Sometimes conditions beyond their control leave business leaders with few good choices. That’s when good analysts–advisors can help them cope with current challenges and prepare for better times. The COVID economy is one of those times. The bad news? Chapter 11 filings jumped 26% during the first half of the year[1] and Forbes reported that “new business creation has fallen off a cliff during the pandemic.”[2] The numbers exceeded the predictive benchmarks I set after the initial economic lockdowns. They also point to tough economic conditions at least through next year.
There are no good precedents and proven off-the-shelf solutions to help companies cope with these unprecedented conditions. Thankfully, there are lessons learned from previous technological disruptions that upended markets, practices, business models, and leadership. They point to effective transformations that led established companies to great success. It was never easy, but those that succeeded often secured their futures for a decade or more.
OPR's Recovery Framework is based in part on lessons learned during multiple disruptive periods spanning several decades. We know from experience that there are solutions for those willing to do the hard work.
References:
[1] Aisha al-Muslim, Chapter 11 business bankruptcies rose 26% in first half of 2020, July 2, 2020, Wall Street Journal, https://www.wsj.com/articles/chapter-11-business-bankruptcies-rose-26-in-first-half-of-2020-11593722250
[2] Dane Stangler, Are Americans starting new businesses during COVID-19 crisis?, Forbes, May 18, 2020, https://www.forbes.com/sites/danestangler/2020/05/18/are-americans-starting-new-businesses-during-covid-19-crisis/#583b13d53d73