Leading Your Business Through the Corona Epidemic

Harper Fox Search Partners

The Covid-19 epidemic is now reaching a new critical phase across the UK & Europe. The main emphasis is and should be on containing and mitigating the disease itself. But the economic impacts are also significant, and many companies are feeling their way towards understanding, reacting to, and learning lessons from rapidly unfolding events. Unanticipated events will be revealed with each new update, and we will only have a complete picture after the epidemic has come and gone. 

Clearly each local situation is different, but we believe there are opportunities for companies to learn from others in regions that are weeks ahead in responding to the epidemic. China appears to be in the early stages of an economic rebound, according to government analysis based on proxies for the movement of people and goods, production, and buying confidence. Many Chinese companies have already moved beyond crisis response to recovery and post-recovery planning. Leaders, what lessons can we learn and instill in our businesses to support our people and aid swift economic recovery?

Create clarity and security for employees: Employees will likely be exposed to conflicting information and feel anxious or confused about the best course of action. Be sure to communicate policies promptly, clearly, and in a balanced manner.

 Beware of hysteria and hype news: News organizations often focus on what’s new rather than the big picture, and they sometimes don’t distinguish between facts and speculation. As you absorb the latest news, think critically about the source of the information before acting on it.

 Reallocate labor, think creatively: In hard-hit businesses, such as restaurants, employees were unable to carry on their regular activities. Rather than job losses, some creative Chinese enterprises actively reallocated employees to new and valuable activities or even loaned labor to other companies.

Support your employees: Be available to support your people, develop solutions to create an information hub where employees can find all the information they need. Many of these needs will be locally specific, requiring a multi-tiered approach to policy making and employee welfare. 

 Travel: Make sure that travel policies are clear in terms of where employees can travel to, for what reasons, what authorizations are required and when the policy will be reviewed.

 Diversity: Having multiple approaches to crisis management is very efficient, a diversity of ideas can greatly enhance solution development. Put together a cognitively diverse crisis management team that will have more ideas about potential solutions, especially if the corporate culture encourages expression of and respect for diverse perspectives. Beware of treating the crisis in one-dimensional manner, as a financial or logistical problem only, and collaborate your team accordingly.

 Remote working: Be clear on your policies, where they apply, how they will work, and when they will be reviewed. Home working is rare in some geographies and the need for additional explanation and reassurance should be expected.

 Supply-chain stabilization: Attempt to stabilize supply chains by using safety stocks, alternative sources, and working with suppliers to solve any issues. Where rapid solutions are not possible, develop plans, put in place interim solutions, and communicate plans to all relevant stakeholders in a timely manner.

 Business forecasting: It’s likely that the epidemic will create unpredictable instabilities. Put in place rapid-reporting cycles so that you can understand how your business is being affected, where mitigation is required, and how quickly operations are recovering. A crisis doesn’t imply immunity from performance management, and the reality is that the markets will judge which companies managed the epidemic most effectively.

 Prepare for fast recovery: Only six weeks after the initial outbreak, China appears to be in the early stages of recovery. Ensure that you are planning ahead for post epidemic, business rebound and growth. 

 Reflect on what you’ve learned: Rather than returning to normal routines when the crisis subsides, efforts should be made not to waste a valuable learning opportunity. Even while the epidemic is evolving, responses and impacts should be documented to be later reviewed and lessons distilled. These situations expose existing organisational vulnerabilities, like an inability to make hard decisions or an excessive bias towards agreement, which constitute opportunities for improvement.