As CEOs and executives struggle to deal with the fallout from Covid-19, companies should step back and carefully assess their business before making any radical decisions about their future.
Whether a company will survive in times of uncertainty – and is positioned for growth on the other side – will largely depend on how CEOs and executives lead now.
We’re all dealing with unprecedented uncertainty. And, while it’s impossible to predict which companies will make it through all this, there are things you can do to increase your odds.
1. Balance dollars with sense
Look at your accounts and project your cashflow over the next few months – do you need to collect receivables or delay expenditures? Are you in a position to lend your business personal funds? Can you ask some of your employees to take vacation days now or drop down to 80 per cent, if necessary? Remember, there are also government grants available, so check these too. If there’s still a shortfall, go to the bank to discuss a loan.
2. Double down on your winners
Not every company will do it tough this year – if you produce products such as hand sanitisers, soaps, toilet paper, or ventilators, you may have your best year ever. Study which of your products or services have been selling and focus your efforts on those. If you identify the customers who have been buying these, you can also target your marketing.
3. Think laterally
Find out what people are buying and look for openings – can you make the straps that secure facemasks or key components in ventilators? If so, let the manufacturers know your capabilities, or alternatively, make the product yourself. If manufacturers need the product in a different way, look for alternatives, Now is the time to be flexible and adaptable.
4. Look critically at your company
“Strong eye” your company, people and products as if you were an outside investor. Are there any gaps, oversights or weak spots? Ask your employees to help scan, as these are the people in the ground, in the thick of it. What can you do better, more efficiently? Where are the double-ups? Be open and ready to listen, then take action. Also, think about what changes you, as the leader, may need to make.
5. Have the courage, brains and heart to lead
It’s not easy to lead through chaos at this velocity of change. It takes brains to analyse and develop strategies to keep the company alive. It takes courage to stop doing what used to work and move into unchartered territory. And without question, it takes heart.
Empathise with your employees who are worried about their jobs and their futures and remember to provide them with frequent updates – the good, the bad, and the ugly. Weed out any misfits, or non-performers, and do everything you can to keep your great people on board; you will need them to help you grow once we’re on the other side.
This is a time for smart decisions. The leadership that is shown now, the culture that follows and the decisions that are made will path the way for the future.
Author: Professor Jana Matthews, Business Growth Expert, UniSA
This article first appeared on Inside Small Business, a sibling website to Inside Franchise Business.
