Recovering from a pandemic
From tapping into the lessons learned in the aftermath of massive economic shocks such as 9-11 to the importance of company culture, a group of business leaders is offering advice on navigating a post-coronavirus economy.
The Central Economic Development Agency’s Te Aho Ta¯maka Manawatu¯ Leaders are sharing their expertise in a series of fortnightly webinars running until mid-july.
Business was hit hard by the lockdown and Manawatu¯ Chamber of Commerce figures show a $57 million drop in spending in Palmerston North in April. The only retail sectors that didn’t see a 90-100 per cent drop in income were food retailers, which took in $34m, 17 per cent more than last April, and petrol stations, 65 per cent down from last year at $3.5m.
Agency chief executive Linda Stewart said the seven businesspeople involved in the series were Manawatu¯ success stories, with a wealth of experience to share on navigating companies through global disruption.
The series began with a talk from Linda Jenkinson, who grew up on a farm near Palmerston North and went on to become the second Kiwi to list a company on the Nasdaq stock exchange in the United States.
Jenkinson is a globe-trotting entrepreneur who serves on corporate boards, including Air New Zealand and as chairwoman of a $2 billion super fund. In 2001, she owned and ran a digital concierge company, offering support and service for American banks’ top customers. After September 11, half her company’s revenue was wiped out virtually overnight as banks ditched concierge services to focus on security.
Jenkinson said coronavirus hit the global economy even harder, but in some ways it was simpler to deal with because everybody was affected.
Jenkinson said when a big crisis hit it was important to be pragmatic.
Business owners needed to move quickly and decisively to lay off staff and end contracts the company could no longer afford.
‘‘It’s terrible having to let people go. It’s often people who’ve been really loyal and with you for years... but you have to be honest.’’
Jenkinson said if business owners communicated clearly and often they could preserve relationships and the company. Once the worst was over business owners could look to the recovery and, hopefully, eventually rehire some of those employees.
The next webinar, running today, is about responsible corporate decisionmaking in a post-coronavirus world, hosted by former Adidas chief financial officer Robin Stalker. Stalker’s career has taken him from Palmerston North to Asia, America and Europe. He is on the supervisory board of Germany’s second largest bank, Commerzbank AG.