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!
Learning from the Chinese Experience – Management during Coronavirus Times: INTRODUCTION (Part 1)
„Learning from the Chinese Experience – Management during Coronavirus Times“ shall give investors and top managers guidance of how to steer and manage their companies and staff during times of decreasing economic activity based on worldwide lockdowns because of the mitigation of the coronavirus. Why the Chinese experience? China went through what we are going through in Europe already a couple of weeks before and if we look at China, we can get an idea of how challenging the way back to recovery is. That is why I recommend to have a close look onto current China operations and stay in close contact with Chinese business partners as you will get the chance to learn for your operations in Europe and other regions in the world.
The upcoming articles will look at the most important tasks of managing your company and employees. Please note that the most affected companies are either companies who are already not profitable or start-up companies depending on constant financing. If you are in the first group, you can be prepared for real challenges up to come. If you are in the latter, you have to have a plan of how to guide your company through these difficult months. You have to be aware that such crisis situations as we currently face bear opportunities we never had before, so we should not only look onto the Coronavirus times as times of crisis.
During the next days, we will look at the following topics: AWARENESS AND CHALLENGES, HOW TO MANAGE YOUR TEAMS, INFORMATION GATHERING AND THE POWER OF HAVING INFORMATION, RISK MANAGEMENT, STABLE CASH FLOW AND FINANCING, OPPORTUNITIES, THE ROAD TO RECOVERY.
We will look at all of these topics from the Investment and Management perspective and reflect these situations with China in regard of similarities and differences. Such shall give you a thorough understanding of how and when to undertake the most appropriate investment and management decisions.
Do not forget your China team
Numerous cities such as Shanghai and Beijing are still under lockdown status and this is having a major impact on your company’s operations in China. Here, I kindly remind you to not only follow the news and try to make up your own picture.
Stay close to your team and employees in China, they need your support the most. I recommend to look for alternative working models such as working from home or to base the work schedule on a flexible time plan. Postpone unnecessary business travel and communicate more via online media such as video conferencing. Get in touch with your China team(s) now and clearly communicate of how work arrangements will be done, but always in a responsible manner which guarantees that all of your employees stay safe! And do not forget your trustful business partners. To fulfil contractual obligations is not only a challenge for your company but also for your business partner. So before you announce the force majeure case, better think about finding a solution which takes your and your business partner’s interest into account. Do not forget, business is all about people!
"Be not afraid of growing slowly,
be afraid of standing still."
- Chinese Proverb
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We are your long-term partner to make sure that your investment in Asia is bringing returns and build operations in a stable and profitable way
We support your management and team in Asia in order to achieve growth while at the same time building a strong bridge with headquarters
We come to the rescue during times of crisis by providing adequate change management solutions in order to achieve a positive turnaround
You will reach better results with our support.
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