Yes, the COVID-19 crisis is hurting Canadian businesses - but there’s a way forward

While it’s not entirely true that nobody saw COVID-19 coming—for years, epidemiologists have been warning us about the next global outbreak—it still caught business leaders by surprise. And of course, they’re not alone.

In 2019, PWC conducted the annual Global Crisis Survey, polling over 2,000 companies around the world to find out what types of economic emergencies business leaders were bracing for in the next year. Overall, the top forecasted challenges were financial, technological or operational—only a tiny fraction (7%) of respondents expected the next big crisis to be humanitarian. Like the world at large, our business community has been overwhelmed, reacting to the impacts of the pandemic as things evolve day-to-day. It may feel touch-and-go, but that doesn’t mean there isn’t time to establish a strategic plan of attack. Pwc’s Crisis Management approach outlines three core steps for managing through this pandemic and positioning your business to weather future crises down the line.

1. Mobilize

The first step you can take in this process is providing transparent, consistent and fact-based information on your policies, initiatives and where your business sits within the bigger picture.

• Your employees need to know whether their jobs are secure and your customers want to know how your operations might be impacted.

• You should also inform other important stakeholders like your investors, board members and important vendors of your immediate plans of action.

• Misinformation only makes a crisis worse. Your company messages should come from a single, trustworthy source, such as the CEO or a customer’s point of contact and should be aligned with your company’s values. For broader coverage of the crisis, encourage your community to follow credible news sources.

2. Stabilize

Stabilizing means planning how to operate productively and successfully in this new socially-distanced world, (regardless of how long it lasts).

• Engage with your critical vendors, whether they’re suppliers or merchandisers, and make sure you know what their plans are for the days, weeks and months ahead.

• Fiscal discipline is critical, so monitor discretionary spending and take initiative with showing your investors, lenders and banks a coherent and adaptable plan for moving forward.

3. Strategize

The pandemic is encouraging businesses to discover strengths they didn’t know they had. Whether it’s the ability to take swift and decisive action on short notice, or leverage technology to keep your people positive, supported and connected, these are all capabilities that will benefit your company long-term.

• Your new operations may lead to more streamlined, efficient and cost-effective business models.

• This is an opportunity to exit markets or discontinue products that weren’t profitable enough.

• You can prepare for conflicts and contract disputes that may arise once the crisis has passed.

• If a business you were interested in acquiring has been materially impacted, this may be the right time to have conversations around M&A.

In spite of the unprecedented risks brought about by COVID-19, we’re seeing business leaders across our community rise to the occasion by stepping up, figuring out how to best serve their customers and finding unique ways to optimize and streamline their operations. At PWC, we want our business community to come out of this even stronger— and we’re here to help see you through. Please get in touch if you’d like to discuss the steps your company can take as you continue to manage through COVID-19, and plan for your future.