Crisis Mitigation Management during COVID-19
The world is facing the biggest pandemic since the Spanish Flu more than 100 years ago. With no exception, companies worldwide are facing unprecedented and challenging times! Volatility reigns in the stock markets. Majors indexes fell by more than 30% in a matter of days. Across the globe, businesses considered non-essential are closed for an undetermined time. Massive layoffs are taking place. Historical government stimulus packages are being prepared to mitigate the economic repercussion of this global pandemic.
Caught up in the eye of the storm, companies also need mitigation plans to maintain some degree of business and to prepare for the Day After.
To navigate through this crisis, companies need to consider the following 5 principles:
1. Health First
Stay up to date with official recommendations and latest data to effectively communicate simple guidelines and instruct employees about hygiene, social distancing, best practices, mandatory PPEs and what they need to do in case of potential infection. Work remotely when possible. Check-in regularly with employees.
2. Step Back & Make a Plan
Take a long, deep breath – this it is not the end of the world. Stay calm and think it over before acting. Lay out a short and medium action plans to mitigate the impacts of the crisis. Involve and engage people in the process.
3. Set up virtual War Rooms
Companies need to and must adapt rapidly to daily developments. We recommend Short Interval Control management to concentrate efforts on core activities. War Rooms, frequent meetings and effective decision-making allow rapid progress with the available resources. More importantly it also allows to focus on costs, revenue and profitability while prioritizing crucial operations to the business.
4. Step Up as a Leader
Act like Winston Churchill during the Second World War. In times of uncertainty and fear, people look for leaders who can give them hope and show the path to the end of the tunnel. Transparent and fact-based communication loops are a must. Don’t be afraid of being emotional – this is normal! Support and be empathetic towards your people.
5. Prepare for the Day After
Think ahead and get ready for the future. Companies will want to ramp up rapidly to previous levels of performance. Because of the global disruption in supply chains, there is a need for a bold Day After Road Map incorporating lessons learned and certain new context after the crisis.
At Magellan Consulting Group, we have a great deal of expertise in helping companies mitigating crisis and prepare the Day After. Thanks to that expertise, we design strong customized turnaround programs to rebound and improve profitability.
The bottom line is that companies’ ability to adapt rapidly will be critical. In some cases, this will determine whether they stay in business or not! It is also crucial to bear in mind that crises are opportunities to get better!