Lock down has given an opportunity to think from scratch; like Zero Base budgeting.

Business will re-start gradually, providing multiple opportunities”

• Survival Need; take Core team into confidence for substantial improvement
• Target to reduce major part of fixed salary; restructure  it with performance incentive
• Remove inefficient / underutilised resources by assigning additional responsibility
• Implement attractive Incentive Plan in all function; with transparency 
• Strict performance benchmark (30%-40% improvement) in all functions
• This informal partnership will build loyalty, stability and performers.
• Invariably collect data (develop MIS) in: procurement, production (all processes), quality, sales, inventory, supply chain etc.
• Inter Department conflicts has to go; both individual and team performance will matter
• Free flow of communication with core teamand management is critical
• Regularly compare Actual performance of all departments with Benchmarks – daily –weekly and monthly – for continuous improvement
• Outsource non-core / non routine  work – where full time person not required
• Convert Capex into Opex (lease – rental) / Allow Work from Home, if can be monitored
• Be transparent  and genuine in sharing – share some part of efficiency as incentive
• For Entrepreneurs, too difficult to implement but inevitable – since it will reduce fixed cost and improve efficiency; this will become a new routine (Stay light)

This is the time to set example of leadership and transparency which will eventually take organization into a different league and make it future ready.

“Something good comes out of every crisis.”

Your Virtual CFO

CA Sunil Shah