Five strategies for businesses to deal with
high market uncertainty caused by COVID-19
With current levels of uncertainty and anxiety in global markets due to the Coronavirus (COVID-19) it’s very difficult to work out what to do first to ensure the continuity of businesses and livelihoods.
Most businesses globally were already very change fatigued, many having already been impacted by severe events, so another layer of stress has forced many to make rapid, tough decisions. Business leaders are asking themselves:
- How severe will the impact of current events be?
- Will we be safe?
- When will it be resolved and all return to normal?
- What strategies do we need to implement now and into the future?
- What are the trigger points for these strategies?
- What should we do first?
Five key strategies we feel businesses need to focus on during these challenging times are:
Put in place a disaster scenario plan
Ensure you go through a scenario planning process as soon as possible to highlight what could happen in low (already there for many businesses), medium and high severity scenarios. Identify the market trigger points and appropriate strategies to implement under each of these scenarios.
Be alert but not alarmed
Panicking will not help you, your team, your customers or your business. While decisive actions need to be taken, taking them too early or too late can have negative consequences. Check insurance policies, discuss supply chain options, adapt cash-flow projections, review leave policies, check if future meetings can be taken remotely, explore unnecessary travel reduction options to certain destinations, check the ability with your IT team to allow your team to work from home if required.
Staying alert, listening to trusted media commentators and government bodies will guide thinking and be ready to make those tough decisions quickly when and if required.
Continue open, authentic discussions
Continue regular dialogue with your team, supply chain and customers about actions you are taking to mitigate risks and adapt to the ever-changing conditions. The narrative and severity will change weekly, if not daily, so regular discussion and updates are critical.
Be on the ‘offence’ not ‘defense’ for business continuity
Start taking proactive action for business continuity (if you’ve not so done already) by being on the offence not the defense. Pulling the covers up to ride out the storm is not an effective strategy to instil confidence in those around you. Measured decisions need to be taken. Are you on the front foot with your team, helping your customers and explaining strategies to your supply chain? It could be there are also growth ‘opportunities’ which require you to grab hold of quickly.
Get ready for the uplift in market demand again
As with all severe global events they do eventually clear, and while the disruption left behind can have a lasting impact, business does return to normal. Ensure in your planning you are ready to capitalise on the opportunities that will present themselves as business returns to normal whether that be that a couple of month or longer.
Mindshop is supporting its member firms with advisory tools, strategies, webinars, coaching and more during this time to ensure all are on the front foot to work through these challenging times and thrive in the months ahead when all is resolved.
