Four ways Covid-19 has affected your business operations
It’s no secret that business operations are dependent on tasks and processes that create a strategy to develop and implement growth and profit for an organisation. Business operations can encompass a wide range of profitable, business transformation projects such as a merger or acquisition, new systems implementation, or building new infrastructures to cope with changing financial or tax considerations brought on by factors such as Brexit or the delayed IR35 policy changes.
Naturally, with the global reach of the Coronavirus’ impact, supply chains and the international labour market were impacted heavily, as was the UK as a whole with the onset of the lockdown. However, many businesses are now in a position to start resuming and even accelerating business operations as an urgent priority to ensure survival long after the Covid-19 pandemic.
Being aware of the ways in which Covid-19 has affected your business operations will help you when it comes to strategising ways to overcome them and work towards a fiscally sound year.
Two economic factors affecting businesses as a result of Covid-19:
- 1) Reduced cash flow has affected the budget for large-scale projects
This has meant that funding has either been cut, or that these projects have been paused or put on the backburner for a more stable period. This has had the effect of significantly putting a breaker on business operations; collaborations have been interrupted, mergers and acquisitions are no longer going ahead, jobs have been lost or furloughed due to the fact that their skills are no longer needed.
This could have long-lasting effects if organisations are not able to pick these projects back up and implement a skilled workforce quickly. Crisis management needs to transform into future planning as soon as possible.
- 2) Plummeting stock markets have caused many companies to make hard decisions
From furloughing staff to ceasing operations, many hard decisions have been made due to the falling stock markets in many sectors and industries. B2B service providers have experienced double the deficit as they are dependent on the survival pf the business operations of other companies and traders to operate.
Two social factors affecting businesses:
- Remote working and the increased flexibility of committed staff
However, although Covid-19 has had many negative effects on society and businesses around the world, there have also been some positive factors that will change the way businesses operate and develop forever. For non-essential workers, remote working has proven a flexible and adaptable feat that many industries did not previously think was possible or appropriate.
Productivity levels, for many businesses were maintained despite being distanced from the physical office and working environment. The repercussions of this for many companies’ business operations are tenfold. Companies can now look to rethink their priorities when it comes to a physical office space and look for more cost-effective and flexible solutions – freeing up funds to support other projects.
- Increased global outlook through significant digitisation
The success of remote working during this time has meant that many companies have been propelled into significantly increased digitisation – more so than they would have been without the pandemic. This has meant the increased adoption of digital means to communicate both locally, internally, and also on a global scale. This will have the effect of reducing the business costs of international travel when video conferencing technology can be used to create just as meaningful and effective an experience as a business trip or meeting.
International business deals, collaborations between intercontinental offices and global manufacturing processes will become streamlined and processes simpler as a result of the forced embrace of technology and digitisation.
How to adapt your strategy to accommodate these factors:
One way many businesses are exploring to reinvigorate and safeguard their business operations is looking into the flexibility and adaptability that contingent staff offer. Effectively allowing companies to plug skill sets in a cost-effective manner, contract and interim staff can support businesses as they navigate this challenging economic climate.
Interim managers bring an incredible level of expertise to a broad range of business problems and are, therefore, able to facilitate and offer meaningful solutions. Due to their unique perspective, they are able to offer the following tangible solutions to a wide range of business operations, projects and incentives:
- Quick results and a focus on deliverables
- High calibre skills and industry expertise
- Ability to impart knowledge on permanent staff
- Offer and implement strategic solutions to ensure success
Oakwood Resources can help to accelerate your business requirements by sourcing interim managers who are assessed based on their skills and experience and who can work alongside you to deliver successful outcomes for your business operational needs.