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Crisis Management

Crisis Management during and after COVID-19 pandemic

The coronavirus (COVID 19) pandemic has made the crisis management an important part of every leaders arsenal. 

Low-Probability High-Consequence events are unexpected events that can not be foreseen and we have little historical similarities. However, they do happen, and their impact is extreme (high consequence). As there are only a few events available to learn from, it is

  • close to impossible to understand by a single person,
  • difficult to undestand by a stand-alone company or organization

This is because we do not have enough facts, or learning opportunities to design the decision making process and risk mitigation procedures, and properly address the hazards.However, there are similarities and common principles hot to manage companies in crisis situation and how to lead them through radical changes.

The current global crisis caused by the COVID-19 virus is an exceptional situation, not previously seen in our lifetimes. To cope with this, the approaches and measures tested in the past may not be enough and CEOs are faced with the need to act quickly and proactively to manage a time of great instability and uncertainty. The temptation to ‘wait and see’ is very high, but it may not be the right choice.

At the moment it is impossible to predict the impact on consumption and customer behaviour, the reaction of the capital markets, how long it will take to return to a ‘normal’ situation and indeed what the ‘new normal’ might look like. Ultimately, we do not know what the final impact of this crisis will be on international and local economies, on production/supply chains, and on the different business sectors.

However, we can currently foresee certain consequences on the following areas:

  • people, their health and safety, new work patterns and the social impact of the epidemic
  • revenues, the slowdown in deal closing times and the uncertainty of sales and customer portfolios
  • the liquidity and availability of resources and fundraising for investment in a recession scenario
  • the efficiency and continuity of supply and delivery chains
  • the operational costs, increased breakeven points and the need to do more with less, improving, where possible, the productivity of resources.

However, we can currently foresee certain consequences on the following areas:

  • people, their health and safety, new work patterns and the social impact of the epidemic

  • revenues, the slowdown in deal closing times and the uncertainty of sales and customer portfolios

  • the liquidity and availability of resources and fundraising for investment in a recession scenario

  • the efficiency and continuity of supply and delivery chains

  • the operational costs, increased breakeven points and the need to do more with less, improving, where possible, the productivity of resources.

This is an emergency situation and we must act with speed and focus, combined with the ability to redefine normal corporate hierarchies and responsibilities. Tasks and roles not previously experienced must be assigned and decision-making processes must be reconfigured on agendas with common extraordinary objectives.

We therefore need a ‘crisis room’ that basically produces 3 results:

  • mobilisation of the leadership team on common objectives and continuous call to action both for the period of the crisis and for the period immediately following

  • development and modelling of scenarios to anticipate the different consequences on the impacted areas and the preparation of reaction plans in readiness for action

  • accurate and reassuring communication to all stakeholders (inside and outside the company).

Who are the most experienced managers capable of dealing with this type of problem?

Those who have proven and successful experience in corporate crisis management.

EIM has extensive experience in managing exceptional situations, and in project methodology and management.  EIM’s experts are skilled in management in times of crisis and are available to bring their skills to your company.

In this extraordinary situation, they are also able to:

  • tap into best practices
  • anticipate the actions of the authorities
  • ensure continuity
  • protect employee health – not in a generic-reactive way but a proactive way
  • get ready for the aftermath to restart business when all this is over
  • capitalise on the experience and make it something permanent and lasting in the company’s arsenal to face future new and unexpected situations.

Turn this crisis into an opportunity: let’s talk about it together. 

Over 30 years of experience supporting companies through change, with experts in Crisis Management, in the UK and worldwide.