Business planning in a crisis

Organisations that emerge stronger after economic hardship are not those that cut costs faster and more severely. In order to emerge stronger, revisit strategic priorities, identify variation in the business offering and operating model and bring your team of people with you on the journey of establishing a new way of thinking and doing things.

Business owners were already faced with the challenge of managing costs before the COVID-19 pandemic. Some of the world’s largest economies have gone into lockdown and many nations have had to deal with state of emergency restrictions. In a time of uncertainty and when optimism for a quick recovery has disappeared, we are now left with the problem of planning for future that is undefinted and key factors are still unknow.

The actions you take now to protect your business are critical for its future success. Strategic priorities, organisational redesign, and new ways of operating are all factors that need to be considered as companies balance cost-cutting with reinvestments for growth. Here are three actions that can help cut the right costs in the right ways and help your business emerge stronger :

1. Revisit strategic priorities focusing on the core capabilities that differentiate your company in the market to divert costs to the right growth initiatives.

2. Look for what’s different in your business and baseline your cost model to support the business offering.

3. Bring your team on the journey with you of establishing a new way of thinking and doing things.

To implement a successful business transformation, you need to take a holistic and differentiated approach across four dimensions :

·       Develop a clear strategy and implementation plan

·         Capitalise on differentiating capabilities

·         Baseline your cost model

·         Redesign your operating model