The global economy is re-opening and the decisions you make in the next 90 days will define the future of your business. Studies have shown that companies who are innovative and transformative during a recession outperform their peers. In a previous blog – Managing Your Way Through 2020, we offered a playbook for re-opening your business and a three phase strategy to support it. Most businesses are through phase I and are now focused on re-opening and getting back to business – financial performance, sales and growth. While that will happen in over the next few months (timing will be dependent on your industry), companies need to develop a 90 day tactical plan (our phase II) and then work on changing their 2020 strategies (phase III).
Leadership will need to think through the re-opening process and define how to operate their business over the next 90 day period. This is a tremendous challenge because none of us know what is going to happen during that period. Just yesterday, Ford was forced to stop work at two plants that had just been reopened because they found workers who tested positive for COVID-19. Your protocols will need to identify actions for something like this. It is highly likely that your business will encounter bumps in the road which could include employees not wanting to come back to work, resistance to safety procedures and protocols, lumpy demand and disrupted supply chains. When creating this plan, it is important to remember that a significant emotional event such as this creates a robust change management environment – Don’t be afraid to be innovative and transformative because your organization is expecting it.
Your 90 day tactical plan will need to concentrate on the following areas:
- Re-opening – Setting up the appropriate safety measures and protocols to insure workforce health
- Organizational needs – Who you need to run lower volume day to day operations and who you put on innovative and transformative projects
- Market Insight – Understanding your customers’ needs, plans and strategies
- Staying close to your customers is critically important
- Understand the new weaknesses of competitors
- Product and Services Mix – Reviewing customer and product profitability
- Define the go forward portfolio of products and services
- Identify low margin customers and products – Create a fix or exit plan for them
- Scenario planning – Creating a likely case revenue model for the balance of the year with performance trigger points that initiate predefined actions
- Supply Chain Insight – Every company has a supply chain and they need to work closely with suppliers to understand their re-opening plans and risks, which includes developing a supply chain resiliency plan.
- Financial Health – With the above items completed, leadership will be able to create financial models for the balance of the year and make appropriate financial plans
Leadership teams will need to spend as much time on this as they did on their shut down planning. We are encouraging our clients to involve people at all levels from every function in creating their 90 day tactical plan. Everyone has some level of anxiety and fear about the future. Involving teams of people in the development of this plan will provide them with clear insight on the future of the business – the proverbial “light at the end of the tunnel”. Workers of all ages want to have a secure future and are willing to do what it takes to secure their future. Take advantage of it, but make sure everyone is aligned with what the business needs to do in the next 90 day period. Remember, the next 90 days will define the future of your business.
Group50 consultants have been through many economic cycles and have helped or led the recovery of companies in many industries. Each of the 7 tactical plan components have a series of best practice activities that will focus your 90 day tactical plan on the right issues. We have created a long list of these best practices and via a virtual 1/2 or full day workshop, we can help a company’s leadership team create their 90 day tactical plan and prepare for the creation of a new 2020 strategic plan. You can reach us at (909) 949-9083, drop us a line at email@example.com or request more information here.
You can read more about our recommendations on re-opening your business on the following links:
- Risky Business…Is your company wearing Tightie Whities?
- The Great Reassessment – Inflection Point
- Is Your Company at an Inflection Point?
- Strategic Maturity – An Imperative at This Economic Inflection Point
- Get on the Train or Get off at the Next Stop! – Inflection Point
- What is an Effective Sales Strategy? – Inflection Point
- Help! I Stopped Growing! – Inflection Point
- Podcast With Jim Gitney on What to do About Moving Through an Inflection Point
- Strategic Planning Playbook
- Virtual Strategic Planning and Strategic Execution