Many companies were not prepared to deal with crises of proportions such as the current COVID-19 pandemic and that is why we noticed many leaders acting in various ways to face it. It is a time when focusing on strategy is fundamental to your business, not only to survive the crisis, but also to its continuity in the future. Some of these strategies increase the capacity to evaluate and respond to new circumstances, some do not. Therefore, in addition to the perception of negative impacts, the crisis also expands the experience in generating opportunities for innovation and methods that add value to business.
At the present time, the priorities of most companies are: Evaluating backlogs and determining appropriate actions, resolving inherent project delays
to labor or other issues, protect the health and well-being of employees and carefully monitor the gross profits of current contracts. And many leaders already consider that the current scenario could bring positive effects, provided that their strategies and processes are reviewed, as well as the implementation of governance for crisis management and also investment planning in technology and cybersecurity.
For this reason, an important point that is being observed is how the current strategy may evolve to new demands. During a crisis, strategic objectives change, often radically. Shortening goal time can be a way out, or stipulate what actions must be taken to meet priorities, understand how your marketing processes and internal systems need to change, and what opportunities may be available at the moment. Without the notion of how circumstances change from day to day, short-term goals require agility.
Another important point is to create a team to analyze the new scenario and consider what are the best answers to the circumstances it has brought. This team needs solid management, focused on following each process and focusing on the logistics of the tasks. It's essential to record what worked and what didn't work while operating in a crisis to obtain an up-to-date crisis management strategy. Team members should focus on their areas. For example, in finance, ask yourself if projects are late or have closed, if payments are entering at a normal pace or slower. As for operations, know how the crisis is affecting the workflow, how the company is keeping its employees safe, and where new resources must be reallocated. As leadership makes decisions about reallocating resources, some functions may be focused on immediate need and others must focus on the long term.
In addition to the concern about the possible economic and financial impacts and the health safety of employees, another relevant topic is communication. Keep internal and external audiences adequately informed in times of crisis. Successfully exiting a crisis requires that strategic objectives and communications go together. Keeping good communication flowing helps everyone understand how important their contribution is to overcome the difficult moment and what their role is in the current strategy. During times of crisis, excessive communication is essential to maintain motivation and when it comes with credibility, consistent and unified, it establishes clear channels for questions and feedback.
Finally, leaders are also attentive to their role in the community, as every crisis that affects their business also affects their community. In this context, it is interesting to respond to changes in the external environment, finding solutions for your community or offering some type of support to your members.
It's hard to focus in the face of a crisis, but innovative companies tend to thrive in the midst of change and uncertainty. Crises are moments for resilient and transformative leaders.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax services, corporate finance, Financial Advisory, Risk Advisory, technology, business consulting and training. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
