PLANNING FRAMEWORK PIVOT TO DOMESTIC - CHRISTCHURCHNZ WEBINAR SERIES 11 JUNE 2020 - ChristchurchNZ.com
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PLANNING FRAMEWORK PIVOT TO DOMESTIC – CHRISTCHURCHNZ WEBINAR SERIES 11 JUNE 2020 PHILLIP ROTH & RHEA COWELL BDO CHRISTCHURCH
RETHINK: RE-EVALUATING THE FUTURE
We are all aware of the effects of Covid-19 on our employees, organisations, whānau, across
networks, clients – and our economy as a whole.
When ‘normality’ ulitmately returns, what will it look like? And what will it mean for the
ways in which businesses used to operate?
BDO has developed a global three-stage process, which encourages a broad ‘rethink’ around
original business models and commerical assumptions, and that can be used to manage
business priorities, address issues and leverage thinking:
1. React
2. Resilience
3. Realise
There are no simple answers – and so these three stages can be considered separately to help
you to deal with the ‘here and now’ or as part of a roadmap help manage the Covid-19
impact over the medium to long-term.
The purpose of this document is to provide you with a framework across key areas every
organisation should consider in anticipation of the crisis abating and identifying how to boost
resilience and recovery.
2
RETHINK: RE-EVALUATING THE FUTURE
Rethink acts as an extra dimension for strategic level
consideration and discussion regardless of where in the cycle you
sit, or the measures and actions already taken.
You will need to anticipate critical changes that will impact your
business’ operations and value chain.
This could be as a direct result of initial actions to ensure ongoing
business resilience at Level 4, as well as planning to recover and
optimise their operations in the short to medium term in an effort to
achieve some form of normality.
However, it is accepted that the world will change as a consequence
of COVID-19, therefore, businesses need to imagine this “new world”
as early as possible and “rethink” how they will be positioned in it
DEAL WITH THE ANTICIPATE & RESPOND TO
THE ‘NEW NORMAL’
EMERGENCY FINANCIAL PRESSURES
INTERPRET / UNDERSTAND
SUSTAIN OPERATIONS PLAN FOR LONGER TERM
EVENTS
3
EVOLUTION OF BUSINESS ISSUES BY STAGE
This Framework has been provided to support you to consider the principal areas of focus for your business,
noting what action you have taken already and where decisive action is still required.
4
• REACT Beginning of the downturn. Initial risks are assessed. Immediate crisis management actions are required to ensure employees are safe and healthy, capital is adequate, and suppliers and customers are closely connected with the business. Planning is based on Government policy, guidelines and support. The way in which companies respond to the initial impact of our current environment, minimising the catastrophic effects on its business operations, employee safety, supply chain and ongoing financial viability.
REACT
Pain Points
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Employee health Crisis Management & Supply chain Liquidity & Regulatory Response &
REACT & safety Customer Retention continuity Cash flow Policy Development
6REACT
Considerations
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Employee health Crisis Management & Supply chain Liquidity & Regulatory Response &
REACT & safety Customer Retention continuity Cash flow Policy Development
7•
RESILIENCE
Running the business in ‘lockdown’, from your bubble with a reduced demand and
supply. Operations are adjusted and optimized based on customer demand. Business
is under control and employees are safe. Capital structure is adaptable. Regulatory
compliance is maintained and scenario planning is underway using economic and
customer & market data.
Maintaining business operations during ‘lockdown’ disruption using techniques
that allow people, processes and information systems to adapt to changing
patterns. The ability to alter operations in the face of changing business
conditions preserving the continuity of the provision of ‘critical functions to
your customers and market.RESILIENCE
Pain Points
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Workforce Planning & Customer Acquisition & Supply chain Cost Optimisation & Regulatory Compliance
RESILIENCE Productivity Recession Proofing optimisation Financial Hardening
9RESILIENCE
Considerations – Part 1
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Workforce Planning & Customer Acquisition & Supply chain Cost Optimisation & Regulatory Compliance
RESILIENCE Productivity Recession Proofing optimisation Financial Hardening
10•
REALISE
Meeting and agreeing acceptable market growth rates. Channels to
market continue to grow and indicators of the ‘new normal’ are
starting to establish themselves.
Applying the learnings from key ‘React’ and ‘Resilience’ activities
and continuing to adapt. Successfully adapting to new business
models and ways of working needed to address essential and
obligatory political, economic, socio-cultural, and technological
changes.REALISE
Pain Points
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Strategic Hiring & Performance Improvement Supply chain Resiliency Growth
REALISE Talent Retention & Innovation Engineering Financing
Intelligent Compliance
12REALISE
Considerations
PEOPLE STRATEGY & RISK FINANCIALS REGULATION
OPERATIONS
Strategic Hiring & Performance Improvement Supply chain Resiliency Growth
REALISE Talent Retention & Innovation Engineering Financing
Intelligent Compliance
13KERIKERI FOR MORE INFORMATION CONTACT: This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance
only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the
WHANGAREI PHILLIP ROTH information contained therein without obtaining specific professional advice. Please contact the BDO member firms in New
Advisory Partner Zealand to discuss these matters in the context of your particular circumstances.
AUCKLAND BDO Christchurch
WAIKATO e: phillip.roth@bdo.co.nz BDO Christchurch Ltd and each BDO member firm in New Zealand, their partners and/or directors, employees and agents do not
m: +64 27 227 8918 accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on
TAURANGA the information in this publication or for any decision based on it.
ROTORUA RHEA COWELL BDO New Zealand Ltd, a New Zealand limited liability company, is a member of BDO International limited, a UK company
Senior Strategy Analyst limited by guarantee, and forms part of the international BDO network of independent member firms. BDO New Zealand is a
GISBORNE BDO Christchurch national association of independent member firms which operate as separate legal entities.
e: rhea.cowell@bdo.co.nz
HAWKE’S BAY m: +64 21 309 479 For more info visit www.bdo.nz
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