While there still are many unknowns tied to the current health and economic storm, advisory firms need to apply some immediate discipline and focus to their practices to weather it.
Here are the four moves you should make, starting now:
1. Acceptance
From many years of management consulting through crisis and leadership training, I've learned this: The faster firm leaders "accept" a crisis, the faster they stabilize in it and capitalize in recovery.
We are a long way from the recovery stage of this crisis. But many firms are still operating as if nothing has happened.
Instead, they're trying to market their way out of a bad situation, get capital to deal with their spending problems and business mismanagement, grow revenue to recover the losses, and/or are still holding onto financial goals made at the beginning of the year.
Things are different now, and leaders must accept it.
Go back to the drawing board and get comfortable with where you are today. Acceptance is the first step to moving forward.
2. Continuity Planning
Many advisory firms have deployed their business continuity plans and now have employees working from home. But continuity plans don't deal with the crisis we are in today.
Demands are unique, including how to lead a firm when sick in quarantine, how to deal with evolving investment management philosophies, etc.
Every firm needs to review its continuity plan each and every day. Plus, it must be updated, reorganized and followed throughout the coming weeks, months and year.
