Anti-crisis recommendations

At any given moment, top management and owners run two companies: the business they are in now and the business their company is becoming. During times of crisis, it is common to forget about this second company. Maintaining a focus on the longer-term horizon is essential to properly capitalize on the opportunities that arise during times of crisis. There are three main topics that you can focus your efforts on. These are your customers, your staff, and your finances and operations. Below are recommendations on how a management team can do this.

The loyalty shown to customers in times of crisis is highly appreciated and can bear fruit in the future. It demonstrates that the company and the clients are in the same boat. You can create value for customers in the following ways:

Provide free consulting on anti-crisis measures in topics where you are an expert, and develop anti-crisis plans with your clients.

CUSTOMER SUPPORT

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Become a moderator and center of expertise for industries/client groups: hold webinars, and send mailouts to clients on current topics.

At an accelerating pace, develop and proactively offer customers products and services that will help them generate additional revenue, reduce costs, or improve operational sustainability. This is an initiative where speed matters.

For ongoing projects, allow for dialogs to see if those projects are still relevant and identify any opportunities to pivot. Provide human support to the members of the client's team.

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– Provide free consulting on anti-crisis

measures in topics where you are an expert, and develop anti-crisis plans with your clients.

– Become a moderator and center of expertise

for industries/client groups: hold webinars, and send mailouts to clients on current topics.

– At an accelerating pace, develop and

proactively offer customers products and services that will help them generate additional revenue, reduce costs, or improve operational sustainability. This is an initiative where speed matters.

– For ongoing projects, allow for dialogs to see

if those projects are still relevant and identify any opportunities to pivot. Provide human support to the members of the client's team.

Times of crisis can also be difficult for your staff. Below are examples of initiatives that can help keep them productive and engaged:

Remove personal stress and fears through regular communications at different levels. Beyond company-wide town hall meetings, this should include 1-1 brief conversation with each employee down the structural hierarchy.

STAFF SUPPORT

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Provide employees with new work tools if the former ones no longer work.

Predict the expected workload of your employees for the year ahead. In an expected decline due to the loss of customers or a decrease in sales, offer employees attractive conditions for additional leave (for example, partially paid sabbaticals for several months). You can also find alternative tasks for employees so that they can continue to add value.

Maintain morale by encouraging employees to take regular paid vacations. This will help you manage the potential workload spike that will inevitably occur when the business recovers.

Do not forget to support the company's management team. Often, executives are so busy saving the company and helping employees 24/7 that they forget about their own mental health. It is essential to take steps to relieve managers periodically to prevent burnout.

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– Remove personal stress and fears through

– Provide employees with new work tools if

regular communications at different levels. Beyond company-wide town hall meetings, this should include 1-1 brief conversation with each employee down the structural hierarchy.

the former ones no longer work.

employees for the year ahead. In an expected decline due to the loss of customers or a decrease in sales, offer employees attractive conditions for additional leave (for example, partially paid sabbaticals for several months). You can also find alternative tasks for employees so that they can continue to add value.

– Predict the expected workload of your

– Maintain morale by encouraging employees

to take regular paid vacations. This will help you manage the potential workload spike that will inevitably occur when the business recovers.

– Do not forget to support the company's

management team. Often, executives are so busy saving the company and helping employees 24/7 that they forget about their own mental health. It is essential to take steps to relieve managers periodically to prevent burnout.

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From a financial point of view, it is necessary to critically reassess and adjust the plan for the current year and maintain strict liquidity control:

Readjust the revenue forecast to a more conservative one, suggest replacement sources of revenue, and adjust sales KPIs.

ENSURE FINANCIAL AND OPERATIONAL SUSTAINABILITY

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Reduce variable costs as much as is reasonable. Cut access to irrelevant expenses (including putting limits on corporate cards), and communicate new expense policies to employees.

Renegotiate to reduce fixed costs (for example, office rent).

Consider the possibility of converting a part of your fixed costs into variable costs (see the example above with employee sabbaticals).

Now is an excellent opportunity to “cut the fat” – the policies introduced during the crisis can remain valid in the long run.

Manage liquidity. Tightly control accounts payable and receivable.

Postpone investments and capital expenditures whenever possible.

Track legislative changes related to your financial stability and evaluate their impact on your business and clients. Hedge risks with financial instruments.

If the liquidity forecast is unfavorable, consider restructuring measures.

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