Consulting firm Bain & Company proposed mobilizing senior team, forming possible scenarios and action plans to arrest revenue declines and stabilize business operations under COVID-19 crisis

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A CEO Plan for Coronavirus: Actions to Take Now

Taking CEO and Leadership Actions – Consulting firm Bain & Company proposed mobilizing senior team, forming possible scenarios and action plans to arrest revenue declines and stabilize business operations under COVID-19 crisis

Summary:

Consulting firm Bain & Company recently published a perspective on March 13, 2020 entitled “A CEO Plan for Coronavirus: Actions to Take Now,” which proposes possible scenarios, action plans and leadership teams can take to arrest revenue declines and stabilize business operations due to the COVID-19 crisis. Summary recommendations include:
  • COVID-19 Impact to Businesses – Process of containing spread of COVID-19 will bring about major disruption for companies, including potential revenue and liquidity crisis, customers and employees in panic
  • CEO Checklist Urgent Priorities – Bain & Company also identified six priority areas that CEOs and leadership teams must take into consideration, including:
    • People – Protecting employees and customers by monitoring health guidelines, implementing best-in-class practices, overcommunicating, and assisting epidemic-limiting activities whenever possible
    • P&L – Stress testing P&L and liquidity by outlining macro economic scenarios across all markets, building extreme negative scenarios, and identifying potential major operational actions to take
    • Revenue – Defending against revenue declines by taking a more customer-centric view, taking actions against revenue declines in core business lines, and allocating resources to current and future growth drivers
    • Operations – Stabilizing operations for the new normal by managing supply chains from potential geographic and labor disruptions and building contingency plans for all aspects of the business
    • Costs – Planning cost-cutting measures to conserve cash by putting brakes on non-essential spending, setting draconian measures for extreme scenarios, and outlining a more lean cost structure for future adoption
    • Offense – Playing aggressive during the crisis by defining how to outperform competitors, preparing for recovery and anticipating potential changes in customer behavior
  • Begin Process for Dealing with the Crisis – Create and align senior team on COVID-19 situation with a wake-up call, establish dedicated teams across various departs to implement plan and monitor daily progress, and create macro scenarios that can inform business contingency plans to arrest revenue decline and operational disruptions
The full perspective is available for free on the Bain & Company website: https://www.mckinsey.com/business-functions/organization/our-insights/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-challenges
Company: Bain & Company
Categories: Business operations, Cash flow and financial management, Leadership teams, People and culture, Revenue protection and opportunities, Strategy, Supply chains
Source:

Original publication date: March 13, 2020

Date last updated: April 3, 2020