COVID-19 has immediately exposed operating deficiencies for all types of businesses and non-profit operations. When business is good and cashflow or revenue is consistently rising year over year, operating missteps or strategic model weaknesses are hidden.
Because money hides mistakes.
When a national or a worldwide calamity like COVID 19 hits your organizations’ operating model – postponing or freezing your revenue capture opportunities, leadership often becomes challenged on how to work their way out of their current situation.
But, what about the next virus?
What about a recession?
What about competitors stealing cashflow from you?
What happens if Walmart or Amazon enters your market?
Build Risk Management Plans for Revenue Impact Issues
COVID19 should be a wakeup call for all leadership when building and implementing their go-to-market strategies to build proactive options for revenue capture to help balance out unforeseen cash generating impediments, that can happen at any time.
Known as Omnichannel marketing in the retail industry, it is really an approach to develop cross-channel customer relationships, that seek out alternative marketing and sales buyer interaction models, accepting that nothing works as it supposed to.
Limiting your revenue generation to one or two operating models, reduces your ability to scale your operations, especially when one of those models are affected by an outside market, social or environmental influences…external factors you cannot control.
If you currently own a table service, sit down restaurant – will you build a takeout window into your location design and do delivery at your next location?
If you teach martial arts at a strip mall – will you change your group training and one to one class to Zoom training to keep your paying customers happy during another virus scare?
If you are a manufacturing plant, when your primary vertical industry because entangled in a market freeze – won’t you seek out new buyers in a new industry?
But, why do executive leadership often wait for the sky to fall to modify their operating behavior?
Why do executive teams not have ready-to-go risk management plans for revenue impact issues?
Its often because we don’t build a risk management impact analysis into our operational go-to-market strategies. As a growth-directed Operations Manager, your goal should be to act like a speedboat – not an aircraft carrier, when changing to adapt to the current market conditions.
Becoming an Agile Business
COVID 19 has taught everyone that agility is a key business success driver.
In May 26, 1995, Bill Gates, wrote his famous Microsoft ‘Internet Tidal Wave’ email to his whole company after he admitted that Microsoft was falling behind their competitors in their development for the Internet.
In his letter – Gates directed his multiple billion-dollar aircraft carrier sized company to take a sharp 90 degree right turn and focus on being Internet ready.
Gate’s agility move is a classic example of how your company leadership should respond to when the un-forecasted happens.
Operating risks for business continuity in commercial, non-profit and government entities need to go beyond national, international or weather impactful events when completing the risk management assessments.
Risk management is the identification, evaluation, and prioritization of resources and the impact on your organization – when unfortunate and/or unforeseen events happen. True national go-to-market strategy success development programs always takes into consideration a broad range of risk management assessments beyond the financial issues needed but also include operational, environmental, technology advancement and talent pool availability.
Alan Lakein – once said: “Planning is bringing the future into the present so that you can do something about it now”.
When building out and planning a risk management model for your city, healthcare facility, manufacturing operations or your restaurant chain, focus on these five key operating approaches:
- Always pre-plan for cashflow impact – the world is unpredictable – things happen – always plan
- Operate and measure your organization in real-time – change happens faster than most leadership sees – review mirror management is always too late.
- Track top key operating drivers and metrics in detail – metrics if measured correctly don’t misrepresent – team members sometimes do.
- Agility is an organizational success factor – if Microsoft can redeploy their resources quickly and change their operating model – so can you.
- Leave ego at the door – senior executives who believe their past success history will carry them to the future are fooling themselves (Just ask bookstores, mail order catalogue companies, TV repair businesses, retail travel agencies…)
Risk Management is a verb.
Strategy Without Execution…. is Wasted Thought!