Do You Have a Post-Coronavirus Business Recovery Plan?

As states begin to ease stay-at-home restrictions, businesses must prepare for a new normal as employees return to work.

Just as organizations of all kinds surely understand the importance of continuity planning, they must also have recovery plans.

Recovery plans must reflect that of the new reality. The investment climate is different, and with that comes opportunity, as mentioned in one of our earlier posts. The workplace itself will not be the same it was before. Business in general will take on a different form, and organizations must be ready.

Here’s how investment organizations should prepare their post-coronavirus business recovery plans.

How To Keep Business Going During Coronavirus (COVID-19)

For investment firms, the primary focus right now should be on building business resilience, and business continuity plans are key to surviving these crises.

According to Shearman & Sterling LLP, here are some contingencies an investment manager’s BCP should provide for:

  • Determining which essential business functions and processes may be affected
  • Identifying the potential impact on the institution’s essential business functions and processes, along with impact on customers 
  • Identifying the laws and regulations applicable to specific business functions and processes
  • Estimating the maximum time that processes and functions may be down
  • Assessing cross-training conducted for key business positions and processes 
  • Evaluating the plans of critical service providers for continuing operations

Get more information on planning for crises like coronavirus in our article, “How Pandemics and Other Crises Affect Your Need For Fintech.”

How to Prepare For Business Post-Coronavirus 

As states begin to reopen their economies, there are moves investment firms should make as they prepare to open the doors. 

The offices we left behind in March will not be the same ones we return to, stated Bloomberg.  Workplaces will need to be restructured to take into account physical distancing guidelines, health checks, and higher sanitation standards.

Furthermore, reassessing your staffing needs, renewing contracts and reviewing existing technology are among the steps to ponder as you prepare for business to return to a new normal.  

This time opens up an opportunity to upgrade your technology, enhance security, and improve internal communication. Here are some areas to review, from CIO.com:

  • IT security - Phishing attacks and scams related to COVID-19 are on the rise, and IT should protect against these external threats. Make sure any in-house systems are clean before a broader relaunch. In addition, team members should be educated about security risks and trained on how to avoid them. Our recent blog posts about technology risks to avoid during COVID-19 is a helpful resource as well.
  • Communications - Keeping the company informed about decisions and changes to work is important in uncertain times. Executives and managers must close the loop and keep employees up to date daily.
  • Software and fintech - With the pause and realignment in business, this is a good time for investment firms to evaluate their software needs. Are they still using legacy software? Will the current financial technology serve the organization's long-term needs? Check out our blog post about the pros and cons of legacy portfolio accounting software.

How To Grow Your Business After Coronavirus

More than just bouncing back from the coronavirus crisis, firms must be ready to take advantage of new opportunities when business reopens. That means coming up with a post-coronavirus recovery plan that will align with new realities.

According to management theorist Henry Mintzberg, traditional strategy aligns along the 5 Ps: plan, ploy, pattern, position and perspective. The Harvard Business Journal has adapted those 5 Ps into a new list to guide firms on their way back from the crisis: position, plan, perspective, projects and preparedness

Position

Understand your organization’s position in your environment so you can make smart strategic decisions. Who are you in your market, and who are your main competitors? Can you regain lost ground? Can you emerge as a market leader?

Some businesses are questioning their post-coronavirus viability, and others are already targeting growth opportunities. How you view your position is likely to help you map out your future.

Plan

Formulate your plan for bouncing back. By understanding what you need to do today to achieve your objectives tomorrow, you can plot out your course of action. You can understand how to get through the coronavirus crisis and how to get back to business after it ends.

A good rule of thumb is to think broadly and deeply, and take a long view. A lack of a long-term plan can prevent you from getting back on your feet.

Perspective

Your culture and identity will likely change post-coronavirus. How can you turn that to your advantage?

Check out our recent blog post, 6 Lessons RIAs Can Learn from COVID-19.

A crisis challenges your firm, but will it be a positive or negative? Will employees come together or be driven apart? Will they see the organization differently when this is over? Your answers will inform what you can achieve in time.

Projects

Have projects ready to go when business returns to normal. Know what new projects you need to launch, run and coordinate. Companies must prioritize and coordinate initiatives that will give the organization protection against further downturns. 

Don’t create more problems for yourself by starting several projects that all depend on the same critical resources. With too many new initiatives, you could create a battle over resources that delays or derails your strategic response.

Preparedness

Planning must be followed with execution. Assess your organization’s preparedness to launch these new projects and plans.

Along with assessing preparedness, it’s also time to assess resources. Do you have the right instruments in place, and do you need to consider new, better methods to implement?

Why It’s A Good Time To Transition to a TAMP 

This brings us to our final point. With this extraordinary time comes extraordinary opportunities for companies that are prepared for the present and looking wisely into the future. 

Review your financial technology is a good idea, and with the right setup, investment managers can spend their time on clients instead of on reports, data gathering and other deskbound activities. That can let you concentrate on the big picture.

This is a good opportunity to leave legacy portfolio accounting software and move to a cloud-based platform like a TAMP (turnkey asset management platform) for managing your clients’ investment portfolios. The future is cloud-based and digital. Your competitors are going in that digital direction and the clients expect you to follow suit.

Find out about transitioning to turnkey asset management platforms in our eBook, “Technology Guide for Small to Midsize Investment Firms: Choosing a TAMP.”

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