The "5E's" of Crisis Management for Entrepreneurs during the covid-19 pandemic
TOPIC : The "5E's" of Crisis Management for Entrepreneurs during the covid-19 pandemic
Host : Tom Onguru, Brighter Edge Consultants, Founder and MD
Host's Profile
Organization: Brighter Edge Consultants
Designation: Founder and MD
Mr. Tom Onguru has over 20 years work experience with track record of achievements in manufacturing and service sectors.
In his most recent employment at The Kenya Institute of Management (KIM), Tom was the Head of Strategic Business Units (SBUs) overseeing six (6)
departments namely; Training & Conferences, Company of the Year Awards (COYA) /Special
Projects, SME Solutions Centre, KIM Membership, Publishing & Creative
Services/MANAGEMENT Magazine, Marketing & Corporate Communications. Because of his
passion, commitment and good leadership, he transformed SBUs from loss making to
unprecedented level of sustainability/profitability. For the 10 years that Tom worked in KIM, he
helped organizations conduct business diagnostic assessment of their processes to become
globally competitive using KIM’s Organizational Performance Index (OPI) - a Business
Excellence Framework used in ranking companies that participate in the Annual Company of
the Year Awards (COYA) and SME of the Year Awards (SMOYA), organized by KIM. Tom is a
Lean Six Sigma Black Belt Certified and also Quality & Productivity Improvement Master Trainer
for Japanese International Corporation Agency (JICA) on the Project of Enhancing Enterprise
Competitiveness in Kenya. He successfully led two major projects in KIM namely; Aviation
Business Excellence Awards (ABEA), in partnership with Kenya Airports Authority, and the
Kenya Youth Employment Opportunity Project (KYEOP) funded by the World Bank and
implemented by the Ministry of ICT, Innovation & Youth Affairs. Tom led high profile
delegations of Kenyan leaders to International Knowledge Sharing Programmes overseas
where his great leadership and interpersonal skills earned him accolades. His leadership
inspires even non performers to deliver extra ordinary business results. After his diligent loyal
service in the corporate world for 23 years, Mr. Onguru ventured into his own Consultancy
business and he currently the Founder and MD of Brighter Edge Consultants – a Training &
Consultancy company focusing on driving Business Excellence in individuals and organizations.
Tom has Master of Management & Leadership (MML) from The Management University of
Africa (MUA), Bachelor of Business Marketing (1 st class) from Limkokwing University of Creative
Technology- Malaysia, ICM Graduate Diploma in Marketing, Lean Six Sigma Black Belt
Certification. He is also Business Excellence Assessor and good emcee for corporate functions.
Areas of Training/Consultancy Expertise: Leadership & Management, Marketing, Lean Six
Sigma, Kaizen, 5S Quality Improvement, Business Excellence Implementation, Project
Management, HR Recruitment Services.
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View Host's Profile
THEME : Supporting MSMEs by creating equitable opportunities for MSMEs across the country
MONTH : July 2020
Focus Areas :
In this session, we will be unpacking three out the five "Es'' of managing crises applied to SMEs.
Engage
Explore
Explain
Tune in to the next Inuka Chat session for the remaining 2E's
Engage
Engage all business stakeholders in framing the COVID-19 crisis and get your framing right.
a). Understand the nature of the problem you are facing
Very important for meaningful response to the Crisis. What is the true nature of the problem we are facing: Debts, Salaries, Overheads, Reputation, Remote teaching (for schools) etc!
Identify patterns on how crises unfold and how to respond.
•Salary= Monthly; Rent =Quarterly; Overheads= Monthly; Other General = Monthly/daily; Teaching; Daily/Weekly; Reputation= anytime/Continuous.
b). Minimize Loss
The appropriate framing is to minimize losses both of finances and other risks.
Once devised, the framing should be communicated to all stakeholders (Employees, Landlords, Suppliers, Bank, KRA etc.)
Forecast how revenues will be affected by the pandemic-induced downturn.
Develop a range of scenarios tied to assumptions about the downturn’s severity.
Determine how soon your funds/ resources might be depleted.
c). Reduce Spending
Reduce capital asset investments.
Defer some purchases.
Improve capital project management.
Re-examine maintenance and replacement standards.
Refinance debt –replacement of existing debt with new debt whose T&C favorable
2. Explore
Explore the crisis and how to fight it (Pragmatic not just aspirational).
a). Once the problem is framed, prioritize and plan
Remember, how we got into the situation is not how we get out of it.. “Faith without action is….”
Foster down-to-earth expectations by focusing on the most pressing and achievable goals.
What is your priority and how do you execute it?
b). Communicate: Share information generously
Let people know what you are doing and why
Focus on the immediate solution but prepare for aftermath (post-crises) BC/DC/AC
Post-crisis next steps and how to return to normalcy.
Provide hope and resolve so as to reduce the chance of stakeholders being swamped by negative news
3. Explain
a). Explain what you have decided, why and how it will work, then commit to action.
In a crisis, inaction always makes the problem worse /Analysis Paralysis.
A failed action may teach you something that leads to a breakthrough. But failure can lead to panic, chaos and a loss of credibility unless you prepare the ground beforehand.
Have three lines of defense.
Crisis managers should go into battle with at least three lines of defense.
Explain the logic informing your plans and convey clearly to all your stakeholders that should the first attempt fail, there are two less preferred, but still possibly viable man oeuvres up your sleeve.
*Remember: Without a full explanation, stakeholders get the impression that the situation is worse, leading to panic and negative reaction.
b). How to Communicate
Use videoconferencing, Facebook Live, other technology to get the word out and gather feedback.
Technology allows new voices to participate.
Use social media and the schools website to provide updates.
Good morning everybody! I trust you have been well
2020-07-03 06:28:37
2020-07-03 06:30:42
Welcome to yet another edition of the Inuka Mentorship session. Our topic today is The "5E's" of Crisis Management for Entrepreneurs during the covid-19
2020-07-03 06:30:42
2020-07-03 06:32:52
Good Morning Moderator. I'm well this morning. Looking forward to learning about the 5Es of Crisis Management
2020-07-03 06:32:52
2020-07-03 06:36:48
Great! It couldn't have come at a better time. I look forward to learning from the host and other colleagues on Inuka on what has proved to work for their businesses during this unprecedented season
2020-07-03 06:36:48
2020-07-03 06:41:53
Good morning moderator. Am doing fine this cold morning. Ready to warm myself with the Inuka SME ideas.
2020-07-03 06:41:53
2020-07-03 06:46:53
Good morning Fred. Great to have you here once more. We hope the insights will warm up your morning!
2020-07-03 06:46:53
2020-07-03 06:51:23
Our topic today is The "5E's" of Crisis Management for Entrepreneurs during the covid-19 pandemic and our host is Mr. Tom Onguru. Tom is the Head Of Business Solutions Centre at Kenya Institute of Management. He has over 20 years work experience with a track record of achievements in manufacturing and service sectors. He has helped organizations conduct business diagnostic assessment of their systems/ processes to become globally competitive, thus moving from good to great. We couldn't be more honoured to have him lead the session today
2020-07-03 06:51:23
2020-07-03 06:53:42
As we wait for the start please feel free to start sharing your messages / questions / comments around today's topic
2020-07-03 06:53:42
2020-07-03 06:55:19
Everyone is saying that this is the new normal. What is this new normal and what does this mean for small businesses?
2020-07-03 06:55:19
2020-07-03 06:55:34
Good morning, looking forward to the discussions today
2020-07-03 06:55:34
2020-07-03 06:56:48
Today we shall cover 3E's out of the 5E's the three being, EngageExplore
Explain
2020-07-03 06:56:48
2020-07-03 06:57:44
Welcome everybody to today's chat on crisis management during the covid-19 pandemic. This is a much-needed conversation for MSMEs on how businesses can manage and plan for recovery. You are welcome to like any insights that resonate with you or share them on twitter using the hashtag #InukaSMEchat and tag @Ongurutom @InukaSMEchat
We look forward to an engaging session!
2020-07-03 06:57:44
2020-07-03 07:00:25
Ladies and gentlemen, please help me welcome our host Mr. Tom Onguru, Head Of Business Solutions Centre - Kenya Institute of Management. He's here and ready to take us through the session
2020-07-03 07:00:25
2020-07-03 07:01:02
Creating a crisis management plan seems like a daunting task for small businesses that did not have one prior to the Covid-19 pandemic. Where should one start?
2020-07-03 07:01:02
2020-07-03 07:01:47
My second question, what can MSMEs do at the moment given the uncertainty of when the pandemic will end? What is the best way to handle the situation?
2020-07-03 07:01:47
2020-07-03 07:02:02
Good Morning entrepreneurs ! I am glad to be here for interactive engagement with each one of you on this subject of crisis management. Welcome all
2020-07-03 07:02:02
2020-07-03 07:02:04
Welcome Mr. Onguru, we are glad to hear from you today. This is a necessary conversation for businesses in this period.
2020-07-03 07:02:04
2020-07-03 07:06:19
The starting point is scoping the crisis to understand its magnitude and nature of its impact on the business. Thereafter develop a crisis plan
2020-07-03 07:06:19
2020-07-03 07:07:02
Crisis Management is the process of planning, preparing, implementing, and testing an organisation's capability to sustain critical business functions when normal operations have been unexpectedly disrupted. Crisis Management involves the development and implementation of emergency response procedures designed to maintain the continuity of critical business functions along with the timely recovery of disrupted services.
2020-07-03 07:07:02
2020-07-03 07:10:20
Glad to be here ,looking forward to an amazing interaction,
2020-07-03 07:10:20
2020-07-03 07:10:59
Apply the the 5Es of crisis management ...1.Engage the stakeholders i.e employees in scoping the problem and identify immediate concerns that put the business at risk and how to address them...suspend unnecessary purchases, minimise loss in the business bu focusing only on things that add value or can help generate more revenue; Refinance debts you have
2020-07-03 07:10:59
2020-07-03 07:12:06
good morning all
2020-07-03 07:12:06
2020-07-03 07:12:26
am happy to be part of this program
2020-07-03 07:12:26
2020-07-03 07:12:52
Greetings from the City of Kisumu...
2020-07-03 07:12:52
2020-07-03 07:13:48
Good morning entrepreneurs, managing crisis situations is an informative topic. As a dairy farmers I have issues with delivery of milk to consumers alot of it hats spoiled due to this
2020-07-03 07:13:48
2020-07-03 07:17:31
i have issues with payments of rent from tenants
2020-07-03 07:17:31
2020-07-03 07:18:37
The new normal means we may have to change how do business, leverage on technology to reach our stakeholders especially clients and moreso adopting e-commerce because we may not go back to our old system. COVID-19 is here to stay with us and we must align with the health standards stipulated by WHO. That might also require we look at expenses for instance office space expenses since we can now work at home. The new normal also opens gig economy where we are going to see a lot of freelancers where employees might not be interested in permanent and pensionable jobs. Those are the new dynamics that are coming to play. As business people we need to align ourselves to this new realities.
2020-07-03 07:18:37
2020-07-03 07:20:03
I think the process of letting part of your employees go is part of a crisis. How can employer deal with the guilt of having to lay off employees?
2020-07-03 07:20:03
2020-07-03 07:25:55
This is where innovation comes to play. Find out ways to reach your customers faster and employ ways to extend freshness for your milk. Also engage experts on ways to convert your milk to into powder or convert the milk to yogurt. You can also reach out to Kenya Dairy Board for more suggestions.
2020-07-03 07:25:55
2020-07-03 07:28:31
Speaking of developing a crisis plan, what does this look like and what are the steps involved in creating a crisis management plan?
2020-07-03 07:28:31
2020-07-03 07:31:59
Have a mutual agreement with the tenants where you can agree on a structured rent payment where they pay a percentage for a period. You need to isolate genuine tenants that have been affected by the pandemic whose income has been affected. Then have a structured agreement with these tenants affected on how they are going to pay the rent within the period they are affected. Employ a scattered payment strategy over a period of time e.g six months after things return to normalcy. The most important thing here is empathy. As landlords we need to be empathetic because everyone is affected by this crisis. In case as a landlord you have a loan you can talk to your bank to restructure your loan so that it eases your strain.
2020-07-03 07:31:59
2020-07-03 07:32:09
Many people think having a communication structure is just for big organizations. Do you think this is important for SMEs to have too?
2020-07-03 07:32:09
2020-07-03 07:38:30
Hi Tom. With employees and their managers working from home due to COVID, there is a likelihood of communication breakdown leading to lost opportunities. What can businesses do to communicate better?
2020-07-03 07:38:30
2020-07-03 07:38:35
It is unfortunate that business people may have to make tough decisions like this in order for the business to remain afloat. secondly, the recently enacted law you have to be cautious in how you let go of employees. In the 5 Es crisis management, the first e is about engagement. It is important to engage employees to enable them to understand the nature of the problem the business is facing and therefore there are different options of releasing your employees. One of them is asking staff to take unpaid leave until normalcy returns by so doing they are guaranteed of a job when things go back to normal. But at the end of the day, as much as we want to be so human the interest to keep the business afloat ethically take precedent and if you decide to let employees go ensure you follow labour regulations.
2020-07-03 07:38:35
2020-07-03 07:40:43
Thank you Tom. I will definitely look into the matter once the financial situation improves
2020-07-03 07:40:43
2020-07-03 07:41:51
Thank you TOM
2020-07-03 07:41:51
2020-07-03 07:45:23
And we are glad to have you on the Inuka MSME program
2020-07-03 07:45:23
2020-07-03 07:46:26
Karibu sana Nixon. Always a pleasure to have you on the chat.
2020-07-03 07:46:26
2020-07-03 07:46:33
Tom this may not be part of today's topic but I need to find a mentor in modern small scale dairy farming to consult on issues am facing even after the crisis is over moving forward
2020-07-03 07:46:33
2020-07-03 07:47:52
Team as you participate, please note you can tweet out messages from this forum by clicking on the twitter icon next to the message. You can also like the messages you find insightful
2020-07-03 07:47:52
2020-07-03 07:50:57
The crisis management plan should include specific actions that have to be taken by the business in a crisis. An effective crisis management plan should have clear objectives. Some of the objectives of a crisis management plan may include 1. Safety of employees, visitors and public. 2. To update all stakeholders in realtime so that the source of information is accurate and authentic 3. Survival and recovery of the business with minimal damage.
2020-07-03 07:50:57
2020-07-03 07:53:57
1. Identify all possible types of crises. (Financial, Personnel, Organisational, Technological, Natural)
2. Determine the impact of each type of crisis on your business.
3. Consider the actions you’d need to take to resolve each type of crisis.
4. Decide who will be involved in the actions you need to take in each scenario.
5. Develop resolution plans for each type of crisis.
6. Train everyone who needs to be familiar with your plans.
7. Revisit and update your plans regularly and when necessary.
2020-07-03 07:53:57
2020-07-03 07:56:54
As part of supporting employees during this period maybe planning to have them work in turns so that they won't have to lack income completely while still serving you business needs if they are in agreement would be of help
2020-07-03 07:56:54
2020-07-03 07:59:50
Yes, it is important for SMEs to have communication structures however small it is. This may not really require setting up a communication department but an SME can have a spokesperson/ owner of the business to engage stakeholders and explain what the business is doing, why they have taken certain decisions and how those decisions will work. This structure is important so as to avoid rumor mongering and unfounded speculations about business sustainability.
2020-07-03 07:59:50
2020-07-03 08:04:35
As the owner of the business you need to share information generously. Let people know what you are doing and why. The practical approach to this is to set-up a command centre/crisis response team from where all information about business crisis management emanates from. Engage your employees on a regular basis through video conferencing, facebook live or different technology platforms available to keep the team updated as well as get updates on business performance from team members.
2020-07-03 08:04:35
2020-07-03 08:05:23
9. How to communicate during a crisis?
a. Maintain good communications and manage relations with all staff levels
b. Advise senior management
c. Instil the importance of the Business Continuity Plan throughout the organization
d. Liaison with local government agencies such as the ministry of health
e. Prepare and disseminate timely and accurate information to all employees
2020-07-03 08:05:23
2020-07-03 08:05:28
Suppose we have a private school, now the goverment seems to reopen in January 2021,how can we deal with our cost and students during this period of crisis
2020-07-03 08:05:28
2020-07-03 08:07:12
Yes, I totally agree. It's good to be empathetic because we need these employees after the crisis and you want them to remain your ambassadors during the crisis.
2020-07-03 08:07:12
2020-07-03 08:10:30
Reduce spending by doing the following. 1. Reduce capital asset investment 2. Defer some purchases that are not necessary 3. Re-examine maintenance and replacement standards 4. Re-finance/Restructure debt. Regularly engage students either through WhatsApp using their parents numbers or if you have online platforms just engage them by providing notes and tests.
2020-07-03 08:10:30
2020-07-03 08:12:45
Hi everyone, we will soon be wrapping up as our allocated time is up
2020-07-03 08:12:45
2020-07-03 08:13:11
Thank you very much. This was interactive chat. I trust that the tips shared will be instrumental in your business pursuits. We look forward to engaging you in our next mentorship chat.
2020-07-03 08:13:11
2020-07-03 08:17:44
The 5E’S
Engage -Define the problem, lay the groundwork for the tasks, make connections from known to unknown, identify relevance.
Explore –Use teamwork to explore the problem; share and build knowledgebase. What alternatives are available? (plan and prioritize)
Explain –Explainto stakeholders the nature of the problem, the discoveries and processes that have been learnt. Use effective media
Execute–Implement your preferred strategy/option. No Procrastination! Learn how to apply it to other situations
Evaluate -What worked, what didn’t work, what lessons are learnt for application in future in case of a crises.
2020-07-03 08:17:44
2020-07-03 08:19:19
One Last words
Recommendation:
•Develop empathetic relationships. Put people first by establishing strong partnerships across the organization, built on transparency and trust. This can help to govern, monitor and track progress to achieve resilient, intelligent operations during an unprecedented crisis.
•Enable secure office environment leading practices and policies. Help teams to work from home and amplify secure office environment leading practices policies—it is important to accept that not all work can be done remotely.Adjustexpectationsaccordingly,bothwithinyourteamsandwith your stakeholders.
•Be pragmatic about technology. Set up a command center to oversee all employee requirements and better manage a virtual workforce.
•Be nimble and innovative with the latest technologies. Consider solutions that ensure distributed teams can connect and collaborate effectively. For example, a simple self-reporting system, where employees can give feedback on their login times, transactions processed and business updates.
•Stay connected. Consider running video sessions between multiple colleagues—supervisors, subject matter experts and team members—to maintain the quality and compliance around how to deliver service. It can also support the safety and well-being of people more effectively
2020-07-03 08:19:19
2020-07-03 08:24:34
Ladies and gentlemen, help me thank Mr. Tom Onguru for his insights during this session!
2020-07-03 08:24:34
2020-07-03 08:26:07
Thank you for your time and your wisdom Mr. Onguru. We really appreciate.
2020-07-03 08:26:07
2020-07-03 08:27:31
Thanks to all our Inuka entrepreneurs who were able to log in and participate or just join and follow the conversation. You all have contributed to the success of the session. It is our hope that you found this helpful and it was time well spent
2020-07-03 08:27:31
2020-07-03 08:28:52
Incase you joined late, please note you can find a transcript of this chat on the website chat archives. You will also find past chat session transcripts there
2020-07-03 08:28:52
2020-07-03 08:35:17
As you have an account on Inuka, you can access the training modules which are free of charge and provide good practical training that one can adopt. I urge you to curve out an hour out of your schedule daily to go through the content and complete the training and see what you can begin to apply in your business
2020-07-03 08:35:17
2020-07-03 08:42:13
Thank you once more and we wish you a brilliant day and weekend ahead. Also wishing you all success for your businesses!
2020-07-03 08:42:13
Exit
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