In this blog, we will give you the tools to face a crisis and avoiding hasty decision making. It consists of two blogs where we divide the 10 steps that will help you manage these moments of crisis like an expert CEO.
A crisis has impacted our society, and our economy has been affected by delays in internal workflows. Some aspects have been halted, and others slowed down. Companies and entrepreneurs worldwide need to find ways to solve the adversities that arise and will arise in the future.
The purpose of this blog is to give you 10 steps that will help you make correct decisions when facing an economic crisis:
First 5 steps:
- Mentality
First, a CEO must develop characteristics that help to deal with problems of this caliber. You must be persistent, optimistic, and realistic at the same time, along with the ability to remain calm so that adversity does not cause you to make wrong decisions.
An entrepreneur will have to change how they process decisions and take a winning mentality that helps to confront the problem.
Here are some reactions you should have when facing a crisis:
- You must be empathetic to your workers, understand the situation, and share valuable information with them.
- Don’t put your goal aside. Remove any barriers that interfere with your main goal.
- Have contingency plans that help you overcome the crisis. If you don’t already have them, it’s time for you to create one to help you through future challenging times.
- Channel paranoia. It’s easy to get carried away for the moment, but a good leader remains calm and passes it on to his people.
- Create a connection with your team. This way, your peers will work alongside you to find a solution as one.
- Don’t lose sight of the market. Remember your customers’ needs and new needs that arise during this time. It is important that you show your clients that you also understand and that you want to do something for them.
- Employees
Workers are the most important thing that companies have. In the face of the crisis, it is important that you, as boss, explain to them what they should do, tell them that difficult times are coming. Tell them that it will require hard work to overcome the crisis, all without leaving aside your considerations.
In some cases, CEOs must make decisions that help overcome the crisis, such as:
- Indefinite suspension of bonuses and incentives.
- Limited overtime pay.
- Communicate with honestly to the employees about the current situation of the company. Explain the policies that will be implemented in the different scenarios of the crisis.
- Listening to employee opinions will always be an excellent option.
- Consulting and working from home
- Comply with the health standards required by law.
- Decision-making: flexibility
A CEO or business owner must be empathetic and manage flexibility both with his employees and with himself. Do not allow for complacency with tasks or instructions given to employees. At the same time, there are situations where you can be a little more adaptable, without losing control.
- Variation in employee productivity.
- Changes in workflow.
- Ups and downs in the supply chain (generated by the stoppage of production).
- Finance
First of all, it is important to asses how productive your company is so that you can analyze how it will be affected and how you minimize losses.
Then you must identify your type of customer, the product or service you are selling, and empower them with marketing strategies.
Third, you should review your monthly expenses and costs, especially the fixed ones that are the ones that will affect our companies a little more, and you should see how you cut or reduce them. We recommend that you make a forecast and compare how much money you have to alleviate the crisis problem.
It is imperative that you talk to your employees about wages and your activities from home. If you reach an agreement with them, you will be able to stand “on your feet ” during this crisis.
- Operation and Culture
It is necessary to review the supply chain, which will have changes as a result of the crisis. The acquisition of supplies could be hindered, and this will delay production in general. Remember to review the manufacturing, distribution processes, and your relationship with suppliers and identify the necessary contingency plans.
Reconsider the way your company works. The output from each of the workers can vary according to the needs of the company during the crisis.
Watch out: The importance of the company’s values should not be set aside. Always maintain a balance with the company’s values in mind.
These are the first 5 steps you should analyze during the crisis; this will help you to see beyond the problem and to solve future issues that arise.
You may be interested in reading: Steps to manage your business in times of crisis (PART 2)
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