BCG provides advice to CEOs on practical steps and urgent decisions they need to make to protect their people, finances, systems and operations, as well as future opportunities

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COVID-19 Response: Big Decisions for CEOs Right Now—and Urgent Questions About the Time After

Protecting the Future of the Business – BCG provides advice to CEOs on practical steps and urgent decisions they need to make to protect their people, finances, systems and operations, as well as future opportunities

Summary:

Boston Consulting Group published article on March 20, 2020 regarding urgent decisions Chief Executive Officers (CEOs) need to make in response to COVID-19. They include:
  • Mobilize Crisis Response and Communications Team – Establish virtual response room where key players are updated on company and marketplace situation, as well as issues organization is facing, the responses to problem/s, and what needs to be communicated to employees, customers and business partners
  • Stress Test Profit/Loss, Cash Flow and Liquidity – Create detailed financial modeling of top five markets and gauge sensitivities in profit and loss, making sure to preserve cash and strengthen liquidity, possibly postponing CapEx and large OpEx projects
  • Reduce Burn Rate When Possible – Make decisive but no-regret moves, such as freezing hiring and salary increases, reducing headcount of low performers, decreasing marketing during peaks of outbreak, and other cost-related actions, while planning for worst-case scenarios
  • Toughen IT Systems – Make sure IT systems can handle increased load from teleworking employees and operations, as well as securing assets from cyberthreats
  • Protect and Engage Your People – Establish remote-working and social distancing practices, engage staff frequently, address people’s panic and fear, be honest and transparent, share their concerns, and meet practical challenges to help them cope
  • Stay Loyal to Customers and Do Good – Help loyal customers with solutions that make a difference, identify pro bono opportunities, and try to help larger communities
  • Plan for Post-Outbreak and Long Term Actions – Assess how recovery is evolving, what strategy to use for resources and investment once economy rebounds, identify key market changes, and address new buying patterns, opportunities and behaviors
To read article for free, please visit https://www.bcg.com/en-us/publications/2020/covid-ceo-response.aspx
Company: Boston Consulting Group (BCG)
Categories: Cash flow and financial management, Customers, relationships and channels, People and culture, Remote work

Original publication date: March 20, 2020

Date last updated: April 13, 2020