Since the start of our confinement, not a day goes by without us receiving a wealth of advice…. Some of it very alarmist and negative, most of it very general, some of it useful because it’s concrete in terms of essential actions. Very little on simple, concrete aspects for company managers. Allow me, therefore, to share with you a suggested approach to the situation.
The “Helicopter” view is essential, along with a pragmatic view of the field. This agility is vital today.
1- You protect your Employees and Customers by
a. by giving clear instructions from reliable and consistent medical sources such as https://lecmg.fr/coronaclic/, and not from forums overly focused on “buzz” and emotion.
b. being transparent about the impact on the Company, on a weekly basis if necessary,
c. by encouraging internal initiatives and assisting in their implementation,
d. going beyond telephone/video conferences, which of course replace face-to-face
face-to-face meetings, by creating an Enterprise Instant Messaging group(“Whatsapp”, “Viber”, etc.) with the right people to mobilize everyone into action
action and convey information in real time. You thus immediately and concretely modify the reporting and/or internal information processes and cycles usually used.
2- You assess risk exposure (a sort of “stress-test”) in the event that the current situation persists (and in any case, the restart will be gradual and not rapid), particularly with regard to :
a. Liquidity and working capital requirements – how long can you go without
without activity, for example,
b. Sales and absorption of fixed and indirect costs,
c. Company IT security, a forgotten subject if ever there was one, but vital when it comes to
deploying telecommuting and video conferencing solutions…
d. …
3- You maintain production within the framework of an emergency plan (or continuity plan)
discussed by the management committee, as far as possible, in order to remain in action
stabilize operations (secured procurement, production, logistics, etc.) on the most profitable
profitable activities, to help my Customers, to defend the “top line” (sales).
4- Like a Formula 1 on the racetrack, you apply the brakes in the right places (and at the right time) on the short-term expenses you control (rationalizing recruitment, reducing opex, putting certain capex on hold) to conserve cash…
5- … and you accelerate on the “right” priority projects to be launched (or already launched) while avoiding dispersion, as it is during these periods of crisis that the most decisive choicesfor the company’s future. So you’re in offensive mode here, not defensive, and you’re still using instant messaging and other personal communications to give your colleagues the impetus to all align yourselves on these “right” projects, each steered by a leader:
a. Depending on your risk exposure (see §2), you build scenarios for now and for “after”, in particular with regard to your Customers (how to support them at the moment), with regard to your sales, which you need to sustain (without sacrificing prices) in relation to your core activities. You translate these scenarios immediately into a corporate emergency plan,
b. You assess the opportunities arising from changes in the behavior of your customers, markets and competitors, and evaluate their long-term impact, as well as the transformations needed to make the Company stronger,
c. You evaluate the actions to be taken, the resources to be allocated and the liquidity
between now and the end of 2020,
d. …
In all of the above, authenticity in the attitude, behavior and clarity of decisions of the CEO / DG will be key elements that will make the difference.
Continuity plans, contingency plans, revisions of strategic plans, scenarios, accelerations and brakes will be of no effect or help – indeed, they will be counter-productive and may even have a negative impact on the Company – without this fundamental notion for the leader, which is called Authentic Leadership.
We’ve never done our jobs in times like these. We therefore have the opportunity to demonstrate our boldness, our courage, our ability to react and build in turbulent times, to secure the future of our Company and our employees.
Doesn’t a plane always take off in the face of headwinds?
