Immediate, vigorous, never-before-imagined responses must be taken by CEOs to manage the effects of the Covid-19 outbreak on their businesses.
In the new world that has been thrust upon us by the Coronavirus, people must come first. Always. Everyone everywhere must take care of each other, whether family, friends, employees, neighbours or strangers. For many, including healthcare workers across the globe, this means caring for the sick directly and daily.
For CEOs, it is essential to take care of your employees and customers. The Covid 19 pandemic is a clear reminder that it is the employees and the customers who are the lifeblood of any business, and no business would make it through a major crisis like we are now facing without the efforts of their employees and the loyalty of their customers. As a CEO, it is your job to do everything you can to take care of your staff and your customers.
CEO Consult cannot emphasise the importance of placing the welfare of people at the core of everything you do as a CEO, particularly now. That is why the tactics outlined below put people at the centre, as staff and customers are the basis of any business revenues. We understand that for many businesses, revenues are decreasing if not temporarily drying up. But just remember that to help your revenues now is to help the people who make them possible. Whatever you do, ensure you are building trust and loyalty with both your employees and your customers now, as that is how you will emerge stronger on the other side of this crisis—and there is an ‘other side’.
Finally, CEO Consult cannot emphasise how important it is for CEOs to take the time now to explore never-before-imagined possibilities for how your business might look on the other side of this pandemic. How will this crisis have changed your employees and customers (and it will!) and how will your company be able to best respond to meet their new needs?
The current context
– The major disruption for all countries is not so much the virus, but the actions that must be taken to slow its spread and attempt to contain it, i.e., flattening the curve.
– Countries, businesses and individuals must all be prepared for the worst. A ‘wait and see’ approach is not a (wise) option.
– Severe revenue disruption may very well (if it hasn’t already) cause a liquidity crisis for your business.
– For most businesses, recovery is likely to take time. This means many quarters of reduced revenue.
– Your employees and customers may be feeling different levels of fear or panic.
– Some customer behaviours will change permanently and will accelerate previous trends.
– Now is the time to contemplate a range of never-before-imagined possible actions that may just save your business.
Tactics
Many have likened the Coronavirus battle—both for our health and the economy—to a war. Using this metaphor, CEO Consult presents some key tactics that CEOs can immediately deploy to weaken the enemy and emerge from the battle stronger.
Do not wait: if you have not done so already, the following three actions should be put in place now. No matter what size your business is, these actions will serve you well if done now:
1. Ensure your senior team works as one:
– No matter how large or small your business, everyone at the senior level must be aware of the full severity of the pandemic situation and understand the worst-case financial scenarios.
– The team must see—and act upon—safety as the absolute #1 priority.
– The top financial stance must be conservation of cash and liquidity.
– There is no room on any senior team for a ‘wait and see’ perspective, as this could damage the company irreparably.
2. Establish a dedicated Covid-19 response team
– Larger businesses should set up a senior team from across the disciplines (ops, sales, HR, finance) to focus exclusively on strategies to overcome Coronavirus impacts on the business; smaller businesses should do the same on a smaller scale.
– Major workstreams must be prioritised and put into action using an Agile approach to highlight daily progress.
– Forget any regular reporting and updating processes and cycles. Employ a model that does what is needed now, such as keeping everyone informed with daily, informal CEO updates.
– Use a tracking tool so everyone can see progress.
3. Develop well-informed contingency plans
– Outline specific macro Covid-19 scenarios.
– Determine how those scenarios will affect revenue and disrupt operations (i.e., build micro scenarios).
– Start outlining actions to reduce impact.
– Begin acting now.
With your Covid-19 response team in place, create a plan that is set out in stages to cover at least 6 weeks, and keep revising as information is gathered and extending as needed.
