The NOW Guide: Dealing with Disruption

March 24, 2020

The NOW

Many companies are acutely feeling the effects of the pandemic on their business. From declining revenue to broken supply chains, and the inability to quickly access financial data, companies must deal with disruption by taking immediate steps to stabilize their business.

Find out how

Steps to Stabilize Your Business

As your management works to immediately stabilize the business, four key principles should guide your decision-making process in dealing with disruption.

LIQUIDITY MANAGEMENT

Launch an aggressive cash triage program focused on quick wins, including deferral of all non-critical spend and working capital optimization.

Understand near-term liquidity position
Optimize available credit

Pursue incremental liquidity
Optimize working capital

COST CONTROL

Adopt an operator’s mindset that holds your team accountable for savings—bias should shift from growth mode to “fight for survival” mode.

Optimize supply chain costs
Manage workforce expense
Minimize CapEx

Control technology spend
Rationalize strategic initiatives
Address other SG&A expense

OPERATIONAL CONTINUITY

Establish a crisis management team to refresh your business plan for current crisis environment while ensuring resiliency across sales, operations, and other essential functions.

Protect revenue
Reforecast and refine reporting
Expand remote work capabilities

Execute demand planning adjustments
Stabilize supply chain
Strengthen operational redundancies

STAKEHOLDER MANAGEMENT

Communicate and align with key stakeholders, as success or failure will ultimately be driven by how management chooses to lead.

Align with sponsor and board
Hold leadership accountable
Engage with lenders/creditors

Manage external communications
Distribute internal communications
Encourage employee connectivity

Is your business stable?

While it is still uncertain what the long-term business impacts from COVID-19 will be, one thing is clear: companies must act now to deal with the disruption. Download our guide for immediate actions and considerations across critical financial and operational areas.