CEOs must assure that the end of this crisis will result in a stronger, resilient company.
As fear over the coronavirus and its impact on the global economy, CEOs already are making amendments to their annual planning. Looking into Q2, here are nine questions CEOs should be asking themselves.
- What shape will this crisis take?
There is plenty of uncertainty about this pace and nature of this crisis and recovery. A steady recovery of 1-2 quarters would pose very different challenges from an slip into recession. What weight are you giving the possibility of currency swing, trade difficulty, unemployment rise? CEOs must help their leadership understand what is the new normal they should adjust to.
- Is it time to restructure?
Turmoil conditions make it easier to implement unpopular changes. You may have more leverage over suppliers and some clients and employees understand the need for change.
- Do you have a shortlist of acquisition targets?
As the crisis takes hold some assets might become available for the taking for lucrative prices. Companies that wait for the recovery before an acquisition, may find they missed the train.
- How can we strengthen our partnerships?
Partnership can be an amazing growth engine in uncertain times. Can you form a true partnership, one that creates a clear 1+1=3?
- Should you divest parts of your business?
Look at your business as a portfolio and assess what operation is fundamental for the business and what can be sold to free up needed capital to weather the storm.
- What are the risks of this crisis for your business?
Some risks are predictable yet may be fundamental to your ability to grow. For example, do you understand your exposure to sectors that may be disproportionally impacted (hospitality, airline, finance etc.)? How will your clients, distributors or suppliers be affected by this crisis?
- Is your board behind your resilience strategy?
Too many companies find themselves on a waiting pattern that eventually forcing them to make quick and sometime painful actions. Once there’s a clear and coherent plan in place, you will be able to answer difficult questions from your board or investors.