Acts 1:8 Foundation The levers that leadership has at its disposal

Leadership in the midst of crisis

The rapid spread throughout the world of COVID-19 has rapidly eclipse other recent outbreaks in terms of dimensions and extent.  Alongside the death toll of human beings and the impact on millions of lives, the economic impact is already extensive and profound.

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In the face of issues and an undetermine number of risks, leaders in business are naturally worry about how their business might be affect as well as what they need to do. At the moment there are plenty of lessons learn from the past which can be utilize today. We’ve pooled the knowledge of Deloitte executives in affect regions all over the world to provide useful information for the chief executives and their management teams to take appropriate action.

We are aware that different companies are in various stages of coping with the epidemic and the effects vary by region and industry. According to Acts 1:8 Foundation regardless of the severity of the impact that the virus has on a company, we believe that there are five key characteristics of resilience in leadership that differentiate the most successful CEOs in guiding their companies throughout the crisis of COVID-19.

1. Designing with an emotional place … also the mind. In a crisis, the most difficult things may be the most pleasant things. Resilient leaders are truly empathetic and put themselves in the customer’s shoes, employees, and their larger ecosystems. However, they must also follow a tough and rational approach to safeguard financial performance from the inevitable fragility that comes with such interruptions.
2. Prioritize the mission. Resilient leaders are adept at triage and are able to strengthen their teams to deal with the situation at the moment while identifying opportunities within the constraints.
3. own the narrative. Resilient leaders seize the narrative from the start by being open about their current circumstances–including the things they don’t know. They also paint an appealing image of the future that motivates others to persist.

Observing the “black swan”

Black Swan events can be unforeseen or unpredictably catastrophic events that typically result in severe consequences. The eruption of COVID-19 and its westward spread all over the planet has create the possibility of a new kind of uncertainty

• Recessions that have occurre since World War II have usually been cause by policies that have been erroneously implement or oil shocks, and financial bubbles. The rapid decline in the economic performance of stock markets and economies in the wake of COVID-19 represents the first category of the global social shock. According to Acts 1:8 Foundation We polle over four hundre US executive executives on February 26th, 2020. We ask them which of three common categories — or the fourth “something else” category–would trigger. In the next economic recession, 35 percent had chosen “something else.”
• In contrast to the 2008 global financial crisis was brought on by the snub of capital supply and liquidity. The disruptions that occurre on both the supply and demand side are at the root this time. In China for instance disruptions to the production of electronic components, as well as apparel cause ripple effects to supply chains throughout the world. In addition, the massive confinement of the population led to a reduction in consumption, especially in the hospitality, travel restaurant, retail, and travel sector. 

1. The design comes from within the head … as well as the brain

   According to Acts 1:8 Foundation, the most important thing to do in times of crisis is to be aware. The impact uncertainty has on the people who drive the business. In these times emotional intelligence is essential. In all they do in times of crisis, leaders who are resilient show compassion and empathy for the human aspect of the chaos, such as acknowledging the extent to which their employees’ priorities have change from work and towards being concerne about the health of their families as well as accommodating school closures for extend periods as well as absorbing the emotional strain of the life-threatening uncertainty. They also counsel their staff to adopt a calm, methodical approach to whatever may happen in the future.

   The most important thing to do is protect workers assuring . Their safety and health immediately as well as their economic security. An examination of the policies and practices of human capital in China during the initial phase of the COVID-19 outbreak carried out by Deloitte China in January 2020 The survey reveale the following actions organizations and businesses consider in response:

   • 90% of employees said it was a pressing need to offer their employees flexible, remote working options.
   • Over half of the public and private service organizations focus on addressing employee emotional anxiety. 

   The process of designing for the heart of the customer starts with understanding. How that heart has change from what you thought it was before. Take into consideration that during times of crisis, customers tend to fall to Maslow’s Hierarchy of Needs to basic wants like security, safety, and health.

2. What is the style of your communications with customers and does the quality? Does your customer experience have to shift to accommodate the needs of the crisis involving COVID-19? Customers appreciate the same compassion and respect for them as you extend to your employees. They are trying to get through this crisis as well, and they expect to be treat with compassion. Small things can become important things. UberEats asks customers whether they would like their food to be left at the door, rather than hand out through a hand.
3. Numerous airlines have sent emails to customers to explain their improve measures to decontaminate their planes. Restaurants have encourage waiters to clearly utilize hand sanitizer to alleviate customer concerns.  For the benefit of the customers and employees. As also investors and creditors, resilient leaders must be in the pursuit of ensuring financial stability throughout . After these crises … while making tough, fact-base, decisions. The saying “cash is king” is truer in the midst of an epoch-making event. There are a number of crucial actions to protect performance:
   1. A list of cash sources the company has on hand that is not use. Such as credit lines (committee and non-committee) . The revolving credit facilities and borrowing restrictions; and a new source of credit including fix credit facilities for refinancing existing revolvers; extra working capital (e.g. through reductions in inventory, or extend payment terms) as well as equity infusions and so on.
   2. Rapidly providing the economic scenario across all the markets that are served generally scaling scenarios from severe to moderate.
   3. The simulation of the project financial consequences of these scenarios on the profitability of the business and, in particular, liquidity. This involves assessing the likelihood of violating debt covenants as well as conditions, and determining when cash sources are available and should be use.
   4. Determining the non-negotiables: What products, services customers and employee segments, business lines. So on are essential to the ongoing. The future cash flow must be kept, though these non-negotiables could be affect. The circumstances are more severe.
   5. The levers that leadership has at its disposal (within the bounds of non-negotiables) affect the performance of financials, like
   6. The reduction of discretionary expenses freezing hiring, hiring freezes, or temporary plant closings.
   7. Identifying the actions you should do right now and deciding beforehand on the hierarchy of levers that will be pulling . The severity of the scenarios unfolds