5 Steps to Managing Recovery in the Wake of COVID-19
Posted: Tue Dec 10, 2024 8:51 am
The COVID-19 pandemic has been difficult for business owners; most have had to slow down or completely shut down their operations due to the public health crisis.
Many of us are cautiously optimistic about the recovery that is beginning to take shape.
However, restarting activities will require preparation and will have to be managed with caution.
Here's a five-step framework to help you successfully manage your business recovery.
1. Health and safety: beyond social distancing
Now more than ever, providing a safe work environment is essential to serving our customers.
We've all seen the tape on the floor and the plexiglass in front of the checkouts at the grocery store.
It is important to recognize that health and safety goes beyond these overt efforts. Every aspect of your business will be impacted:
How will you ensure physical distancing in common areas? How will staff arrive at work?
How will you ensure that the refrigerator and microwave are disinfected between uses?
How will you handle suspected or confirmed cases of COVID-19 in your workplace?
How will you communicate this information to your staff?
All of this needs to be decided before you can safely resume your activities.
We also encourage you to consult your provincial public health agency website for recommendations specific to your region and sector.
2. Make production decisions
One of the main challenges for companies in a crisis is to realign offerings with customer needs.
Perhaps goods or services that sold well before the pandemic are no longer as popular, or customers don't need the same quantities as before.
Therefore, your priority should be to try to understand the demand for your products in the short to medium term.
Once you understand the market for various products, the next step is to prioritize which products you can deliver and have the best impact on cash flow.
Ask yourself the following questions:
Who among your customers will pay the fastest?
What can be sold using existing inventory?
Which product assortment is more advantageous given the current context?
Initially, you'll probably want to limit your offering to avoid having your money go to unnecessary inventory, finished products, or activities that might take a long time to convert into cash.
3. Assess risks and develop contingency plans
Once you have a clear idea of the products or services you student database want to offer, you need to conduct a risk assessment to identify any issues that could impact your production or service delivery.
We suggest that you make a list of the key resources you need and then identify the risks that could affect your production or service delivery.
For example:
Are you dependent on a supplier who is at risk of closing?
Do any people on your team have skills that are essential to delivering services?
Do you need a specific piece of equipment to serve your customers?
The idea is to determine your risks and then look for ways to mitigate them.
If you are concerned about supply, consider finding alternative supplier companies that you could do business with in the event of a disruption.
Train your staff so that operations are not impacted if some people cannot come to work.
It’s crucial that you have a plan in place in case critical technology and equipment fails. It can be as simple as knowing who to call.
4. Restart your activities
As mentioned earlier, when restarting your operations, your priority should be to implement strong health and safety protocols. In addition to ensuring the safety and well-being of staff members at work, these protocols minimize the risk of outbreaks that could impact operations.
You can then define your operations management plan.
What will you produce or offer?
What materials and labor are required?
What training is required to ensure business continuity and reduce risks in the event of absenteeism?
We have created several free tools to help you manage operations .
Finally, you'll want to align your operations management plan with your financial plan . It's not wise to have an operations management plan that you can't afford.
Aligning your operations and cash flow management plans will likely be an iterative process, as you will need to adapt your operations management plan to your financial constraints.
The key is to restart your activities cautiously, with an emphasis on preserving liquidity wherever possible.
5. Execute, monitor and refine
A plan is worthless if it is not properly implemented. To ensure its proper execution, we suggest holding two types of meetings.
First: a daily problem-solving meeting, focused on achievements.
This meeting will answer questions such as:
How did we perform yesterday compared to plan?
What steps should be taken to address the gaps?
What do we need to do today to be successful? (e.g. materials, logistics, etc.)
Second: a weekly meeting to review results, determine improvement actions, and update your financial and operations management plans.
How did we perform this week compared to plan?
What were the issues that most affected performance this week?
Have there been repeated downtimes due to lack of materials?
Have we had to keep customers waiting because we had difficulty finding stock in the back?
Did we waste time because our installation crew had to come back without doing the job because they didn't have the right materials?
The goal is to find solutions to these problems, so that they do not recur and performance improves from week to week.
You also want to take the opportunity to validate and update your plans as needed.
Should we update our forecasts to reflect changes in demand or reopenings announced by the government?
Is our risk assessment still valid? Do we have other suppliers or staff with special skills for which we should establish contingency plans?
With careful monitoring, you can ensure that your plan is executed and remains adequate as the situation recovers and a new normal takes hold.
Many of us are cautiously optimistic about the recovery that is beginning to take shape.
However, restarting activities will require preparation and will have to be managed with caution.
Here's a five-step framework to help you successfully manage your business recovery.
1. Health and safety: beyond social distancing
Now more than ever, providing a safe work environment is essential to serving our customers.
We've all seen the tape on the floor and the plexiglass in front of the checkouts at the grocery store.
It is important to recognize that health and safety goes beyond these overt efforts. Every aspect of your business will be impacted:
How will you ensure physical distancing in common areas? How will staff arrive at work?
How will you ensure that the refrigerator and microwave are disinfected between uses?
How will you handle suspected or confirmed cases of COVID-19 in your workplace?
How will you communicate this information to your staff?
All of this needs to be decided before you can safely resume your activities.
We also encourage you to consult your provincial public health agency website for recommendations specific to your region and sector.
2. Make production decisions
One of the main challenges for companies in a crisis is to realign offerings with customer needs.
Perhaps goods or services that sold well before the pandemic are no longer as popular, or customers don't need the same quantities as before.
Therefore, your priority should be to try to understand the demand for your products in the short to medium term.
Once you understand the market for various products, the next step is to prioritize which products you can deliver and have the best impact on cash flow.
Ask yourself the following questions:
Who among your customers will pay the fastest?
What can be sold using existing inventory?
Which product assortment is more advantageous given the current context?
Initially, you'll probably want to limit your offering to avoid having your money go to unnecessary inventory, finished products, or activities that might take a long time to convert into cash.
3. Assess risks and develop contingency plans
Once you have a clear idea of the products or services you student database want to offer, you need to conduct a risk assessment to identify any issues that could impact your production or service delivery.
We suggest that you make a list of the key resources you need and then identify the risks that could affect your production or service delivery.
For example:
Are you dependent on a supplier who is at risk of closing?
Do any people on your team have skills that are essential to delivering services?
Do you need a specific piece of equipment to serve your customers?
The idea is to determine your risks and then look for ways to mitigate them.
If you are concerned about supply, consider finding alternative supplier companies that you could do business with in the event of a disruption.
Train your staff so that operations are not impacted if some people cannot come to work.
It’s crucial that you have a plan in place in case critical technology and equipment fails. It can be as simple as knowing who to call.
4. Restart your activities
As mentioned earlier, when restarting your operations, your priority should be to implement strong health and safety protocols. In addition to ensuring the safety and well-being of staff members at work, these protocols minimize the risk of outbreaks that could impact operations.
You can then define your operations management plan.
What will you produce or offer?
What materials and labor are required?
What training is required to ensure business continuity and reduce risks in the event of absenteeism?
We have created several free tools to help you manage operations .
Finally, you'll want to align your operations management plan with your financial plan . It's not wise to have an operations management plan that you can't afford.
Aligning your operations and cash flow management plans will likely be an iterative process, as you will need to adapt your operations management plan to your financial constraints.
The key is to restart your activities cautiously, with an emphasis on preserving liquidity wherever possible.
5. Execute, monitor and refine
A plan is worthless if it is not properly implemented. To ensure its proper execution, we suggest holding two types of meetings.
First: a daily problem-solving meeting, focused on achievements.
This meeting will answer questions such as:
How did we perform yesterday compared to plan?
What steps should be taken to address the gaps?
What do we need to do today to be successful? (e.g. materials, logistics, etc.)
Second: a weekly meeting to review results, determine improvement actions, and update your financial and operations management plans.
How did we perform this week compared to plan?
What were the issues that most affected performance this week?
Have there been repeated downtimes due to lack of materials?
Have we had to keep customers waiting because we had difficulty finding stock in the back?
Did we waste time because our installation crew had to come back without doing the job because they didn't have the right materials?
The goal is to find solutions to these problems, so that they do not recur and performance improves from week to week.
You also want to take the opportunity to validate and update your plans as needed.
Should we update our forecasts to reflect changes in demand or reopenings announced by the government?
Is our risk assessment still valid? Do we have other suppliers or staff with special skills for which we should establish contingency plans?
With careful monitoring, you can ensure that your plan is executed and remains adequate as the situation recovers and a new normal takes hold.