Approaching the crisis with value in mind
By using the words ‘crisis’ and ‘value’ in the same sentence there is a danger of looking like an opportunist. However, everything boards and governors do needs to have a value perspective or value filter. It is also essential to put this in context by stressing that there are a range of different dimensions to value.
How should we as directors and boards be thinking about value as we navigate this crisis?
- We should be asking what value needs to be preserved? Here was are examining the foundations of our business. Those things without which we would no longer be in the business we are in. These would include the fundamental non-negotiable values and beliefs that undergird the business. We will enhance our chances of surviving this crisis if we are clear about what these are since these will govern and guide and align our decision-making.
- We have to ask about what value we need to protect? In this category I would certainly include the financial aspects of the business. Here we need to approach these with the view of protecting, and extending these, as far as possible. How much fuel do we really have in the tank – and where can we find that little bit more. Finances are fundamental to all organisations – they are the fuel upon which all organisations run. We sustain the business by protecting these during a crisis.
- In order to cultivate a picture of what things will look like beyond the crisis we must ask what value we can create during the crisis? As we navigate a crisis there will be difficult decision about what we let go of and what we reach towards. The things we reach towards must be value adding and draw us forward. Here we would address value cultivated in our people, engineered through improving our systems and that expected by anticipating the needs of our clients into the future as we together discover the way forward.
Businesses are intended and designed as value-creating mechanisms. The range of value that can be created is broad. AS we wrestle our way through crisis there is an opportunity to explore, discover and unlock additional value.