[custom_adv] When a crisis like the coronavirus pandemic hits an organization, its executives need to assess the impact on their business model, both immediately and over the long term. A framework we’ve developed over a decade of teaching can help executives identify the business-model risks and opportunities that the crisis presents. [custom_adv] Finally, an organization’s capabilities are the fuel that drives the engine, allowing your firm to create value for customers. A crisis may put a strain on your capabilities — and it may also require that you prioritize different capabilities than usual. Facilities management will take up less time, but IT support for tools like video conferencing may take up more. [custom_adv] Supply chain and production capabilities will be top of mind and more resource intensive than usual in many organizations, since international supply chains are being disrupted. Employees’ typical levels of performance and productivity will be affected by the move to home offices, restrictions on travel, and illness. [custom_adv] Once you’ve assessed where you stand on the four dimensions of your business model, you can think through how potential changes in one dimension can be aligned with the others. [custom_adv] The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. During this time, in preparation of the event that additional appropriations are made to the PPP, contact a lender to discuss your options, and/or work with a small business center to get ready. [custom_adv] SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. [custom_adv] The Centers for Disease Control and Prevention (CDC) and the WHO are updating their guidelines frequently. Businesses should ensure these are followed and that staff are aware of them. It’s also a good idea to restrict contact and non-essential travel where possible. [custom_adv] Specific goals should be outlined for each of these workstreams on a 48-hour and one-week rolling schedule. Minimum viable products should be established, with a calendar of events and milestones that constantly look six weeks ahead. [custom_adv] Defining scenarios can be difficult, but businesses are advised to try to identify trigger variables that will affect revenue and cost. These triggers can then be applied to established scenarios so that cash flow, profit and loss and balance sheets can be modelled. [custom_adv] Geographic areas experiencing high levels of community transition should be established, factoring in suppliers and inventory levels. In order to immediately stabilize the supply chain, businesses should then turn their attention to pre-booking rail and air freight capacity and using after-sales stock as a bridge. [custom_adv] Businesses will need to make a concerted effort to keep customers engaged and reassured in the short term. Inventory planning, discounts and special offers will all help to incentivize current customers. For longer-term stability, firms should start assessing and targeting other market segments and identify opportunities for growth. [custom_adv] Businesses of all shapes and sizes should endeavour to support efforts to contain the spread of the virus wherever possible. Demonstrating this sense of purpose will have a positive knock-on effect to colleagues, clients and the wider business community. [custom_adv] The World Health Organization (WHO) declared COVID-19 a pandemic on 11 March 2020. At the time of writing, there have been more than 187,000 cases of COVID-19 worldwide, resulting in more than 7,400 deaths. [custom_adv] The coronavirus outbreak is undoubtedly a story of human tragedy. But it will cause significant harm to the economy, too – and the true scale of this cost has only just started to emerge.
