An action plan for companies to combat Covid-19

TO SAY that these are unprecedented and extraordinary times is an understatement. The Covid-19 pandemic has dragged individuals, corporations and governments around the world into a maelstrom of reaction. Just this week, India began a 21-day nation-wide shutdown; Malaysia extended its movement restrictions to mid-April; and here in Singapore, entertainment venues and tuition centres will be shuttered for a month.

Global disruption is the new normal as guidelines and policies evolve with the progression of the virus spread.

What do companies do now to deal with the uncertainty and keep running? The answer begins with a single, simple notion, as obvious as it is difficult: Calmness. Amid any crisis, staying calm is the first step, followed closely by its analogue: Patience. What happens after that? How best do we act to protect ourselves, prepare for the future, and perhaps even improve our positioning? Can there be a silver lining to this moment of disruption?

It is clear that this is the time to plan and act and not wait to react. To this end, IBM, through our Institute of Business Value, has distilled a set of measures and policies in an "Action Guide" to help leaders deal with four key components: employees, customers and partners, finance and operations, and the community in which they operate.

Employees

With Covid-19 changing the way many people work, here is a simple checklist of what is needed to facilitate new ways of working (for example, working remotely) that also considers an individual's emotional and financial health in addition to having the basic infrastructure in place:

Over the long term, it is likely that the move to remote work - a trend already in place before Covid-19 hit - will be accelerated. Many workers are getting trained on - as well as being comfortable with - the new tools; the tools are also being improved and fine-tuned by their heightened use and importance.

Integrating that enhanced capability to work from anywhere - be it from home, an office location, a client site or anywhere else that makes sense - will impact staffing, IT, real estate and other departments, as well as expectations of the workforce. Those organisations that optimise for this new normal can improve their competitive positioning, for recruiting as well as operational efficiency.

Customers and partners

Most companies would by now have established policies and practices to support and communicate with their customers and partners. A quick rundown of what should be in place:

One long-term trend likely to be accelerated by the crisis: demand for better user experience. This will be specially relevant for digital products and services - accelerated by the frustrations of social distancing - and the remote resources available to address them.

Business-to-business practices that have remained stubbornly resistant to digitisation will come under increased pressure. Any new expectations and practices that take root during this crisis period on the parts of businesses and consumers may be anchored for the future.

Finance and operations

Three areas are especially important: supply chains, production lines, and distribution channels. All three are dependent on each other, and interdependent on others and on the larger economy. Here's a rundown of the policies and practices your organisations should already have in place:

Other mid-term steps could include reassessing inventories. Some industries (oil, iron ore, steel, etc) have already chosen to begin building up inventories, as they wait for demand and prices to recover. This is leading to increased utilisation of warehouses.

Meanwhile, construction projects are being paused, accelerating the demand slowdown. Not surprisingly in this environment, cash preservation will become increasingly critical. That will underscore the need for optimised finance processes. Overall, the just-in-time nature of our economic system will become even more hardened to encapsulate even greater agility and responsiveness.

Community

Most organisations are already deeply engaged with their communities. In the Covid-19 era they may have already put in place these policies and practices to increase connections with their community:

Even as businesses struggle with financial choices and supply-chain shortages, it would be good if they could also build plans that include a measure of community support. Exhibiting leadership at critical times like this, builds - and earns - respect.

And more than that, it's just the right thing to do.