Are you ready for the next crisis?

The world hasn’t become any more predictable even as we settle down from the shocks brought on by the pandemic. The next crisis may be just on the horizon, but we won’t necessarily be able to see it or identify it as it approaches. While there are no magic glasses or crystal balls that make it easier to focus on the future of your industry, there are things you can do to prepare for the unknown.

Ask yourself the following questions to evaluate your readiness for crisis:

1. What is the structure of our decision-making process?

In a crisis, your company needs to be both agile and coordinated. It is important to have the right structures in place and to act quickly. To do this effectively, you need a centralized decision-making process. This ensures fewer inconsistencies across the company as you react to changes because decisions are the same for everyone.

2. Do you know what your company’s “north star” is?

In a crisis or a large-scale unpredictable event, it is possible that your company’s entire strategy could be upended. What would you do in this type of situation? This is where your company’s purpose or values come into play to help you stay on track and reinvent your organization as needed.

It is also vital that you check whether your core values are communicated and understood across your company. Values help all employees come together as a team, which is critical in times of crisis. Ensuring that everyone understands what they stand for can be pivotal when it comes to the next big shock to hit your sector.

3. What is your financial position?

It may seem obvious to say you want to have a financially healthy company, but it is important to look at your health as the overall global economic picture changes. Interest rates and inflation are both on the rise, and money is not as cheap and accessible as it has been in recent years. This means you need to put a much greater emphasis on sustainable cash flow. Look at where you can improve the terms of existing contracts and see if there are ways you can ensure your ability to generate cash when you need it.

If you keep an eye on your cash, your values, and your ability to switch gears and make fast decisions in response to a changing market, you should be well-prepped to weather the next storm.