Service Industry

Service Industry

COVID-19 virus has spread to all continents except Antarctica, infecting people in many countries around the world. As the virus spreads, the society, economy and business are being impacted.

How to minimize impact of the epidemic on business, its performance results and, most importantly, on employees – these are the main issues of concern for every company leader.

A recent Deloitte survey conducted among over 1,000 respondents from companies operating in China shows that the epidemic will adversely affect sales volume and cash flows as well as the ability to serve clients/consumers and manage business. Significant risks also include ensuring the safety of employees returning from vacations and business trips, difficulties related to supply of raw materials, lack of tools for organizing remote work.

Company executives also point out that COVID-19 will have an impact on performance efficiency of organizations: 46% of respondents expect a reduction in performance targets in 2020.

So what measures can be considered most important and appropriate? Based on the results of Deloitte's research conducted in similar situations in the past (particularly, during the SARS epidemic), we recommend taking a number of measures.

Companies should consider the possibility of establishing a dedicated cross-functional team (a business response and continuity office). The appropriate cross-functional team could coordinate the activities of different business units, monitor and provide the necessary information to senior management team for further communication with employees, customers, and partners.

It is high time to analyze the critical roles and key positions, as well as to determine a team of interim successors in case of force majeure. Top management is often away on business trips and there is an increased risk that some employees may not be available in the office due to a quarantine or illness. The companies should develop an effective process of management decision making under various scenarios.

Determine how your company is going to ensure the safety of employees who have to be at work and cannot work remotely (e.g., shop assistants, cashiers, drivers, etc.). The companies are reviewing their policies for maintaining good hygiene in the workplace, providing disinfectants, etc.

Analyze the priority of your company's projects: focus your teams’ efforts on the most important and critical tasks. Allow more flexibility with low-priority tasks. We have the best counselor, The best strategy maker and the best planning. Please contact us to fix a meeting with our experts' team.