Together with our clients, we are monitoring the latest COVID-19 events and providing perspectives to support organisations around the world, collating our insights and resources on our COVID-19 hub as the situation evolves.
Whilst each industry clear faces their own unique challenges, such as supply chain disruption in retail and travel restrictions for airlines, there are of course difficulties from COVID-19 that will affect all businesses, for example large parts of the workforce being unwell or needing to work remotely.
Right now, we are advising all businesses take the following seven actions
- Put your people first
Given the uncertain situation and requirements to isolate, take actions firstly to manage a smooth transition to remote working, and remain cognizant of the impact of uncertain situations on your teams’ mental health.
- Confirm business resiliency
Implement business continuity plans to reassure employees and ensure readiness to deal with supply chain constraints, demand shocks, and impacts to business partners, prioritising critical business activities and creating contingency plans for disruption.
- Model financial scenarios
Evaluate your business’ financial outlook by modelling supply and demand across a number of scenarios, identifying potential interventions and contingency plans for subsequent impacts and/or sustained challenges, for example developing strategies for managing variable costs, cash flow, and liquidity.
- Reassure customers
Consumer concerns need to be understood, mapped, and addressed so that trust is maintained. This should form part of the overall business continuity plan.
- Digitise rapidly
Some industries are likely to see a massive acceleration in the need to use digital channels. In China, retail, financial services, and healthcare companies experienced 100 – 900 percent growth in key digital channels during the peak outbreak. Customers with positive digital experiences are unlikely to return to analogue channels.
- Prepare for the long haul
Business continuity plans for the pandemic will get companies through the next 2 – 4 weeks, but strategies may be required to get through 6 – 12 months (or more) of disruption if subsequent demand shocks pertain. Companies should consider the nature and required timing associated with more structural changes to their operations.
- Convene and co-create
Companies should consider which industry and government collaborations are necessary to address safety concerns, share best practices, stimulate demand, and rebuild consumer trust.
We wish the best to all businesses in these uncertain times and stand ready to support our clients, governments and societies.
Click here for Oliver Wyman’s latest briefing on COVID-19 epidemiology, scenarios, and business impacts. For more information, contact: Kathryn Weismantel
