Survival Guide for Family Business for the post Covid-19 Season

With the emergence of the Covid-19 pandemic,  having been achieved in the first stage to protect human life by limiting the increased number of diseases by implementing measures to limit the spread of the disease, in the second stage the attention of all of us is focused on the survival of our businesses.

The survival and growth of enterprises in the new data set by the post-Covid-19 era includes their operational redesign in the new conditions prevailing but also in the rescue of as many jobs as possible. In a third stage, business plans leading to a healthy and successful development of the business should be implemented.

By Thanos S. Chonthrogiannis

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The uninterrupted operation of businesses

The uninterrupted operation of enterprises includes:

  • In the acquisition of liquidity
  • To secure funding that will provide uninterrupted liquidity.
  • Rationality and reduction (where possible) of expenditures.
  • Addressing any difficulty that occurs in such pandemic situations in the supply chain, which in turn supply chain difficulties will cause a downturn in consumer supply. The imposed lockdown causes a slump in demand and if citizens’ income is not guaranteed by the state.
  • The possible stop of payments or the long-time delay of payments.
  • The absorption and optimal use of any state economic support programs for enterprises.
  • The development of multiple scenarios as to how to move and adapt accordingly to conditions the enterprise.
  • Communication and employee support.
  • The immediate identification and exploitation of the looming or non-emerging opportunities that always occur in a crisis.
  • Maintaining the reputation of the name of the family business.
  • The cohesion of the family members who run the family business.
  • The way in which difficult and why not unprecedented decisions based on substantiated views and arguments.
  • The withdrawal and isolation of senior family members to protect life responsible for the administration and decisions of enterprises, for an unspecified long time and their replacement with members who know the subject.
  • Succession and extraordinary and unprepared leadership roles by the younger generation of the family, etc.

Managing the replacement of the older CEO of the family business

Due to the fear of the lives of older people from Covid-19  and since no effective treatment has been found so far to treat it, family businesses are called upon to manage the possibility that the President or CEO of the company who may be a father or mother over the age of 67 will become ill from the disease or even lose his life.

If the company is set up around this man, which translates as his natural daily and substantial presence in the business by participating in the decisions, a sudden removal of him (social isolation) is likely to cause particularly significant problems both in the family, as well as in the employees, customers, suppliers, lenders etc.

Managing such a situation is purely based on the business culture that distinguishes the family business. In particular, the management of the family business should provide answers to issues such as:

  • What is the governance and decision-making framework in the business. Works rationally adapted to the requirements of the times or needs to be revised and fundamentally set up from the beginning.
  • What kind of communication between us is functional and how this communication provides directly addressing any operational and strategic issues that arise.
  • How are crises treated? Disagreements between us lead to insurmountable conflicts or constructive dialogue and agreement based on arguments.
  • There is a clear organisational chart for what everyone does in the business (tasks and liabilities per job position).
  • Is there a clear procedure based on statutes, as to the succession of the management of the family business? If so, is it helpful in exceptional cases?
  • Is there an operational crisis management plan?
  • Whether the emotional charge factor affects the difficulty of taking seriously decisions concerning grade, A and B relatives working in the company.

The solution is planning and preparing for family businesses to respond to the challenges and crises of the future.

 

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