Responding to Covid-19 - A Strategic Framework to Guide Business Action

Description
COVID-19 represents a formidable challenge to businesses of all sizes. Necessary policy responses have caused significant disruption to the global economy, with simultaneous demand, supply and financial shocks. Most businesses are experiencing a sharp decline in near-term revenue, requiring urgent action to mitigate the impact on cash flows and potentially seek additional sources of funding.

Drawing on insights from over 25 years' experience in turnaround management and business performance improvement, we have developed a strategic framework which can assist businesses in working through their response to COVID-19. This report sets out a suggested response framework for senior executives. Having ensured the immediate continuity of the business, cash flow scenario modelling can assist in assessing the degree of mitigating action required to secure a sustainable near-term platform for the business. This is likely to require a combination of initiatives to support revenue where possible, together with
measures to reduce the cost base, and tight control over working capital drivers.

In this report, you will discover:
- A three-stage framework for developing a response to Covid-19
- The key components of a Covid-19 business continuity plan
- Cashflow modelling in times of extreme uncertainty
- Cashflow mitigation strategies to secure the near-term viability of your business
- Possible medium-term strategic implications of Covid-19
- A process for driving rapid execution of initiatives in a turnaround situation

We share the frameworks, tools and checklists we use when working through a Covid-19 Response Strategy with our clients. These are challenging times for businesses of all sizes. We hope the approaches and principles set out in this article assist you in formulating your own response to COVID-19.

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