Business leaders make decisions every day to address the constantly changing nature of the COVID-19 crisis. We took a snapshot of their response in the eye of the storm—to gauge what actions they’re taking, how they predict the current crisis will differ from the last recession, and what areas of their business will be fundamentally altered in the long run. Here’s what they said.
2-Minute Takedown
Preparedness and response to the downturn is mixed: Only half of C-level leaders say their organization monitors a set of internal and external indicators that initiates a recession plan. 1 in 4 say they haven’t needed to act on the downturn yet.
The speed at which this crisis emerged has created an extreme level of uncertainty. The most common primary concern in the C-suite? The unpredictable behavior of partners, employees, and clients in this environment.
Downturn Readiness & Impact
Remote working has reached a tipping point: The top priority for more than one-third is managing a remote workforce (ahead of cutting expenses). And 42% said the crisis will fundamentally alter their organization's approach to remote working in the long term.
Does your organization have a recession checklist—that is, a defined list of internal and external indicators that initiate a plan of action?
49%
Have you mobilized a recession “plan of action”
at your organization, as of today?
because we don’t have a recession plan
51%
YES
NO
YES
54%
21%
NO
25%
NO
because we don’t need to mobilize one yet
How do you expect the market crisis today
to differ from the market crisis of 2007-2008?
51%
42%
19%
5%
The impact will be deeper
(more difficult recovery)
The impact will be more acute
(shorter recovery)
The impact will be more long-term
(longer recovery)
The impact will be minor
(easier recovery)
Top Priorities & Concerns
What is your organization’s top priority right now?
Effectively managing a remote workforce
Creating new offerings/products that matter to the market
Cutting labor expenses
Cutting other expenses
Managing volatile supply and demand for the next 3-6 months
Recalibrating supply chain due to global impacts
M&A
Other
Of the following, what is your primary concern?
(e.g., materials, real estate, supplies)
39%
1 |
4 |
3 |
6 |
2 |
7 |
8 |
5 |
10%
11%
4%
29%
2%
0%
8%
The unpredictable behavior of partners, employees, and clients in this environment
1 |
4 |
3 |
6 |
2 |
7 |
8 |
5 |
27%
15%
19%
5%
20%
5%
3%
6%
Burning through cash reserves
Supply chain disruption
Having to lay off employees
Other
Losing customers to competitors
My organization’s short-term survival (3-6 months)
My organization’s long-term survival (6 months+)
Fundamental Changes
Looking at the next 3-5 months, which statement best reflects your organization’s primary focus in regard to maintaining corporate values vs. making the right business decisions?
We have to make many business decisions that are contrary to our corporate values
We have to make a few tough decisions that are contrary to our corporate values
Our business decisions are in line with our corporate values, despite the current landscape
19%
78%
3%
How will the current market crisis fundamentally alter your organization over the long term (6 months+)?
It will most likely change our
.
Company culture
Approach to remote work
Crisis management procedures
Supply chain risk/
exposure
Customer mix
Debt position
Other
4%
42%
21%
13%
5%
5%
10%
About the poll
About the respondents
back to top
West Monroe wanted to better understand the priorities and concerns among the C-suite to the market crisis that has emerged due to the COVID-19 pandemic. On March 19-20, 2020, we surveyed 150 C-level executives at companies with a minimum of $250 million in annual revenue. West Monroe is a national business and technology consulting firm.
ABOUT THE POLL
INDUSTRY
TITLE
COMPANY'S
ANNUAL REVENUE
Financial Services
14%
Healthcare & Life Sciences
Consumer Packaged Goods/Retail
Professional Services
Energy & Utilities
Hospitality/Food Service
Information Technology Services
Construction/Mining
Telecommunications
Manufacturing/Industrial
Media/Entertainment
Public Administration/Government
Aerospace and Defense
Other
14%
17%
3%
4%
9%
3%
3%
3%
17%
2%
0%
1%
11%
INDUSTRY
TITLE
COMPANY'S
ANNUAL REVENUE
16%
Chief Executive Officer or President
24%
Chief Financial Officer
15%
Chief Operating Officer
25%
Chief Information Officer
11%
Chief Marketing Officer
9%
Other C-Level
0%
Less than $100 million
0%
$100 million - $249 million
19%
$250 million - $499 million
20%
$500 million - $999 million
0%
Unsure/ Cannot Discuss
41%
$1 billion - $3 billion
19%
More than $3 billion