Crisis ManagementCovid-19 – Mastering the crisis
and coming back better

The pandemic is affecting authorities and companies at very versatile levels. In addition to the measurable challenges on the cost and sales side, there is the obvious uncertainty, which makes strategic planning difficult and forces decision-makers to navigate largely “on sight”. And yet the course for future business success is being set right now. Anyone following the current global rate of COVID-19 infections has to assume that the pandemic and its effects will be with us for the foreseeable future.

Despite the increasingly positive reports of success in vaccination research and rollout, plenty of questions remain unanswered. Among other things, these relate to the reliability and sustainability of both the research and vaccines, as well as when the vaccines will finally be widely available. In addition, the big question of “if” the pandemic will permanently change our lives has been answered – and gradually evolved into the question of “how”. As a result, it will not be enough for decision-makers to try and successfully steer their company through the pandemic “on sight”. For sustainable business success, what matters is how well you have adapted your company to the changes brought about by Covid-19.

HAn external view often helps: It can block out emotions and sensitivities, and provide the necessary focus and structure to start facing the changes both objectively and comprehensively. In this context, the word comprehensive means that the measures of the mitigation strategy must have the right balance with regards to reducing costs and efficiency (exploit), while also restoring sales and ensuring growth (explore). In addition to the immediate mitigation of the most urgent challenges to secure business operations, it is also important to identify and effectively operationalize upcoming opportunities. The typical tasks and fields of action are as follows:

1. Internal analysis analysis of the relevant cost structures and drivers as well as the operational and organizational risks associated with Covid-19
2. Cost reduction, especially related to indirect material costs, but also to IT and project costs. To do this, we analyze the relevant cost structures for possible saving potentials and develop the required ad-hoc and mid-term measures. The aim is to secure the operative business and to create financial flexibility for any investments needed in times of economic recovery.
3. “Agilization” of cost and delivery structures, i.e. definition and initiation of measures to adapt the cost and delivery structures to the general conditions of the pandemic (example: their geographical variability in terms of production reliability and demand behavior, as well as increased dynamism in customer needs). This can include the fail-safe and reliable design of supply chains for crisis-proof products (e.g. through insourcing), the variability of costs and supply chains (e.g. through outsourcing or multisourcing) for other products, or process improvements in the area of product and portfolio management to optimize the time-to-market of new or modified products.
4. External analysis of the competitive situation and customer demands to identify possible business risks as well as new or changed product needs, and alignment of the own product portfolio to the market.
5. Performance improvement, i.e. identification and initiation of measures to sustainably improve the company’s competitiveness. Despite a difficult financial situation, it can make sense to invest in increasing one’s own digital capabilities, e.g. by optimizing and automating core operating processes. According to the current COVID-19 Business Impact Survey by the consulting firm Tata Consultancy Services (TCS), over 90% of executives surveyed at large companies in Europe, North America and Asia stated that they had either maintained or increased their investments in the digital transformation of their companies despite massive losses in revenues.

As you can see, the necessary measures relate equally to aspects from classic management and strategy consulting, as well as restructuring, turnaround and (digital) transformation consulting, while a deeper technological competence can become necessary during technical optimizations.

Our broad range of experience helps us to fully understand your complex situation; to individually derive the necessary measures as part of a comprehensive mitigation strategy; and to coordinate them optimally. And it goes without sayiny that we would also be happy to support you in the subsequent implementation of these measures. Contact us.