Post originally from Insperity.com
Has your business undergone a major disruption or setback recently?
As your company moves toward the resumption of operations, one of the first tasks should be to put together a business recovery and continuity plan that forces your team to push past immediate and short-term thinking.
If you’re able to pause during the crisis (instead of waiting until it’s nearly over) and begin creating a medium-term plan for how your company should adapt its operations, then you’ll be better prepared to outperform businesses that wait to adjust.
There are three identifiable phases of crisis recovery:
By working through each phase with your leadership team, you can increase the effectiveness of both company and stakeholder responses with business scenario planning:
- First, examine any externalities and projected market movements.
- Then, compare those outside variables against your current capabilities.
- Finally, prepare your business for the emerging opportunities that result.
The crisis recovery cycle
Phase 1: Reaction
This is your immediate response to what has just happened. Your focus should be on:
- Adopting a mindset of agility to become a flexible, supportive leader
- Assessing the situation and determining the nature of the crisis (single instance or episodic)
- Considering the economic situation, any resulting industry forces or reactions, and identifying how other companies are adjusting or taking action
- Evaluating cash position and burn rates, as well as how to facilitate essential operations
- Gathering inputs or information to start initial planning for short- to immediate-term stabilization
- Creating and sticking to a communication plan for your team (employees) and stakeholders in your business (customers, vendors, partners, investors, board, etc.)
Read the full post at Insperity.com