us that great generals should issue commands in the morning and change them in the evening.
Unfortunately organizations are rarely so flexible. Managers often resist disseminating plans until they are completely sure, and then they are reluctant to change them for fear of looking indecisive or misinformed, or of creating confusion in the organization. A living document, with a time-stamped “best current view” is essential to learn and adapt in a rapidly changing situation.
5) A balanced response is essential
- Communications:
Employees, customers and suppliers will likely be exposed to conflicting information and feel anxious or confused about the best course of action. It is essential to communicate policies promptly, clearly, and in a balanced manner. Furthermore, communicate contextual information and the reasoning behind policies so that employees can deepen their own understanding and also take initiative in unanticipated situations, such as employee holidays in a restricted location or how to handle contractors.
- Employee needs:
- Restrictions on travel and congregation will trigger employee needs for access to education, health care, daily provisions and the like. You should anticipate and develop solutions to these and create an information hub where employees can find all the information they need. Many of these needs will be locally specific, requiring a multi-tiered approach to policy making.
- Travel: Make sure that travel policies are clear in terms of where employees can travel to, for what reasons, what authorizations are required and when the policy will be reviewed.
- Remote work: Be clear on your policies — where they apply, how they will work, and when they will be reviewed. Home working is rare in some geographies, like China for example, and the need for additional explanation should be anticipated.
- Supply-chain stabilization: Attempt to stabilize supply chains by using safety stocks, alternative sources, and working with suppliers to solve bottlenecks. Where rapid solutions are not possible, co-develop plans, put in place interim solutions, and communicate plans to all relevant stakeholders.
- Business tracking and forecasting: It’s likely that the crisis will create unpredictable fluctuations. Put in place rapid-reporting cycles so that you can understand how your business is being affected, where mitigation is required, and how quickly operations are recovering. A crisis doesn’t imply immunity from performance management, and sooner or later markets will judge which companies managed the challenge most effectively.
6) Prepare now for the next crisis
Covid-19 is not a one-off challenge. We should expect additional phases to the current epidemic and additional epidemics in the future Preparing for the next crisis (or the next phase of the current crisis) now is likely to be much more effective than an ad hoc, reactive response when the crisis actually hits.
7) Prepare for a changing world
We should expect that the Covid-19 crisis will change our businesses and society in important ways. It is likely to fuel areas like online shopping, online education, online events and public health investments, for example.
It is also likely to change how companies configure their supply chains and reinforce the trend away from dependence on few mega-factories.
When the urgent part of the crisis has been navigated, companies should consider what this crisis changes and what they’ve learned so they can reflect them in their plans.
Strategic cash flow management is also of paramount importance in this changing world. “ A bird in the hand is worth more than two in the bush” is now more relevant than ever.
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