Introduction and Overview
As a result of the impact of the Covid-19 Pandemic, businesses were forced to rapidly adapt to compensate for the impact of the disruption caused by the pandemic.
This led to the creation of radical new business models and practices, many of which have been so effective that many companies have carried them forward into their businesses standard operating processes post-pandemic.
Keeping their finances strong was the top priority for the majority of businesses during the pandemic. For many, cashflow management and forecasting required urgent attention, to maintain liquidity & even their survival.
This led to the creation of cashflow management and short-term cashflow forecasting techniques that are still in use by many businesses and that has significantly improved their ongoing cash and overdue-debtors-management.
The good news is that many businesses around the world, including in Australia and New Zealand, are continuing to achieving significant benefits using these new business models and practices which are revolutionising the way companies operate. To realise these potential benefits however, businesses need to be faster, bolder, and more agile than ever before.
Even now, in mid-2024, Covid 19 is still continuing to disrupt supply chains worldwide, with the war in Ukraine and international political uncertainty adding fuel to the uncertainty and disruption.
Trade restrictions, factory closures, rising freight rates and reliance on ‘just-in-time’ inventory systems have led to global shortages and inflation. The disruption to supply chains has become more widespread, growing from an industrial problem to a threat to economic stability
In hindsight, we were fortunate that both Australia and New Zealand were more successful in containing the virus than any other developed countries. This was possible because as Island Nations we were able to shut our borders to the outside world; but the economic cost of doing this was enormous.
Now that virtually all restrictions have been lifted locally and by most developed nations, the impact on businesses has eased, although Covid 19 is still happening world-wide, and the more serious version. commonly known as “Long-Covid”, is still rife, causing staff shortages in key health-care management facilities, food & beverage and retail businesses.
It is clear that uncertainty is still high, so the need for businesses to maintain and strengthen their business resilience will continue to be crucial.
I have studied articles published by world leading consulting and accounting businesses, which has enabled me to create a comprehensive program to help businesses to understand and implement the elements that will work well for them, including business resilience and a comprehensive cashflow management and forecasting module, that has worked well for a number of my consulting clients.
There are 4 main types of business resilience that companies need to optimise and manage:
- Financial,
- Operational,
- Commercial and
- Community Resilience.
I have provided a brief overview of each of those below.
In each of those 4 areas of your business you should also be considering adopting Agile practices, creating cross functional teams of high performers from each function on a project-by-project basis with a clearly defined outcome and a rapid timetable for completion.
An important type of project to consider is the Digitisation of some of your systems & processes.
1. Financial Resilience.
The impact of covid 19 dramatically highlighted the importance of financial resilience.
Keeping their finances strong has also required firms to adapt existing financial frameworks to suit a more volatile environment in which profitability, cashflow and access to funding will continue to be under ongoing pressure
There are 3 key elements in creating strong financial resilience in your business:
1. Cash Management and Stress Testing,
2. Liquidity & Financing
3. Financial Crisis Response & Contingency Planning
2. Operational Resilience.
The majority of businesses have had their delivery models, supply chains, people, technical and physical infrastructure impacted to some extent. They need to continue to manage these challenges, whilst concurrently still employing proper governance, risk management and control measures.
3. Commercial Resilience
Commercial resilience is also an ongoing issue as sales & marketing teams assess the impact on sales from ongoing changes in B2B customer behaviours & demand for your products, whilst at the same time assessing the resilience of their own brands.
4. Community Resilience.
Concern for our communities has been of paramount importance. While many government measures have been put in place to help businesses, institutions and individuals through the crisis. businesses also have an important role to play in their community’s health and well-being.
So, as we move towards the new reality of how our businesses can and should operate in the future, we will need to build and maintain our overall Business Resilience
To be part of this future, businesses will need to build their Business Resilience. Not only for the current crisis, but also for the inevitable uncertainty and challenges yet to come.
The impact of climate change, is the most critical challenge we will face over at least the next 28 years up to 2050. Whilst the reality of climate change is now clear, and with Australia being one of the most severely impacted countries in the world, with unprecedented fires and more rain in recorded history in the last 12 months causing major flooding of rural towns and our capital cities , world leaders have set targets for emissions reductions by 2050, but at current rates of progress we are already way behind our targets.
The rate of change will need to accelerate, and this is being increasingly embraced by a growing number of individuals, businesses and institutions that are environmentally aware and also see the entrepreneurial opportunity that the urgency for action is creating.
There are also many new businesses being created in the health and well-being industries, utilising the new technologies being created that are changing the face of the health industry and patient treatments and solutions.
So, is your business ready for the New Reality?
Whilst for many businesses this will mean strengthening their business resilience, for the more fortunate businesses, that have the means to do so, to take advantage of the situation in your industry to develop and implement a strategy to consolidate your position.
Conclusion
If you believe that the Business Resilience Program might be valuable for you, to provide you with the knowledge, and skills you will need to become more resilient than ever,
or alternatively to take advantage of the situation in your industry to develop & implement a strategy to consolidate your position:
You can book a Free 20-30 minute strategy call with me personally in my calendar, so we can discuss whether working with me to implement this program would be the right option for you at this time.
Book a Free 20-30 Minute Strategy Call with Me
You will receive an email confirmation and a reminder from my booking system prior to the meeting.
Or alternatively, message me in LinkedIn, or just send me a text message with heading “Business Growth Plan”, and your first name, and I will call you back within 24 hours to arrange a time for an initial chat.
My mobile number in Australia is 0418 277 137.
My business email address is: [email protected]
I look forward to talking with you.