Any place with a fixed cost that relies on foot traffic will come under pressure. Huge segments of the economy have shut down: travel, hospitality, restaurants. If you’re a CEO who can’t quickly bias yourself for action and if you wait around for someone to tell you what to do, then your investors, or more likely the market, will make those decisions for you. Even with imperfect information, the future of your company depends on your ability to make rapid decisions and start acting. This is not the time for committees, study groups or widespread consensus building. Notice that the word speed appears twice. Survival = (speed of your understanding of the situation) x (the magnitude of the pivots/cuts/lifeboat choices you make) x (the speed of your time to make those changes) Your company’s survival in this downturn can be captured in a simple formula. Your Company Survival Depends on A Simple Formula So here’s a five-day playbook to help CEOs of cash-flow negative startups, or ones about to go negative, assess the new normal and respond with speed and urgency. But it’s increasingly looking grim.Ĭompanies that outlast this crisis will have CEOs who can rapidly assess these new circumstances, recognize new patterns and opportunities, and act with urgency to take immediate action to pivot and restructure their companies. We’re in uncharted territory with the Covid-19 pandemic. What cashflow-negative companies must do to survive Paycheck Protection program and the Economic Injury Disaster Loan program. It’s been updated with new information about the U.S. This article previously appeared in the Harvard Business Review. Technology, Innovation, and Great Power Competition – Wrap Up.What’s Plan B? – The Small, the Agile, and the Many.Save the Date! the 5th Lean Innovation Educators Summit. ![]()
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