From Julie Page, CEO, Aon UK Limited
The world as we know it is being completely reshaped by the COVID-19 pandemic. Consumer behaviour has shifted and is constantly evolving, business models are fundamentally changing, supply chains are being rewritten and organisations are working in a way previously thought improbable if not impossible.
Making decisions for the long term
At Aon our immediate focus is firmly on helping our clients assess and manage risks that are emerging because of the pandemic. Our most recent paper ‘Decision Making in Complex & Volatile Times: Keys to Managing COVID-19’, sets out a comprehensive response framework that clients can implement to help manage their business through the various stages of the recovery cycle.
As the whitepaper notes “For many business leaders COVID-19 will be the most disruptive, world-changing event in living memory.” It is clear to most that we won’t be going back to how things were before COVID-19, and how we navigate this pandemic will be one of the most significant events in our lives.
We are all in unchartered territory and are making difficult decisions for the short term and the long term, based on what we know now and the insight we have. There is a huge amount of information to navigate, including government guidelines, market volatility and an unwavering dedication to do the right thing to safeguard colleagues.
As we outline in our paper “Successfully managing a crisis can have a lasting impact for an organisation” and successful management of a crisis can pay back, with research showing that “shareholder value can appreciate up to 20 percent in the year following the event” for the firms that handle crisis management well.
Aon’s framework approach
Aon is not immune from the COVID-19 crisis, and we are taking hard decisions to be able to continue to service our clients and protect our firm for the long term. We are investing in our decision-making framework, so we can help our clients do the same.
How a business reacts to the crisis will determine the long-term success of the organisation, and that of its leadership, driven by the communication and decision-making that come together to shape this process.
We have developed a comprehensive framework, which is outlined in detail in our paper. This includes a Black Swan Decision Framework, COVID-19 Crisis Management Model and a set of Business Impact Actions and Priorities. As the paper outlines “The decision framework and crisis management model lay the foundation for business impact actions and help leaders make decisions informed by precise data and analytics and remain vigilant and flexible throughout every stage of the COVID-19 crisis.”
This is not a linear pathway
An element of Aon’s framework is the COVID-19 Crisis Management Model, and as the paper references, “There are three distinct timeframes for the COVID-19 crisis — react and respond, recover, and reshape.” Whatever the size of your organisation, the stages can be relevant, and understanding where your organisation is at any point in time will aid in decision-making, communication, and action. Movement between these stages will likely be fluid, partly influenced by further spikes of the outbreak and the unique factors pertaining to your organisation.
Making high-impact decisions
The final part of the whitepaper examines the key areas where business decisions will have the biggest impact. These five areas include: Protecting People and Assets, Protecting the Balance Sheet, Maintaining or Increasing Revenue, Managing Costs, and Revisiting Business Strategy.
Utilising available insight and data to inform your leadership decisions in each area is fundamental to your business strategy and survival of this crisis.
We are here for you
In only a matter of months we have seen the impact that the COVID-19 pandemic has had on the health of people across the world, and we are starting to see the financial impact on UK businesses and the economy. This crisis is a true test of leadership and resilience, and we are here to support our clients throughout.
We hope you will find this paper to be an enabler in developing your firm’s approach to decision making. If you have any questions regarding the content, or how we can further support you, please reach out to a member of your client team.
You can download the full whitepaper here.
There is also a host of insight and resources available to you on Aon’s COVID-19 response site.
Julie Page
CEO, Aon UK Limited.
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