How project approach can help you in crisis situation?
There’s no doubts that the last quarter’s main topic was the coronavirus in the life of enterprises: there’s only a few industries where the pandemic didn’t cause any mess. Today we also see that everyone reacted differently: there were companies who tried to minimize the losses with immediate dismissals, while others didn’t surrender to the initial panic mood and instantly worked out an action plan.
It’s easy to say that bigger company means stronger assets, and thereby it’s more resistant to unexpected danger situations, but in practise this isn’t necessarily the case. Just think about the dept management, complete shutdown of export-import, increased HR tasks caused by crisis – we got a lot of these because of COVID19.
It is also clearly seen that the first victim of pandemic in the cases of most Hungarian SMEs was project approach. The eventuality of business processes was challenging in numerous times for enterprises, thereby it’s not a suprise that the business decision making was dominated by the panic reactions.
However, during this situation, deliberate project management would have been extremely useful and necessary: (re)organization and proper management of resources, preparation of action plans (preparing for several outcomes of the crisis situation).
Lack of project approach and mentality (which should include preparing worst case scenarios) unfortunately comes with serious economic consequences. Just think about those businesses, whose don’t have operating reserve which lasts out for more than 2-3 months during crisises. This is definitely shows that most of the Hungarian SMEs didn’t pay attention to prepare and rethink business processes after the crisis in 2008, and thats why COVID19 reached them unprepared.
However, businesses that could flexibly – in response to changed circumstances – rethink their short- and medium-term goals could provide the right resources to reach them (with classic project managing aspect), and they could succesfully got through the first obstacles.