Report: 5 actions to take in a disruptive economy
Global consulting firm The Hackett Group is taking steps to help companies deal with the sudden and dramatic business disruption caused by the coronavirus pandemic, most recently with a report outlining five "essential actions" companies can take to counter disruption and make the most of their assets—in both the short and long term.
The complimentary research is titled Disruption 2020: Five Essential Actions to Take Now and includes guidance on labor, finance, and the supply chain. The authors say the steps can help "yield a significant, positive impact in the near term. These actions can also be catalysts for meaningful performance improvement in the longer term as crucial first steps to close the performance gap. In fact, top-performing companies operate at 57% less cost, which, for a $10 billion organization, equates to approximately $200 million in cost savings from general and administrative (G&A) efficiency alone."
The five steps include a list of what companies need to do now and, most importantly, how they can do it. The steps include:
- Protect your employees and keep them informed and engaged. Actions include prioritizing employee health and safety, developing effective communication strategies, and providing the tools and support employees need to do their jobs.
- Defend your financials. Actions include accelerating forecasting frequency and using scenario planning to develop better decision-making skills for high-risk situations.
- Safeguard your supply chain. Actions include countering demand shock by identifying and analyzing scenarios and planning your response; identifying imbalances between supply and demand by product and geography; and prioritizing channels and customers in order to execute solutions.
- Preserve your cash. Actions include injecting liquidity into the end-to-end supply chain via customer and supplier terms management and/or by building strategic inventory.
- Fortify your infrastructure. Actions include considering the demands on your IT function in order to sustain virtual work and collaboration over a period of time—possibly indefinitely.
Access the full report here.