Corona crisis should make the board focus on the boards responsbilities
This is how the chairman of the board begins our talk, and continous explaining what is important for a board and the chairman of the board , when attempting to adapt to the corona crisis.
Nextt Management has spoken to a number of chairmen of various boards, on how they relate to the current crisis, what is important to observe as a board of directors, and how they think boards and the management should act together in this urgent crisis situation. As one of the interviewed chairmen said; the day after the Prime Minister decided to close down our society in early March, the chairman of the board called in the 13 board members to an extraordinary meeting- it should be noted that this meeting took place online.
He points out that it is important at these extradinary board meetings to have made a protocol that:
- The board has responded to the current situation
- The board has discussed various scenarios
- The board has initiated analyses of both internal and external matters
- Work has been initiated to secure liquidity for the continued operation
The board of directors and the chairman of the board must take responsibility to follow up
Thereafter, it is the duty and responsibility of the Chairman of the Supervisory Board, at least weekly, to follow up, adjust and inform the other Supervisory board. He is completely aligned with the rest of the board of directors whom Nextt Management have interviewed. Together they agree on a row of other points and efforts that is the duty and responsibility of the board of directors and not least the chairman of the board, to follow up on the following weeks and months:
- Focus on aid packages; it is important for businesses to have knowledge on how the relief packages affect the operations and liquidity
- Get an overview of what relief packages are compensation packages and need to be paid back at a later time
- What packages are here and now liquidity help and therefore should be paid back at a later time
- Focus on helping the daily management with general as much as possible to ensure focus and progress despite corona.
- Focus on the consideration of using salary compensation packages versus firing rounds. It is highly individual, what is most appropriate depends on the situation of the specific company.
- Ensure that management and the business is kept running and does not go on “stand by” mode. Help to support the management with being proactive at all times
- Ensure that the business contact their customers and collaborative partners to ensure meetings are being moved and planned after the summer vacation
- Ensure that the daily management makes sure that there is visible leadership although many employees are working from home. The focus lies on being an active leader and motivating.
- Focusing on seeking new employees that the businesses needs. It is maybe now where really skilled and competent people are available at the market, hence actions need to be taken
Read up on the different relief packages here – BDO Covid-19 relief packages.