Business Continuity Advice

From: McKinsey & Company's March 2020 Executive Briefing

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Companies are responding to the outbreak with five sets of actions.
Supply-chain stabilization

Workforce protection B D Customer engagement

A Nerve-center integration A E Financials stress testing

5
 A Nerve-center integration
“Issue map” and management
 Single source of truth for issue resolution and ensuring surge
resources where needed

A
Portfolio of actions
 Trigger-based portfolio of actions across all work streams

Leadership alignment
 Alignment of leaders on scenarios
 Roundtable exercise
Workforce policies On-site work norms
B
 Policy 2 pagers  Staggered work times
 Escalation criteria/call trees  Social-distancing norms
 Portfolio of actions  Health checks
 Preventative actions  Productivity ideas

2-way outreach Issue management

 Multichannel communications  Issue map
 Confidential feedback/reporting channels  Clear resolution owners and deadlines

Contractor management Stakeholder engagement

 Contractor policy alignment  Local/federal-regulator and public-health-official engagement
 Confidential feedback/real-estate-contractor incentives

Work-from-home support
 3-tier split (ie ,all ,some ,or no work from home)
 Infrastructure setup (eg, virtual private network, telephony, Workforce protection
broadband)

7
CSupply-chain Supplier engagement
 Cross-tier risk transparency
Logistics
 Ports

stabilization
 Supplier restart  Logistics-capacity prebooking
 Order management  Route optimization
 New supplier qualifications

Inventory management Demand management

 Critical-part identification  Sales and operation sku-level
 Part rationing demand signal estimates, by
macroscenario
 Location optimization
 Production
 Sourcing plan

8
 Customer engagement

B2B transparency Customer protection Customer outreach

 Communications to B2B  Prevention interventions  Customer communications on
customers (E, on microsites) across customers journeys COVID-19 practices
 Scenario-based risk  Customers-team training  Fact-based reports on issues

D
communications  Execution monitoring  Situation communications

9
 Scenario definition
 Relevant scenarios based on latest epidemiological and
economic outlooks
E
Financials Financials stress testing

stress testing  Financials in different scenarios, especially working-

capital requirements

10
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