How to best position for COVID recovery
Arguably the most challenging responsibility for NEDs is protecting long-term shareholder value. Whilst this necessitates a focus on survival in the short term, it means boards must divert sufficient attention to what comes next: recovery.
Whilst the board has an important role in advising, supporting, and challenging leadership decisions around survival, it is in planning for recovery where NED engagement has the potential to particularly benefit the firm.
This report outlines a systematic approach that can help boards assess and adjust their future competitive positioning. The model uses four dimensions of uncertainty to help evaluate how the world will ‘normalise’ in both the medium and long term.
Accelerating agile transformation
There are strong reasons to consider accelerating agile transformation within your organisation. Implementation typically follows four steps:
- Develop a new structure. Management develops a new leadership structure to orchestrate the move to an organization built around agile teams and principles, such as customer satisfaction, collaboration, and simplicity. It executes a fair, transparent selection and staffing process and charters teams with clear purpose and objectives and a backlog of projects.
- Embed new behaviours. The company builds the capabilities to support behaviour change and initiates the relevant training (at all levels). Demonstrating new leadership behaviours is an essential component of an agile transformation.
- Prepare the MVP operating model. Working closely with HR, corporate and business unit management design new roles, career paths, and review systems.
- Accelerate data and tech transformation. Most companies need to launch or accelerate their technology transformation in parallel with the other steps.
The impacts of COVID-19 on financial reporting
In this podcast Gary Berchowitz of PwC UK looks at how organisations are presenting the impacts of COVID-19 in their financial reporting. He answers the following questions:
- What are regulators allowing in terms of adjustments to non-GAAP performance measures?
- Are entities allowed to present a separate line item for COVID-19 in the income statement?
- What does the IFRS guidance say?
Preserving project continuity in the face of COVID-19
McKinsey & Company
Three primary challenges have emerged as a result of COVID-19, all requiring new levels of agility from project owners:
- Fluctuating guidance and restrictions. Policies put in place to flatten the coronavirus curve have already disrupted the availability of labour, materials, and equipment, and are likely to continue doing so even as they ease.
- Market conditions. Supply chains and contractors will be strained, and project owners must be prepared for the possibility of insolvency or bankruptcy alongside cash flow shortages.
- Cash and working capital. Resources will be increasingly scarce as the markets and economy falter and then recover, and a challenge that may be compounded by low cash reserves.