Crisis Leadership – What To Do Now?
August 17 , 2020
At CFO Consulting we serve the needs of Boards of Directors, CEOs and CFOs. We provide senior-level C suite and Board services to small and mid-sized public and private companies. In this current environment of the COVID-19 pandemic, we are focusing on helping Executive Management and Boards navigate through this crisis.
The following presents some thoughts for your consideration:
- Prepare for talent disruption by considering interim executive resources, and by evaluating how functions are operating virtually. Parts of the accounting and finance function may be operating effectively in remote locations, while others may require intervention.
- Bolster liquidity by understanding and managing your short-term credit, cash, and performance needs. A strategic focus when combined with well-thought through tactical plans to drive operational and cash flow improvements, including a 13-week cash forecast, should provide sound direction.
- Increase communication with your critical stakeholders, including employees, customers, suppliers, auditors, regulators, and the SEC. It is said that one should err on the side of over communicating. In times of crisis, we suggest that this is truer than not.
- Review and manage all risks in the organization to ensure that a less obvious risk doesn’t catch the organization off guard and hinder recovery or growth plans.
- Conduct a cost reduction review of all areas of the company. This may be a time to take cost reduction actions that may have been postponed during good economic times.
- Review your financial reporting to make sure it continues to serve the needs of the company during times of distress. It is said and I paraphrase, if one can’t measure the results of an action, then we don’t know if the action produced the expected result. There may also be specific reporting issues that come to the fore, such as asset impairments and going concern analyses.
CFO Consulting Partners can advise you in all of the above areas of crisis management.
For more information, please contact one of the following:
Ashish Bali, Senior Advisor, who authored this article. Ashish is a former Deloitte CFO and a member of several boards; he has hands-on experience in the above areas. email@example.com, 609.309.9307 x741
Allan Tepper, Sr. Managing Director, who edited the article and has crisis management experience. firstname.lastname@example.org, 646.650.2028 x701