The current scenario has made it critically important for companies to recheck operating their cash flow projections. This includes revising assumptions, forecasts and business plans that reflect the new reality facing the world. It is important to prepare current projections that consider the best and worst cases for your own survival for the next few months and longer.
Revising projections looking at the current environment is an important part of making good operational and management decisions. If this is a worst-case scenario that suggests a need for your company to initiate a restructuring process, the sooner steps are taken to start the restructuring process, the more options your business will have. A proactive approach is critical, especially in these fluid situations. Management that hides its head in the sand likely will not survive. An ounce of prevention is worth a pound of cure
Triage is important. Companies have little choice but to pivot meaningfully and strategic planning is the key to survival. This planning has to address the new reality reflected by revised and updated projections
Organizational restructuring for many businesses, has become inevitable. Teams are distributed, people are in lockdown, emotions are running high, and big decisions need to be made quickly. Review all the options to see if any combination of temporarily lowering salaries, cutting benefits, reducing work hours, government support programs, or unpaid leave could be financially viable as an alternative.
Ultimately, not very business will be able to avoid layoffs. If you find yourself in this situation, don’t panic, just get prepared. Whatever are your exact circumstances, one thing is certain: that letting go should be managed in a way that leaves people with their dignity, humanity, and as much support as you can give them. Letting go can be one of the most stressful actions a leader or business owner has to take.
Maintain empathy, compassion, and commitments to the success of the employees you’re laying off. The best first step employers can take before starting to lay people off is to invest time in identifying all their top, average and non – performers. Proactive communication and actions will help mitigate punitive damages, liabilities associated with disrupted obligations and damage to brand reputation.
Employees laid off during COVID-19 will be entering a drastically different job market. Offer any resources you have access to: employment counseling, job training, and introductions. They need your practical help more than anything to keep up their mood and hope in finding a new job. Make sure you send your employees off with great recommendation letters so they feel empowered about their skills and future opportunities.
