A Gartner survey found that 28% of managers see the pandemic as an opportunity to reassess processes.
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The COVID-19 virus has become a retaining wall for economic activity and has caused business incomes to drop alarmingly. Given this panorama, the managers of the companies concerned had to make decisions to ensure this business survival.
A few weeks ago, consulting firm Gartner conducted a study of the impact of COVID-19 on businesses and the decisions managers need to make to help their organizations survive. At the beginning of April, financial managers mainly dealt with cash flow. At the end of the month, this scenario changed due to the recession caused by the pandemic.
According to the study, most companies expect EBITDA to decline more than 10% this year compared to 2019. In terms of sales decline, 24% of respondents expected a decrease between 11 and 24% and only 5% believed they were Would decrease EBITDA by 50% or more.
“We believe that business income will return to normal in the first months of 2021. However, there is no complete clarity as this situation surprised everyone. Therefore, the decisions executives make today are critical to the survival of their businesses, ”said Courtney McColgan, CEO and founder of Runa.
According to Runa, a platform for automating payroll accounting, companies had to cut costs and innovate their business model. Some of the measures that managers have taken are:
Image: Roberto Nickson on Unsplash
If a manager was unsure about the home office, these weeks of social distancing were the ideal test environment to see his employees adapt to this way of working and their results.
According to an article by Harvard Business ReviewEmployees who work from home are happier and more productive for companies than those who worked in the office during the study period. Only in Mexico City, according to Coparmex, has the home office increased productivity by 28%.
For this reason, many managers need to consider maintaining this type of work regardless of the pandemic outbreak.
Image: Matthew T Rader on Unsplash
Despite low incomes and the pressure to cut costs, business leaders have also recognized the opportunities that arise from this situation. These include, for example, the digitization of your business model, the use of quarantine for the reassessment of processes and the identification of new areas of opportunity.
The same Gartner survey found that 28% of managers see the pandemic as a process reassessment, while 19% believe that faster digitization is another positive side of the crisis.
Think about the future with the virus
Image: Yassine Khalfalli on Unsplash
58% of respondents in the same study said they were considering a second wave of COVID-19 in their future scenarios.
With no date for the end of the pandemic, managers face the challenge of reconciling declining earnings with rising costs. Therefore, their first concern is to keep the organization afloat during the months of COVID-19.