By Linky van der Merwe

While the whole world is currently dealing with the Coronavirus, and more specifically known as the COVID-19 pandemic, the project management community has a responsibility to deal with this issue on our projects in a decisive, direct manner. What are the important things to do?

When faced with such an extreme risk, uncertainty and challenge, the first thing to do, is to arm yourself with accurate, comprehensive information to best prepare to manage through this crisis by making informed, thoughtful decisions. As Project Management Professionals we need to be planning for this on our projects. Of course this will include to put it on your Risk Register, including a series of scenarios, the expected impacts and mitigation actions with risk owners.

Take the project conversation to your Sponsor and Steering Committee to consider if the project should be put on hold or delayed. You will need signoff on decisions made.

Business Implications

According to a McKinsey article, on the COVID-19 implications for Business, published prior to the lockdown of several countries, there are 3 potential economic scenarios for the Coronavirus Disease. They are:

1. Quick recovery: The case count continues to grow, given the Coronavirus’s high transmissibility.  However, countries are able to achieve rapid control, as seen in China and the virus is assumed to be seasonal.
2. Global slowdown: Most countries are unable to achieve the same rapid control that China managed.  In Europe and the United States, transmission is high but remains localized, driven by strong countermeasures taken by individuals, firms, and governments, while virus is assumed seasonal.
3. Global recession: In this worst case scenario, the assumptions are similar to that of Global Slowdown, except the virus is not seasonal—i.e. unaffected by spring in the northern hemisphere.  Infection cases grow throughout the year, resulting in healthcare systems being overwhelmed for many countries.  A recovery in consumer confidence is pushed out to Quarter 3 or later.

The sectors to be most impacted by the pandemic, forecasted by McKinsey, are Aviation and Hospitality, as well as Consumers.

The immediate actions that organisations are expected to take, with application to dealing with this on your projects, are discussed in the next paragraph, based on the McKinsey recommendations.

#1 Protect Employees

• Provide clear communication to employees on what to do. Companies, and specifically Project Managers, need to provide clear, simple language to local management and teams on how to deal with the Coronavirus pandemic.  These recommendations should be consistent with best practices outlined World Health Organisation and other health agencies.
• Secondly, provide autonomy to local managers, so they feel empowered to deal with any quickly evolving situation.   With that said, corporates should also monitor and ensure guidelines are being safely followed.
• The third one is very applicable to Project Managers to remember. For any crisis, telecommuting has been an important tactic for maintaining operations.  Provide an infrastructure for remote work.

To this point, do the following:

• Allow employees to telecommute.  
• Train our leaders.  Leaders should be sensible and reasonable in their expectations as to when workers are available for work.
• Identify employees who are most crucial to maintaining business continuity. Ensure these employees have the proper tools and infrastructure to work remotely.
• Develop a disaster recovery scenario that incorporates telecommuting.

#2 Setup a cross-functional response team

We should set up a cross-functional Coronavirus response team that should include members from every function and discipline within the organization.  The leader of the team should report directly to the CEO.

This response team will have several workstreams, focused on the following areas:

• Center for communication and coordination
• Employee protection of health, welfare and ability to perform their roles
• Financials stress test and development of a contingency plan
• Supply Chain Management including monitoring, response and long-term plan within the context of Business Continuity Management
• Sales, Marketing and Customer engagement including responses to demand shocks. 

It’s important for this team to think through different scenarios, to create a single source of truth, to provide clear policies and guidelines, to monitor issues with rapid responses, to track adherence to policies, to update demand forecasts, to support supplier stability and more as applicable to the industry or sector you are in.

#3 Ensure sufficient financial liquidity

It’s recommended to have at minimum 3 months of cash at hand, to have an adequate buffer of stock or other parts at hand, to understand how prepared key suppliers are. 

#4 Stabilise the Supply Chain

The activities related to Supply Chain Management include medium-term risk management in our Supply Chain.  In the aftermath, there are long-term actions to take related to Business Continuity Management (e.g. supplier regional diversification).

On projects you should consider procurement commitments, including possible delay in deliveries of materials or bringing in contracted staff. A common occurrence on projects, is where people are outsourced from national or international Agencies and you need to consider the implications for those commercial contracts too.

#5 Practice Customer centric design principles

Engage with customers and ensure transparency. 

On projects you need to make communications on of your top priorities to address uncertainty, fear or possible panic.  Be open with your team, stakeholders, and your sponsor. Communicate your scenarios and plans, and then update with how events are affecting your project and changes to those plans.  Also plan for regular review cycles to reconsider plans and responses.

#6 Help the community

Look for ways to support the community. We should adopt strong Corporate Social Responsibility (CSR) practices.  Some important activities could include targeting nonprofits and community outreach organizations in your local area, encouraging our employees to volunteer.  Let others know what your organization has done. The communication should include only the most pertinent details, including the amount of funds committed, the key beneficiaries and recipients, and what you aim to achieve with your donation.

As Project Managers we have valuable skills to offer, so it’s important to link into responses among your wider business and social communities and offer your help.

Finally, you need to consider your own role. Who will step into your role, if you are taken ill? What about work-stream leaders and other key people on your project? Convene your top team and sketch out alternates for everyone – and alternates for those, if your project is big enough. Even consider the possibility of an orderly temporary shut-down of your project.

Sources:

1. How Companies Can Respond to the Coronavirus, MIT Sloan Management Review, 2020 
2. Coronavirus COVID-19: Facts and Insights, McKinsey, 2020. www.mckinsey.com 
3. Flevypro – Impact, implications and immediate actions.