Delivery problems, staff shortages, trade relations: The war in Ukraine is having an impact on small and medium-sized businesses, and every company is affected differently. How strongly this war will affect the economy is hardly predictable and depends, among other things, on how long the war will continue and how far the situation will deteriorate.
Situation analysis to provide a clear basis for decision-making
Even if looking into the future is difficult, every responsible corporate management knows how important it is now to prepare for possible scenarios and respond to the current challenges. The extent to which individual companies are affected varies. In this context, there are many questions to be answered and decisions to be made. It is therefore useful to analyze the situation of your company in detail in order to have a clear basis for decision-making, at least for the moment.
Orientation to the value chain can be helpful. The analysis provides information on the points in the value chain where negative influences are occurring or may occur in the future as a result of this crisis. The range of issues is so wide that the formation of a task force can be useful. Such a body can provide focused analysis of the various issues, from economic impact to supply chains to production and sales to compliance from the sanctions and internal guidelines. What is opportunity and what is risk? From this, management can make the next decisions and determine the communication to external parties.
Crisis team for rapid action
Predominantly, risks are to be assumed in the case of medium-sized companies and thus the task force quickly becomes a crisis team. If the company is indirectly affected by EU sanctions and discontinued trade relations against the Russian Federation, different decisions will have to be made than if the company is confronted with rising energy prices for production. The entire toolbox of crisis management is available for the necessary measures. At present, the following probably applies to many companies: Keep money together and drive on sight.
It is extremely important to include the entire ecosystem in the analysis – there may also be a need for action among the company’s own employees. The situation can be stressful and overwhelming for employees. Some may even have family members or acquaintances in Ukraine. This oppressive atmosphere within the team can have a noticeable effect on motivation, concentration and performance. This is when the right psychological approach and empathetic behavior are required from managers. The communication strategy for dealing with the workforce can vary depending on the company: From e-mails, team meetings and conversations in small groups to professional psychological help for those affected, there are many ways to catch and strengthen the team.
THE MAK`ED TEAM has gained a lot of experience in dealing with corporate crises in Germany and abroad and supports small and medium-sized companies in the development of an individual crisis management and the accompanying communication strategy.
