Framing Good Strategic Management in Crisis
Nowadays all managers and businesses are facing a strategic management crisis called the coronavirus and Whatever crisis guidebooks about management that existed before now sound useless. But this challenge is completely different in comparison to other crises that businesses encounter. The Corona crisis has 4 phases that each has its uncertainties and authorization which help managers to build a good foundation and strategy at this time of unprecedented crisis.
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Before starting anything let us tell you what these 4 stages are.
Expecting the main strategic impacts
As corona spread all over the world a lot of businesses and markets shut down due to the prevention of disease infection. This shut down makes fierce and abrupt decrees in global economics. A lot of markets and businesses tried really hard to get through this crisis by using different mechanisms.
Thwarting the initial impacts through management
As illnesses quickly arise, managers start acting to reduce the risk of money shortcuts. There was no income and budgets were running out. They struggle hard to meet their needs and decrease the risk of going bankrupt. The process of risk management in the corona era starts from this phase.
Returning to normalcy
As sickness lessens either through medical progress or as people have the virus and much of the population develops immunity, economic activity starts to resume due to both growing confidence and utter necessity.
Figuring out the new facet of industry dynamics and strategies
There is no way to ignore the fact that the nature of business competition has changed since the coronavirus advent. Both B2B and B2C behaviors have shown new patterns. For smart managers and those who are knowledgeable enough this is a new aspect that can open new doors for industry marketing.
How can I use these phases to build up my risk management?
To create a rational plan as a manager and owner of a business you need to be aware of the uncertainties and threats that are spinning around your markets. Let’s see what these uncertainties are.
There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don’t know we don’t know.
Sometimes you know which facet of your business must be changed. This is a step that you should face the changes. This is your time to make disruptive innovation and spice up your business. You shall observe the truth and question those that must be determined.
Information is a key term in crisis times. Do not forget the importance of sharing data. People who are working in the front line may know more about the market and business especially in times of crisis. Use their knowns and hold key seminars and meetings to share whatever you know
Sometimes front line people are more aware than the executive team this is crucial to keep perspective flowing and let leaders know what they do not know.
When businesses face crunch, the executive suite should build a strategic plan as soon as possible. This is crucial to figure out what is necessary and what is unneeded then you should frame agile and scrappy market research to understand how the market shifted in a new perspective. Strategy – Rigorously will list hypothetical assumptions and how they can be tested or their challenges through a crisis like coronavirus.
Unknown Unknowns (unfathomable uncertainty):
Recent surprise that causes major losses in a wide variety of businesses made managers think more seriously about uncertainties of a market. We are likely to be surprised in different aspects and that is ok but the important point is that as a leader you need to gain visibility through a crisis for future planning. Your competitors’ war gaming and moves will also give you the vision to do Strategy – Develop scenarios. This strategy will provide you enough information to know unknowns and conquer the unexplored area of your territory.
Have you ever thought of a matrix?
If you need to navigate the adverse impacts that corona has made to your business the best option is to build up a matrix and try to utilize that matrix to frame your market. By putting four phases and uncertainties types together you will be aware of primary strategic challenges you will face. Each market and business is unique for sure but some crisis such as corona is new for everyone so it is rational to use a planned matrix to know what the sophisticated fundamentals that you should consider are. Either you are a professional or a starter this though starter gives you the perspective to consider external factors. Do not forget to flesh out these strategies with your enterprise and also internal issues as well.
This matrix is provided by the market advisor 2020.
Uncertainties are ahead of us
Whether you accept it or deny it corona made big shifts in our businesses. Lots of markets failed due to a lack of knowledge to encounter the crisis. You do not need to be a victim of these challenges.by inferring different stages of a catastrophe and various uncertainties you can come up with an idea to craft your Strategy plan.
Here at Maadico, We provide these services through our highly professional and sophisticated team of experts in the fields of Strategy, Sustainability and Marketing. Maadico Also helps companies to expand their market into the international Arena through Digitalization and a Marketing and Sales Program.