Coronavirus (COVID-19)

CRISIS MANAGEMENT

Production reduced or halted
due to lack of deliveries, an
increase in sick leave, or
mandated teleworking. Supply
and production chains are
affected. Shortages of some
goods due to the slowdown in
production.
Production
Production
Possible Macro Effects
Companies, investors, and
consumers are unsure of the
future. Longer-term effects on
markets can last for 12-18
months. Risk of global
recession depends on the
severity and effectiveness of
control of the pandemic.
Economy
Economy
Revenue
Revenue
Q2 revenue is affected all over
the globe. Billions are lost in
sales for airlines, hotels and
restaurants. Other service sectors,
consumer goods, and industries
also suffer losses without clear
picture of when sales will return
to normalcy.
Due to mandated travel
Health care infrastructures are
restrictions and social
impacted, due to the lack of
distancing within and between
manpower, equipment, space,
countries, human activities are
and testing. This is system is
limited even where there is
badly effected. Those who seek
will. Export and import of
treatment are not always
goods and materials are delayed
afforded the opportunity to.
or more difficult.
Mobility
Mobility Healthcare
Healthcare
 SWOT Analysis Framework

What are the company’s core

01 02 In what area does the company fall
competencies ? Where does the
behind. A description of a company’s
company have a competitive
development needs.
edge. STRENGTH WEAKNESS

05

CHALLENGE

03 04
What opportunities exist where the What trends or developments would lead to
company can gain competitive sales or profit deterioration in the absence
advantage or perform profitably ? OPPORTUNITIE of defensive action.
THREATS
S

The strategic challenges the company faces both

internally and externally
 Business Challenges

Employees Revenue Mobility

Obligation to health, Insecurity,
Fears, remote work, Reduced work,
Exemptions, Continued payments
of wages Supply Chain
Alternative delivery routes,
Value chain, Standstill,
Delays, Contract disputes,
Effects on customers
Decline in sales, Cash flow, Liquidity
bottlenecks, Government aid or
Financing and Loan issues
Operations
Reduced capacity and resource in core
areas, infrastructure and services.
Breakdown of entire locations
Travel & mobility restrictions,
Travel bans, Quarantines, Effects on
recreational activities or social
interactions Regulations
Compliance Challenges and governments
strict step towards economy, policies,
business, health care systems & more

01 03 05

02 04 06
 Financial Impact Employee Stand-By Days Stand-By Days Daily Financial Impact Financial Impact
Name Used (Today) (Projected) Salary (Today) (Projected)

Test Name N/A N/A $137 N/A N/A

Test Name 38 30 $82 $3,970 $3,740

800,000
Test Name 7 60 $274 $10,260 $15,342

Test Name 39 31 $55 $2,666 $2,512

700,000
Test Name 39 31 $82 $3,999 $3,768
600,000
Test Name 39 31 $123 $5,998 $5,653

Test Name 38 60 $82 $3,970 $4,603

500,000
Test Name 38 60 $411 $19,849 $23,014

400,000 Test Name N/A N/A $145 N/A N/A

Test Name N/A N/A $82 N/A N/A

300,000
Test Name 0 30 $123 $4,315 $5,610

200,000 Test Name 0 30 $129 $4,507 $5,859

Test Name 0 30 $82 $2,877 $3,740

100,000
Test Name 0 30 $82 $2,877 $3,740

0
Current Projected
 Cash Flow & Burn Rate

Revenue $100,000 Cash $1,500,000 Revenue $60,000 Cash $1,000,000

Operating Expenses ($150,000) Gross Burn Rate 10 months Operating Expenses ($120,000) Gross Burn Rate 8 months

Operating Profit ($50,000) Net Burn Rate 30 months Operating Profit ($60,000) Net Burn Rate 17 months
 Teleworking Guidance
The coronavirus has forced many of us to make rapid adjustments at workplace. More and more employees are
working remotely, creating new challenges for companies. Organization around the world are adopting innovative
solutions for remote working.

01 02 03Work from Home

Moving the workplace to the home presents
technical and organizational challenges.
Employment regulations and data protection
must be enforced.
Communication Tools
Digital cloud solutions, messengers, chats and
remote meetings are viable solutions. They allow
teams to stay in contact with each other and be up
to date.
Personal Responsibilities
Give employees clear goals and monitor progress.
Manage performance instead of people so
employees can continue to stay focused on their
responsibilities.

04 05 06 Leadership
Employees should know how and when they can
reach their direct managers. This is to ensure that
employees feel secure about what they do and know
there’s always help.
Task Organizations
Provide information and tips on how to manage
working from home. Through management's
coaching and mentoring, employees have the
opportunity to grow.
Flexible Schedule
Mitigate the mental impact of crisis with
flexible hours if there are slow-downs or
contracts fail to materialize beyond
employees’ control.
 Team Status Dashboard

Employees on team by work status Absence count by department

20
Full-time employees
working from office 35

30

In office 25
Full-time employees
teleworking 450 Telecommuting

Isolated and not

20

15
telecommuting
10

28
Isolated and not
0
teleworking Finance Marketing Sales Product Operations Engineering Support

Furlough, Reduced Pay, and Lay-offs due to COVID-19 Absence count by branch location

35

30

25

20

15

10

0
Week 01 Week 02 Week 03 Week 04

Furlough Reduced Pay Lay-off

1-20 21-40 41-60 >60
 Team Health Status

Working Isolation Est. Recovery Est. Back to Days in Backup

Name Condition Last Check-In Check-in By Next Check-In
Location since Date WFH Date Isolation Required

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Healthy Office N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Isolated N/A 4/10/20 4/20/20 4/27/20 5 4/15/10 Name Here 4/22/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20

Name Here Healthy Home N/A N/A N/A N/A 4/7/20 Name Here 4/24/20
 Team Status Snapshot

5%
In office

75%
Teleworking

5%

Isolated

15%

Furlough

Due to the precarious nature of our business operations, project development status, and projected revenue for the rest of the fiscal year,
we’ve unfortunately had to place 15% of our workforce on furlough but welcome them to rejoin the team when the macro situation
demonstrates a more positive outlook. Since March, we’ve also mandated all employees to work from home, with the exception of those
whose job duties require them to be onsite.
Depts with Paused Hiring Depts with Pay Reduction

75% 90% 32% 47%

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

March 15 April 15 March 15 April 15

 Projected Phases

01 ½ month Form crisis management committee and perform detailed risk analysis and structure crisis mitigation plan.

02 ¾ month Active communication with employees regarding status quo and implementation of mitigation plan

03 1.5 months Restructuring of business strategies

04 Evaluation of employee performance, product market fit, and projected revenue 1 month

05 Evaluate effectiveness of crisis management plan and cut costs where necessary 1 month

06 Aim to achieve better stability and employees return to office ½ month

01 APR 15 APR 01 MAY 15 MAY 01 JUN 15 JUN 01 JUL

 Crisis Scenario Technique

+ Case
Scenario A
Positive best
case scenario

Scenario B
Trend scenario

Scenario C
Worst case
Time scenario
- Case

Disruptive Event Decision Point

 Plan Revenue -10% Revenue -30% Revenue No Revenue

Plan Opex
22 18 12 8
months months months months

Scenario Planning

-10% Opex
Runway Matrix 24
months
22
months
16
months
12
months

-30% Opex
28 26 22 18
months months months months

-50% Opex
32 28 22 22
months months months months
 Scenario Responses
Workers return to offices by May and
business closures are halted. Supply Best Case
chain and demand for our products
returns to old norm.

Worst Case Middle Case Best Case

Game Centralize business Centralize business Centralize business

Plan operations operations operations
Workers don’t fully return to offices until
fall, business closures continue but
Middle Case Product Halt new product Less budget for Continue new product
contained, demand is present but ability to Direction development new product dev dev
supply is inconsistent.

Headcou Keep workforce Keep workforce

Reduce workforce
nt but pause hiring but reduce hiring

Revenue Decreased but overhead Decreased but steady Slowed down but am to
Target now lower progress hit goal
Workers don’t return to offices until next
year and most of our projects are
Worst Case
Maintain for at Maintain for at Steady and maintain as
cancelled/paused indefinitely. More layoffs Runway least 18 months least 3 years usual
and revenue suffers.
 Macro Scenario Matrix
Irrespective of circumstance and whatever you believe the future holds, employing this approach will make the consequence of the decisions
clearer. The act of planning is more useful than the plan itself. After using this framework, you should update your strategy every few
weeks. Circumstances are changing rapidly;

Scenario A Scenario B Scenario C

3 months lockdown 6 months lockdown 12 months lockdown
15% revenue loss 25% revenue loss 45% revenue loss

12 months runway 9 months runway 6 months runway

Plan A
No change to plan $8M cash EOY $6M cash EOY $3M cash EOY

Plan B 18 months runway 12 months runway 9 months runway

-15% Opex
$10M cash EOY $8M cash EOY $6M cash EOY

Plan C 24 months runway 18 months runway 12 months runway

-25% Opex
$14M cash EOY $10M cash EOY $8 cash EOY
 Crisis Management 4-Step Process

Potential Acute but

Imminent Crisis Acute and Unmanageable
Crisis Manageable

Phase 01 Phase 02

Crisis Prevention Crisis Prevention Fight Off Orderly Withdrawal

(anticipatory) (defensive) (offensive) (liquidation)

PROACTIVE CRISIS MANAGEMENT REACTIVE CRISIS MANAGEMENT

Organizational Crisis

Threat of Viability

Liquidity Crisis
 Crisis Management Matrix

Organizational Crisis

Revenue Crisis

Liquidity Crisis

Insolvency Crisis

FOUR PHASES: Potential Crisis Imminent Crisis Acute but Manageable Acute and Unmanageable
 Crisis Management Process

Point to Consider Clarify Analyze Strategize/Plan Implement Steer/Monitor

• Identify the corporate crisis
• Accept the crisis and consequences
• Overcome fear , anxiety and
Management
frustration
• Review and assess the situation
• Reassess goals
• Verify resources
• Plan objectives • Clarify responsibility • Supervise projects
• Train crisis team & plan crisis • Create detailed resource plan • Review projections/key figures
workshop • Allocate tasks & implement • Lead by example
•
Supplier & customer evaluation, measures • Evaluate & adapt measures
develop scenario • Create schedule • Create a feeling of accomplishment
• Map milestone & phases • Create a feeling of accomplishment • Learn from lessons

• Overcome fear and frustration • Participate

• Understand the emotional response • Communicate
• Recover motivation and willingness • Be available
Employee to perform

Implement Mediate Measures Measures & Actions

Measures Environmental Risk Management

Project & Conflict Management

 Steps in Crisis Management

01 02 03 04 05 06

Identification Initiate crisis Perform a general Define immediate Creation of a Implement and
of crisis management analysis measures restructuring plan monitor

Identify the crisis & Create crisis management plans & strategies, Data analysis & Steer, implement,
damaging activities define objectives strategic measures adapt & evaluate
 Stages of Crisis Management

Stakeholder Crisis Organizational Crisis Product / Sales Crisis Threat to Viability Liquidity Crisis Insolvency

• Inadequate communication
• Heterogeneous stakeholder
structure
• Complex, flawed
organizational and financing
structures
• Unclear market positioning
• Bad investments or
miscalculations regarding
technological developments
• Decline in demand for
products or services
• Decline in sales volume,
prices, and / or margins
• Profit loss
• Liquidity and solvency can
still be maintained
• Insufficient cash flow • Negative survival prognosis
• Overdue payments to • Imminent insolvency
suppliers
• Excessive debt
• Insolvency

Low Medium High


01
Start Step
Start Step
Precaution
• Risk management and analysis
• Risk communication
• Early warning systems
• Identify critical processes
• Identify relevant links to
company divisions
Crisis Management Cycle
02
Preparation
• Crisis organization planning
• Networks/partnerships
• Crisis communication
implementation
other • Reporting system
• Staff & training plans
03 04
End Step
End Step
Control Follow Up
• Notify emergency organization • Return to normalcy
• Create crisis unit • Standard procedure for workflow and
• Crisis communication plan processes
• Technical tasks • Operational documentation
• Information management • Evaluation meetings
• Operational documentations • Final Report

01
Start Step
Start Step
Precaution
• Risk management and analysis
• Risk communication
• Early warning systems
• Identify critical processes
• Identify relevant links to
company divisions
Crisis Management Cycle
02
Preparation
• Crisis organization planning
• Networks/partnerships
• Crisis communication
implementation
other • Reporting system
• Staff & training plans
03 04
End Step
End Step
Control Follow Up
• Notify emergency organization • Return to normalcy
• Create crisis unit • Standard procedure for workflow and
• Crisis communication plan processes
• Technical tasks • Operational documentation
• Information management • Evaluation meetings
• Operational documentations • Final Report

01
Start Step
Start Step
Precaution
• Risk management and analysis
• Risk communication
• Early warning systems
• Identify critical processes
• Identify relevant links to
company divisions
Crisis Management Cycle
02
Preparation
• Crisis organization planning
• Networks/partnerships
• Crisis communication
implementation
other • Reporting system
• Staff & training plans
03 04
End Step
End Step
Control Follow Up
• Notify emergency organization • Return to normalcy
• Create crisis unit • Standard procedure for workflow and
• Crisis communication plan processes
• Technical tasks • Operational documentation
• Information management • Evaluation meetings
• Operational documentations • Final Report

01
Start Step
Start Step
Precaution
• Risk management and analysis
• Risk communication
• Early warning systems
• Identify critical processes
• Identify relevant links to
company divisions
Crisis Management Cycle
02
Preparation
• Crisis organization planning
• Networks/partnerships
• Crisis communication
implementation
other • Reporting system
• Staff & training plans
03 04
End Step
End Step
Control Follow Up
• Notify emergency organization • Return to normalcy
• Create crisis unit • Standard procedure for workflow and
• Crisis communication plan processes
• Technical tasks • Operational documentation
• Information management • Evaluation meetings
• Operational documentations • Final Report
 Crisis Management Matrix Levels

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Prevention Early Detection Crisis Mitigation Reorganization Learning Crisis

What happens when?

Level 1

How can we limit the damage caused by a crisis?

How can a crisis its consequences be prevented?
Content/Processes

What lessons can be learned from a crisis?

How can an imminent crisis be identified?

How can we recover from the crisis?

Who is responsible for obtaining or delivering information?
Level 2
Information

Who is taking on specific tasks and roles?

Level 3
Organization

Who do we inform and when?

Level 4
Communication

How impactful are the events information and actions?

Level 5
Psychology
 The Phase Model
High

Low
High

Low
Strategic crisis Threat to viability Liquidity crisis Insolvency

Threat to or loss of Threat to or loss of Risk of lack of liquidity Insolvency and

potential success performance targets and/or debt overload /or debt overload
Intensity of threat & need for action

(profit, turnover etc.)

Scope for actions

High
Low

High
Low

Time
 Diagnosis at Early Stage

Stock of ideas 9 Do you have any new business ideas?

Risk level 1
Innovations 8 Do you have any new products or services?

Customers 7 Have you won enough new customers?

Operational results 6 Are your operational results good?

Risk level 2
Revenue 5 Is your revenue increasing?

Costs 4 Do you have your costs under control?

Liquidity 3 Do you have sufficient liquidity?

Crisis
Creditworthiness 2 Will your bank still offer credit?

Insolvency 1 Can you avoid bankruptcy?

 The Crisis Curve

Beginning End Point

Chances of business survival

Turning Point

End Point

Time
 The Crisis Curve
Intensity of threat & need for action

Acute Crisis Worsening Crisis

Sudden &
Sudden & totally
totally unforeseen
unforeseen Slow, covert
Slow, covert
event
event development
development

Goes quickly
Goes quickly from
from First signs
First signs in
in the
the latent
latent
latent to
latent to acute
acute crisis phase
crisis phase

Time
 Kübler-Ross Model
The Kübler-Ross Model of dealing with grief and losses can translate into teams’ reaction and responses to crisis in a corporate
setting. In cases where acute crises arise, it is important to have a blueprint of feasible plan that allows for future bounce back –
both in terms of business operations and of team morale.

This can’t be happening

Corporate Performance

Denial We will never make it. We can do this.

Anger Acceptance

Withdrawal Agreement

Bargaining

Time
 Crisis Management Phases

Phase 1 Phase 2 Phase 3 Phase

Potential Crisis Latent Crisis Acute but Controllable Acute and Uncontrollable

Intense,
Intense,real
real
destructive
destructiveeffect
effect
Need for early warning

Need
Needfor
for
crisis
crisismanagement
management

Potential
Potentialfor
for
crisis
crisismanagement
management

Potential
Potentialfor
for(conventional)
(conventional)
identification
identification

Prevention Needed

Destructive Effects

Time
 Strategies & Responses

Re-evaluation of products and Reduce cost and

market fit investments

ADAPTING

Your corporate structure or

business strategy

Differentiate from Explore new fields of

our competition activities & sales potential
 Crisis Communications Guidelines

Consistency Comprehensive The importance Protection of company

of information communication of social media image

Ensure that all those in positions of Keep the media and stakeholders Social Media channels are just as Well-prepared, transparent and structured
responsibility have the same level of informed as comprehensively, consistently important as traditional means of crisis communication protects against
information required. & truthfully as possible. communications. conjecture.
01

03

04
01 03 05 07
02

04

06
02 04 06 08

Flexibility and Limit the chaos phase Risk analysis & Target groups
adaptability as possible early warning and contacts

Crisis management must always Have clear procedures & structures for Increase your chances of identifying Define target groups for crisis
include the willingness to adapt and crisis and communication in order to keep latent crises and prevent them from comm internally and also maintain
improvise on it. initial phase short escalation contacts with media
 Crisis Communications Guidelines (cont.)

Creation of a Convening of the Having an early Documentation and

Crisis Handbook Crisis Unit warning system follow-ups

Where procedures and structures, capability, Should be convened as soon as possible to A good early warning system allows you Following up after crisis is important part
responsibilities, functions, process etc. are monitor information on the crises and release to keep the chaotic initial phase as short of process & basically starts during actual
summarized news when needed. as possible. crisis management
01

03

04
09 11 13 15
02

04

06
10 12 14 16

Openness and Open and welcome Credibility and Consistent and

transparency recommendations consistency open dialogue

This is essential to maintain a good level Point out and explain any area of Reduce fear anxiety and risk perception The task of risk comm. Is to ensure
of trust and to safeguard your company’s uncertainty and explain. Develop & by publishing trustworthy and credible dialog in both direction & to take all
reputation. publish recommendations. info. interest groups into account.
Crisis Communications
Target Groups

Employees and associates within our

company. Internal committees as well as
Internal
internal organizational units.
Target Groups

Customers, suppliers, strategic

External
partners, media partners and TARGETS
Target Groups
associations, and shareholders

Crisis MGMT
Federal, states, or municipal governments,
Participants
ministries, authorities, and other official
organizations.
STAY
HEALTHY,
STAY CALM
We wish you and your family good health during this
precarious time. We are confident that this too shall pass
and we look forward to seeing everyone together in the
office soon.
COVID- Infographic

2m
COVID- Infographic
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