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Five Strategies to Plan for the Business Crisis

More than two years after the Covid-19 pandemic pandemic, many businesses seem to be finally beginning to see light (or at least more light) at the end of the tunnel. Many of them faced a business crisis and somehow survived.

At the same time, health authorities are already ahead of the next pandemic because it can happen whenever the next pandemic can occur.

As Matthew Baylis, a professor at the University of Liverpool and director of the city’s new Pandemic Institute, told the Financial Times, in preparation It means “expect and plan exactly what you expect.”

Five Strategies for Creating a Business Crisis Plan

As the founder of the online form business, I was fortunate enough to have a business that could easily adapt to many of the pandemic-related work changes, such as telecommuting and the proliferation of online retail. Still, I wouldn’t have been prepared for the effects of a pandemic, and I wasn’t the only one.

According to a 2020 survey, only 12% of companies reported feeling ready for the effects of the coronavirus pandemic.

Here are five expert-assisted strategies for creating a business crisis plan to prepare yourself and your business. Resilience building Whatever the future is.

1. Rethink the way of thinking

It’s hard not to think of the Covid-19 pandemic as anomalous, a business disruption as usual. Some shock and disappointment are unavoidable, but considering a crisis as anomalous can also impair the ability to adapt and move forward.

why?

What if this doesn’t happen because there is a risk of getting caught up in what-if? What if you did something else instead of focusing on “what now”?

Harvard Business Review Change of thinking To help your company become more resilient:

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“Crisis is not a rare one-off event protected from ad hoc, but an inevitable disruption to preparing, managing and leveraging competitive opportunities. Such changes are a crisis for organizations. Helps to make positive and future-oriented decisions in the event of a successful and shaped post-crisis situation. “

Like accounting, annual employee evictions, or other routine business operations, crisis planning can be part of regularly scheduled programming.

2. Create a communication strategy (or various strategies) in advance

When a crisis inevitably occurs, your top priority as a leader is to ensure that your business can handle things for your employees and customers.

One of the important rules of thumb: Creation Communication strategy (Or multiple strategies) in advance. Receive it from an agricultural expert who is familiar with regular planning of crises such as natural disasters that wipe out the entire crop.

Jim Schweigert, President of the Gro Alliance, told SeedWorld:

“When a crisis strikes, we don’t start critical communication. It really should be part of your business planning strategy from day one.”

At the Gro Alliance, Schweigert and his team carry out an exercise called scenario planning. During the annual management meeting:

“He and his team discuss what happens if the industry goes in a particular direction, so we plan to address each scenario, including task leaders for employees, clients, and suppliers. I can do it.”

The management team will take the time to walk through the various crisis scenarios and select recurring events that will outline their communication plans.

3. Consider appointing Chief Security Officer

Juliette Kayyem, a contributor to the Harvard Business Review, has spent years training and advising companies on disaster management. She states that positioning a key security role within an organization is an important part of preparing for a crisis.

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Many companies, especially start-ups, have recently created an external security team (such as a “trust advisory board”), but Kayyem recommends appointing security leaders as a permanent and prominent part of the organization. doing.

After the 9/11 terrorist attack, Kayyem said that many companies hired chief security officers, and then the role of other Cs, such as chief information security officers, and more recently chief medical or health officers, surged. I am writing.

“All of these C roles focus on different threats, but the leader’s response is basically the same whether it’s an active shooter, an earthquake, a cyber breach, or a virus. And lead the company with minimal impact. “

A single role is needed to oversee all these efforts.

If the Chief Security Officer role does not yet exist, creating it is an effective way to reassure your customers. Use GitHub: Last year, when we hired our first Chief Security Officer, Mike Hanley, we published a blog post about GitHub to inform the world of this important security step.

Hanley said: “We work with teams and communities to ensure that GitHub continues to lead as the most trusted home for developers, ecosystems, and teams to come together and create.”

All important stakeholders, such as users, employees and partners, will feel more confident to know that the company is actively protected even before a crisis occurs.

4. Push yourself to think in the long run

A crisis will occur. For example, a virus that stops the whole world, including business. What now?

Your first intuition may be to enter triage mode and focus all your efforts on stopping bleeding. However, while counterintuitive and seemingly rewarding, focusing on long-term outcomes rather than short-term solutions is the key to surviving the crisis.

Jotform continued to develop new features and apps that would be useful to existing and future users in the long run. For example, we released the StoreBuilder app because we realized that one-third of apps created with Jotform already contained a payment form.

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Or take up Henrik Ekelund, founder and CEO of BTS Group in Sweden. In 2020, Ekelund knew that his company, a global consultant for face-to-face workshops, would be hit hard. His strategy for overcoming the crisis may have been somewhat frowned upon.

As he told the World Economic Forum:

“We promised to continue to hire 100% of our 1,200 employees without payroll cuts. We’ve turned our business digitally, switched sales strategies, and deferred dividends, bonuses, and loans. I have secured my cash. “

You’re probably wondering: what was the result?

Initially, it lost 70% of its revenue, according to Ekelund, but 2021 is a new record year with a 20% increase in revenue and profits compared to 2019.

Long-term thinking In times of crisis, you can not only increase your company’s resilience, but also make it more profitable than ever.

5. Improve social resilience

During the pandemic, viruses weren’t the only major force affecting the business. The other was the rise of the social justice movement.

As I wrote earlier, we live in turbulent times. Many people are determined to make the world a better place. As a business owner, we need to anticipate this kind of activity. You can also do it to support it.

The author of the Harvard Business Review explains:

“work [needs] To play a role in larger problems that transcend traditional corporate boundaries. Through efforts such as reducing the variability and vulnerability of dependent systems and societies, reducing polarization, optimizing both social and business value, and rethinking business models for sustainability. We should look to strengthen the social structure. “

You may be wondering: what can my company help?

Take advantage of your business strengths and start from there.

Be more sustainable, Defend diversity, And helping the cause of reducing inequality will improve the resilience of society. And helping make society more resilient will ultimately help our business to thrive.

Final idea

As entrepreneur, Whether it’s a virus, a war, or a natural disaster, you need to already anticipate and rigorously plan for the next corporate crisis.

As history shows, crises inevitably occur, and companies that do not plan a crisis are their victims.

“As we saw in Covid-19, more resilient businesses have yielded better results, and some have emerged as new winners,” the Harvard Business Review said recently.

Resilience can be a secret weapon, not just a survival mechanism.

Featured Photo Credits: PemaLama via unsplash.com

Five Strategies to Plan for the Business Crisis

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