WHAT TO CUT & HOW TO CUT IN THE MIDST OF A PUBLIC HEALTH CRISIS

A different kind of crisis

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The playbook companies used in 2008-2009 needs to be modified in 2020

STARTS IN COMMUNITIES, AS WELL AS AT WORK

A HUMANITARIAN CRISIS, AND A FINANCIAL CRISIS

A DISRUPTION, NOT A RECESSION (YET)

Scenario planning

3

Before any actions are taken, organizations must consider the change in demand and the length of time the crisis will last.

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Depth

Two Months Eighteen Months

> 50% Revenue

Loss

Minimal Revenue

Loss

§ Furloughs, hours reductions, voluntary leave, exec pay reductions.

§ Supplier concessions.§ Near-term efficiency measures.

PARE AND PROTECT§ Layoffs.§ Divestitures.§ Reorganization.§ Outsourcing.§ Capex cuts.

RESTRUCTURE

§ Capturing variable cost savings.§ Delay new hires, new spending,

raises.§ Cancel events, low priority

initiatives, travel.

RIDE OUT THE STORM§ Near-term efficiency measures.§ Targeted layoffs.§ Prioritization of strategic

initiatives.

GET LEAN

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WAVE ONE: COST-CUTTING TACTICS

Take out tactics

Timing tactics

Capturing variable expense savings

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WAVE TWO: INCREASE EFFICIENCY, FAST

Optimizing rewards spend

Adjusting management

spans

Stopping grade/title inflation

Auditing your operating model for redundancy

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WAVE TWO: INCREASE EFFICIENCY, FAST

Tackling process efficiency

Supplierconcessions

Targeted headcount reduction

Targeted facility closures

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WAVE THREE: FOUNDATIONAL RESTRUCTURING

Rightsizing layoffs

Divestitures

Capex cuts

Outsourcing

Realigning the cost structure is hard on employees.

Anxiety about health issues already has many of us on edge; anxiety about job loss and job security is going to make that even worse.

Above all, maintain organizational resilience

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EMPATHY FOR DISRUPTION

COMMUNICATING THE CONTEXT

NEW TECHNIQUES TO MAINTAIN ENGAGEMENT

Thank you