Uncertainty is a mainstay of modern busi- ness. While we may not be able to predict he future, we can prepare for it. For CEOs and other business leaders, preparationbegins with the acknowledgement that future eventswill occur over which we have no control and forwhich we receive no warning.
During the past few months, we have been forcedto confront COVID- 19 and the enormity of the threatit represents, both to our health and to our businesses. Yet the rise of a global pandemic is but one of themany unknowns for which we must prepare. Theserun the gamut, from economic recession to cyberat-tacks to natural disasters.
Events such as Hurricane Katrina and TropicalStorm Sandy reveal how unprepared many companiesare for such trials. Would you have been? If a naturaldisaster struck your business tomorrow, what wouldhappen in the days and hours that followed? Wouldyou be ready operationally? Logistically? Financially?
Do you have an emergency plan that addresses all of
Preparation begins with cash reserves
the contingencies? Most companies do not, and that
has become obvious.
One of the CEO’s key pursuits is to get and spendmoney in the right way. Often missing from theseconsiderations is how to also save money in theright way.
During the financial crisis of 2008 and 2009, nearlyevery business owner across the United States faceddire circumstances. As the economy ground to a halt,the just-in-time revenue that many businesses reliedupon to fund their operations during times of prosperity dried up. Hardly anyone was buying anything,and even the most loyal customers stopped buyingproducts or using services because they did not havethe money to spend.
Everyone was making difficult decisions at thistime. The businesses that survived often did so largely because of their cash reserves. Nearly everyonetried cost-cutting and layoffs, which helped. But the
LEADING IN ATIME OF CRISIS
During tough times, people look to leaders.
The way you handle crises will have a lastingimpact on the future of your organization.
By Trey Taylor