Pub. 9 2020 Issue 3

The CommunityBanker 18 I n times of substantial economic disruption, the natural tendency is to address short-term concerns and put off consideration of longer-term strategy until the disruption passes, and the picture becomes more apparent. Delaying consideration of strategic direction in this fashion forgoes timely consideration of strategic opportunities and evalua- tion of risks presented by the disruption. Examining your strategic direction is one of the most important measures you can take in times of change and uncertainty. The COVID-19 pandemic has disrupted the business plans of every bank, business, and nonprofit. The impacts range from overwhelmingly negative to unexpected windfalls. Regardless of the short-term impact, the COVID-19 pandemic will foster long-term changes in the economic landscape. Common response Many boards and senior managers resist planning in times of great uncertainty. This is an understandable response. The perceived challenge of planning in such an environment is much greater. Compared to planning in a normal environ- ment, planning presents an increased number of variables to consider and greater uncertainty around each variable. It is not uncommon for boards and management teams to freeze and hope that prior plans and strategies will see them through. Staying the course may be the best response. But you should do so intentionally. Hope is not a strategy. There is one certainty about the COVID-19 crisis: The world has changed. Failure to reexamine your strategy leaves the future of your organization to chance. In a situation as chaotic as a global pandemic, deciding where to start the planning process is often the most chal- lenging question. If we begin with why we exist, the process becomes much less daunting. Proactive response There is a practical and effective way to approach plan- ning in times of uncertainty. First, embrace planning as an opportunity to get ahead of what comes next. Second, focus COVID-19: The Time to Discuss Your Strategic Direction By Mark Mangano F E A T U R E