RETHINK – NAVIGATING THE NEW REALITY:
It is accepted that the world will change as a consequence of COVID-19 and businesses need to imagine this ‘new reality’ as early as possible - and rethink how they will be positioned in it.
RETHINK is BDO’s global framework encouraging a broad rethink around original business models and commercial assumptions. It can be used to manage business priorities, address issues and leverage thinking, acting
as an extra dimension for strategic level consideration and discussion, regardless
of where in the cycle an organisation sits,
or the measures already taken.
How to build RESILIENCE throughout the prevailing business environment: Safeguarding vital elements of a company where necessary.
How to REACT to the crisis: ensuring that measures are taken to secure business survival
in the short term.
look forward to REALISE the future benefits of sensible business decisions, taken calmly and pragmatically.
PLAN FOR THE LONGER TERM:
THE NEW REALITY:
Applying the learnings from key
REACT and RESILIENCE activities and
continuing to adapt. Successfully adapting to
new business models and the ways of working needed to address essential and obligatory political, economic, socio-cultural and technological changes.
SUCCEEDING IN THE NEW REALITY
EMBEDDING RESILIENCE AND KEEPING YOUR BUSINESS RUNNING
SAFEGUARDING YOUR BUSINESS
ANTICIPATE AND RESPOND TO FINANCIAL PRESSURES: 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 a company’s customers.
Running the business in ‘lockdown’ / reduced
demand and supply
Operations are adjusted and optimised based on
Business is under control and employees are safe.
Capital structure is solid
Regulatory compliance maintained and scenario
planning is underway using economic and customer data.
Future state and business needs are anticipated.
The new reality of demand and supply is
established in the business
Areas for transformation are clear and adaptation is underway
Business is meeting or exceeding market
Interpret & understand events:
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.
DEAL WITH THE EMERGENCY:
The way in which a company responds
to the initial impact of the COVID-19 crisis, minimising the catastrophic effects on its business operations, employee safety, supply chain and ongoing financial viability.
The 3 stages
of the model are REACT, RESILIENCE & REALISE:
There are no simple answers – and so these three stages can be considered separately -
to help organisations manage their business priorities and address the issues they are facing in the ‘here and now’ - or as a part of an overarching roadmap to help manage the COVID-19 impact over the medium- to long-term.
Companies will need to anticipate critical changes that will impact their business operations and value chain and above all, the Rethink model is a framework for re-evaluating the future. It provides a practical approach through which BDO partners can work with our clients to assess the issues they are likely to face
throughout the COVID-19 pandemic and
help them plan to recover and optimise
operations in the short to medium term, in an
effort to achieve some form of normality.