Johnson Conley

Leadership is a Matter of Performance

Category: Business Resilience

Business Resilience

Is Radical Localism the Answer?

Apr 23, 2020 #Business Continuity, #business resilience, #Disaster Recovery, #Resilience by Dennis Conley

The pandemic has impacted all firms – some positively and other negatively. Firms that planned in advance for resiliency have better chances for survival. Supply chains have been strained and suppliers have had mixed results in their ability to deliver. We’ve already seen some companies fail and some leaders lose their jobs due to the lack of preparedness for the pandemic. In addition, the pandemic has proven the importance of effective supply chains as a factor for business resiliency. The question remains – is radical localism the answer?

We recently conducted a survey of business leaders to understand what firms plan to do regarding business resilience, post pandemic. Our survey confirmed that business leaders plan to revisit business resilience and their supply chains once the pandemic abates. Our survey also confirmed the likelihood of third party auditors expanding their focus to include supply chains and business resilience in their reviews, especially in rendering going concern opinions. In all cases, firms are planning to review and adjust their supply chains. None expressed plans for radical localism.

In the article, “Putting Values Above Valuations,” (complimentary access available) Mark Carney, the former governor of the Bank of England, provided his insights and observations:

  • Local resilience will be more important than global efficiency.
  • Supply chain failures have negatively impacted cash flow.
  • Companies will change how they balance risk and resilience.
  • There will be lasting consequences from unemployment and a lack of accessible healthcare.

When we exit the pandemic, firms will need to institutionalize the changes they’ve made and recalibrate their supply chains. Expanded geographic diversity, deploying alternate processes and increased use of automation will all be considered as supply chains are retooled to minimize risk and to improve business resiliency.

Radical localism is a knee-jerk response. We live in a global economy and a global solution will prevail. That said, supply chains must be recalibrated as firms address risk and resiliency.

Be safe and be well!

p.s. We’ve developed a diagnostic to assess business resiliency. This assessment could be a valuable addition to your after action review. Please let us know if you’d like to learn more.

Business Resilience

COVID-19 – What you can do now

Apr 3, 2020 #Business Continuity, #business resilience, #coronavirus, #COVID-19, #Disaster Recovery by Dennis Conley

We hope this communique finds you safe, albeit struggling with what COVID-19 has wrought. Our prayers go out to those who are suffering. We’re working from home, practicing social distancing and limiting our physical contact with others. People and firms are facing issues they never anticipated. These are unprecedented times – but we will all make it through this pandemic.

Over the past few weeks, we’ve been talking with a number of firms. What we’ve heard is that companies have faced many unanticipated challenges. We’ve also learned that through it all companies are doing their very best to accommodate this new abnormal. While it’s premature to start our after-action planning, we want to share with you something that you can do now. Take notes. Keep a diary of issues you’re running in to. This information will be valuable when we exit this crisis. Your journal should include:

  • Document how your workforce responded to the crisis. Were there insurmountable staff issues? What lessons did you learn about the most important resources for your firm – people?
  • Document how effective your work from home program is. What did you learn? We’re you prepared to deploy? What surprises did you encounter? How were you able to convert your remote workforce back to an office setting (when that occurs)?
  • Document how your supply chain (products and services) performed. What interruptions did you encounter? Who rose to the occasion and who answered beyond the call? How did you adjust?
  • Document how your policies and processes supported your pandemic response. What policies and procedures did you use? What processes and methods did you have to replace or discard?
  • Document where you had to increase your spending. Were the increases reasonable? Did you come up with ways to avoid increased spending?
  • Document the impacts to your brand, image and reputation. How did you respond?
  • Document what regulatory hurdles you’ve encountered. Did you face fines, penalties or sanctions?

This information will be valuable input for your after-action planning. If you’re like me, taking notes is the best way to recall situations of the past.

These are tough times, but we’ve shown extraordinary resilience in the past and – our response is and will be no different this time!

Stay safe and be well!

Business Resilience