Learning from the Chinese experience – Management during Coronavirus Times: INFORMATION AND AWARENESS (Part 2)
If you just did cost control, secured your cash flow, secured your HR through short-time working provisions and state subsidized employments, maybe applied for a bank credit, state-backed, you are far away from successfully managing your company and navigating operations during these challenging times.
You better note that there are two types of companies which are running into serious trouble. The first ones are companies which are not competitive in the long run and the other ones are startups depending on external financing. So if you are one of the two, then you better be well prepared.
The economy will not be the same after these lockdown times and you are advised to not only mitigate the risk but also work on your upcoming opportunities. What if your major competitor fails to manage the crisis and you will come out on top? What if you can offer new products which were hard to sell before? What if your clients now appreciate your high service level and support which they ignored in the past? What if you finally manage to buy your target company?
So awareness and information are king during these times. This means not just sitting at home in your home office and react to requests from your team. You have to actively manage your operations and especially work on your opportunities!
So you should focus on gathering crucial information and data which is key to long-term success. Involve the whole team, involve your specialists. This applies to the supply chain, logistics, R&D, sales/services and possible M&A targets. What major changes does the situation bring? If I do not get the parts I need, where can I get them. Or can I control supply? What if my competitor does not get the parts I have? Maybe I can acquire supplier X. So you should closely watch the supply market, have yll relevant team members involved in this task, have weekly (online) meetings to exchange newest information and maybe decide on adequate measures. This applies to all other fields of concern as well.
You will see that just after a couple of weeks you will not only be able to make an assessment but to really be ahead as you have all necessary information and data to position yourself ahead of your competition. Just imagine the impact if one or two competitors will not survive the crisis. What do you have to do to come out on top of it. The companies who wait for their outcome and hope on financial survival might be able to keep their status quo but will not number one for long.
A companies success still depends on profitability not cost saving. So you better evaluate your fields of growth and increasing competitiveness. Choose who in your team you want to invlove in the process and get down to the table and start real work! Wish you all success!
And what does this teach us from the Chinese experience? Supply already has shown that dependencies on China are a major risk for the company. But what if I have a good relationship with my key suppliers and my competitor not. Now there is a concern that Chinese companies take the Covid-19 crisis as an opportunity to acquire companies in the West. Why not acquiring companies in China? Why not entering crucial strategic partnerships with your Chinese partners to be on top globally? There are plenty of chances and thus I recommend get in touch with your Chinese colleagues and business partners! Reach out, these are the time of opportunity!