During the Corona crisis, the health of employees and further stakeholders has the highest priority. Once this priority is ensured, business leaders must think ahead to ensure short- and long-term health of the company. Through our experience in supporting clients during previous events like the financial crisis or SARS, we know the success factors to recover fast from an economic shock.
How Business Leaders should manage the Corona Impact
It is important to set clear priorities based on three crisis response phases most companies will go through. The phases and included priorities will give orientation to answer the key question: Which actions need to be taken now, which actions can be postponed? Each phase comes with specific challenges and objectives:
(1) Organize survival mode: Ensure ability to act – Guarantee employee health and capability to continue operations as well as liquidity
(2) Stabilize the business: Continue operations – Secure results, strengthen supply chain and establish new ways of working
(3) Reset the course: Get fit for the future – Realign business and operating model, competencies and use business opportunities
Right now, most companies are in the phase "Organize survival mode". Macro-economic developments, industry background but also successful management of this phase lays the foundation for moving on to the next phases.
Our comprehensive framework is key to ensure sustainable business operations
Depending on the phase in which you see your organization right now, different levers are required. These levers cover eight dimensions which are critical for success: Governance, Finance, Supply Chain & Procurement, Operating Model, Customer, Employee, IT Management & Infrastructure and Communication. Our experience shows, it is crucial to apply a holistic approach to ensure business operations and overcome the crisis in a sustainable way.
In these times, in addition to our framework, people, expertise, experience and trusting cooperation at the same level are important. Our industry and functional experts make the difference here. Please feel free to contact us.
Dr. Ralf Sauter