PwC: 6 areas of organisational focus after COVID-19
COVID-19 Tips / 18.05.2020
According to audit and assurance, consulting and tax services company, PwC, organisations need to start making a shift in a post-COVID-19 scenario.
PwC indicates that organisations need to start mobilising during this time, stabilising in a new environment, and strategising regarding the way forward.
Here are six tips on managing organisations in a post-COVID-19 environment.
1. Crisis management and response
The COVID-19 pandemic entails many unknown variables. This is why current business continuity plans may need to be revisited in order to stay abreast of emerging developments.
Here’s what your organisation may consider doing during this time:
1. Develop crisis-specific incident management and scenario plans
2. Communicate effectively and factually to all stakeholders
3. Meet government priorities and try to reduce the risk of business disruptions.
Remote work is becoming increasingly common and organisations may want to review travel rules, HR policies and first-aid plans.
Another area related to your workforce might be assessing your remote working strategies.
This may require taking a closer look at your current IT and communication infrastructure to support remote working conditions.
3. Operations and supply chain
If you’re operating a global business, you can begin to ease supply chain distributions by identifying alternative supply chain scenarios, focus on substitutions related to your raw materials, and adapt pricing strategies as well as allocations made to customers.
4. Finance and liquidity
You’ll be aware that financial markets often watch and observe how companies react to crisis situations.
Therefore, disclosure related to your liquidity, strategy going forward as well as risks and uncertainties will be a relevant point for consideration during this time.
5. Tax, trade and regulatory
According to PwC, “it is critical that tax functions consider the broader economic, political and societal context you operate in, in order to make informed and compliant decisions that drive your operations forward.”
As an organisation operating during this difficult time, some tips for you to consider are:
- getting relevant tax refunds whilst managing cash taxes;
- considering local government and tax authority measures which respond to the pandemic;
- take actions that stabilise supply chains “while bracing for an unpredictable revenue and profitability mix;
- evaluate your company’s resources which will be necessary to meet both direct and indirect tax compliance requirements;
- explore opportunities focused on becoming more flexible” in an increasingly uncertain environment.
6. Strategy and brand
Many companies will be making a shift from reacting to mitigating the impact of COVID-19.
As a result, you may consider “accelerating digital transformation” which takes into account and tends to reveal gaps in IT infrastructure, workforce planning and digital upskilling. You should also undertake scenario planning as well as regular financial modeling exercises “to improve resiliency”.
Finally, “take the pulse of your customers”, taking into consideration longer-term factors around shifts in core markets or business models, which are a direct result of COVID-19.
Where your focus should lie in the months ahead
According to PwC, COVID-19 is a pandemic that continues to evolve.
Organisations and global businesses will want to take precautions and the relevant steps to mitigate the impacts of this health problem.
With the six abovementioned focus areas, you’re likely to better address and minimise the impacts of the pandemic on your business.
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