Four weeks ago, the business world looked much different. The Dow Jones Industrial Average was above 27,000, the national unemployment rate was 3.5%, and the Consumer Confidence Index was above 130 (100 signals a positive outlook toward the future economic situation). Businesses continued hiring people, pumping money into research and development, and building new facilities. People walked into a grocery store and found toilet paper, they planned summer vacations, and they started researching for our March Madness brackets. Yes, Coronavirus was in the news, but it had not hit the United States like it had China, Italy, or some other nations.
In what felt like an instant, the economy plunged, business hiring froze, and people stood in disbelief. My how different today looks compared to one month ago! Today, many Americans seek unemployment benefits while businesses figure out what they will do to survive the next few months.
Over the past couple of weeks, I spoke with several business leaders and owners building plans to comply with new laws, regulations, and orders; not to mention how to control costs and keep cash flowing. These are big questions demanding timely answers.
It is important, though, that decision-making considers long-term business objectives. Yes, short-team realities exist, but there is a danger of making rash decisions and facing long-term consequences. For instance, if a business decides to layoff ten percent of its workforce now, there is a chance of losing some very talented workers. If a business ignores or does not fully understand or implement new laws and, they risk fines, discrimination charges, or employment lawsuits. Business owners must act swiftly but do so with both short and long term risks/opportunities in mind.
Business owners need to take time to build a plan that clearly defines long-term objectives and build targeted answers to get there. My friend and coach, Krissi Barr, uses an outstanding strategic problem solving tool called “ORCA—for when you have a whale of a problem!” This current pandemic qualifies as a “whale of a problem!” Check out these steps to take when defining long-term objectives.
1. What do long-term OBJECTIVES look like for your organization?
These needs to be clear. During difficult times, clarity is paramount! Defining your objectives first will help you determine what course of action you take related to right-sizing your business, pursuing tax credits or loans, or implementing temporary shut-downs. These things will be part of bigger business plans. All of these decisions should be within a framework of what you need to do long-term for your business.
2. What is your REALITY?
Yes, all businesses face the current COVID-19 pandemic, but each business situation is unique. There are aspects of how you do business that need to be identified considering this pandemic. What are you facing right now that will help you think through answers to move toward your long-term objectives?
3. What are the CAUSES of your reality?
Uncovering what lies beneath many situations is key to understanding the whole picture. Failing to do this can result in misdiagnosing the actual situation and developing mis-targeted strategies.
4. What are the best ANSWERS to achieve your long-term objectives?
Building the right plan requires knowing what is going on (your reality and its causes). Once this is done, it is important to build a multi-faceted plan with specific action steps. Alongside this, it is vital to develop leading and lagging indicators to gauge how you are doing.
In today’s current world, it is more important than ever to build a plan to meet long-term objectives. This may include taking advantage of current tax credits, loan opportunities, and employment-support programs. However, these tools and objectives should flow within the long-term objectives for your business.
Over the next few blog posts, I will explore other areas businesses need to consider as they deal with the current COVID-19 disruption. Hang in there! This will pass! We are in this together!
Need assistance with addressing short and long term HR needs for your business? Contact me at steve.black@brixeyandmeyer.com, and we will address them proactively.
Disclaimer: This blog is not legal advice, but merely informed opinion or general information meant for no particular purpose. Issues addressed in this blog often implicate federal, state, and local labor and employment laws. This blog is not intended as a substitute for legal advice. Readers should consult labor and employment counsel to determine whether their particular policies, procedures, decisions, or courses of action comply with such laws.