Jon Plate, Consumer and Manufacturing expert, is quoted in an article about a Danish company, Frameo, which has turned a bad COVID-19 situation into a successful outcome. He offers expert advice to others who want to do the same.
Jon Plate explains what other companies can learn from Frameo:
"They kept focusing on the essentials, namely their sales figures, instead of panicking. They've kept calm, and that's both brave and right."
And it's not just software companies like Frameo that can apply the approach of not laying people off and continuing operations and development, according to Jon Plate.
The most important thing to look at is: Is there any indication that your future sales - on the other side of the corona crisis - will be significantly impaired? If not, believe in your business and keep going.
"Have ice water in your veins if there is nothing to suggest that your market will change in the future. It is not certain that you will have to hire new people, it depends on the state of your finances. But there are many companies that can easily allow themselves to take a far-sighted view, " Jon Plate said.
Alternatively, you can consider whether there should be a temporary pay cut to keep your employees and be ready for when the crisis subsides.
“At PA Consulting all employees had a salary cut of 10 percent, and the management team had a cut of 20 percent while the corona crisis was at its peak. That was a good way to keep a lot of employees on board - and the money was paid back during the autumn.”
He emphasizes that everything depends on whether the impact of the crisis on your company is temporary or whether it can be expected to leave a permanent impression on the market, as may be the case in the experience economy and the travel industry.
"The key question to ask: is this temporary or permanent?" Jon Plate said.