Unexpected changes in the market or in the economy is the best reason to analyze the main components of a business. It’s time to save and optimize. It is time to set the right priorities and set realistic goals. Time of short-term and scenario planning to get a sense of the controllability of an uncontrolled process.
During this period companies have even more risks than usual, including: incorrect assessment of the current situation, or too negative, or too positive, untimely managerial decisions, when delayed or were too hasty, lack of concentration on key components when trying to run immediately in all directions simultaneously and extinguish all fires around.
New circumstances in the market are a chance for a quality reboot. Now it is important to start by analyzing existing customer bases or to understand the circumstances of potential customers, then you can understand what changes will add value to your market proposal. In addition, the technical and financial abilities of making such changes and the timing of their implementation should be analyzed.
Properly experienced complexities always provide the basis for improving the components of a business. Coming out of a difficult situation and making the right conclusions, the company and its employees become more prepared for the new challenges that are definitely waiting for us in the market.
Crisis is a good time to work out each of the components and here’s what to do:
1. Short-term planning. Use short-term planning and scenario analysis. Prepare the Company’s organizational structure for rapid and effective change in accordance with the decisions taken. Think of a solution in case of different situation development.
2. Human resources. Analyze the need for human resources, potential workload, payroll and work organization in the changed environment, and think about delegation and control features.
3. Cost optimization. Identify the most significant types of expenses and take steps to optimize them. Priority areas must be selected and resources redistributed. For example, in a situation where the potential cost of improving the relevance of a market proposal requires some additional investment.
4. Flexibility in decision making. Prepare a plan to improve your company’s core business processes. Introduce simplifications and accelerations that increase the flexibility and readiness of the structure for continuous change.
5. Communication plan. Prepare an external and internal communications plan. What at this time you will tell the market and how you want to be remembered, as well as what your employees need to know in order for all your plans to be executed with a high percentage of probability.
After the turbulent situation is over, draw conclusions and spread knowledge about the lesson learned. After that, every employee of the company will understand, and will be able to tell what the company learned during the crisis.
In these difficult times, the positive is that you have the opportunity to improve the principles of the company operating and this is a great plus for future challenges. The main thing is to understand that living from crisis to crisis is very dangerous. It is better to live life in the face of constant changes. Every new day is an occasion to improve something, and this is one of the main tasks of each employee.
After passing the hard way, the company will gain useful skills:
• experienced and knowledgeable leadership style;
• thoughtful and up-to-date proposals for ever-changing markets;
• flexible organizational structure;
• efficient and quality business processes;
• required optimal staff composition with appropriate characteristics;
• a working system of continuous improvement and knowledge management in the Company;
• willingness to use different types of communication.
Waiting doesn’t mean inaction
At this stage there are several options for further development of the situation in the world. In a more optimistic way, the epidemic will peak and decline by mid-year. It can then be expected that the results for the year will be slightly different from previous figures. If the situation delays, then, of course, the forecasts will not be so favorable.
Waiting for most businesses is now the surest option. But, this does not mean inactivity, it means that you have the time that can be devoted to improving the vitality and sustainability of all the major components of the business.