Over the last two months, I have held dozens of Board of Directors meetings and one-on-one deep dives with scores of business leaders. Every one of these leaders is dealing with uncertainty and a crisis of some sort. Some are more serious than others, but none are immune. 

The following are some critical takeaways from these Board Room sessions as well as fodder for your future. I am confident the insights, strategies, and optics we discussed in our recent meetings will be invaluable for you as well. 

Volume 1 – Lead from the front

There are only two primary outcomes in this environment:

• Survival
• Stability (cash flow neutral or better)

The level of engagement and intensity of doctors in an emergency room is vastly different from what typically happens elsewhere in the health care system. In an emergency room, speed, optics, and intensity are your friend. The same applies to business leaders – Yes Optics, flexibility, and speed are mandatory.

The single most important ingredient to flexibility in a turbulent business environment is cash on the side-lines. In case you missed it in the news, thousands of the largest companies in the UK and US have drawn down 100% of their line of credit at the bank.

Wall Street and City has a mantra: “Risk-ON…Risk-OFF.”

When Risk is “ON” the pros know it is time to be aggressive because the coast is clear; there are no thunder clouds on the horizon or hurricanes on the radar.

“Risk-off” is a time for extreme caution: The visibility is poor, the floorboards are rattling, and the roof is leaking. You know one-third of sales and marketing teams in the UK are furloughed. 

One of the most painful expenses to reduce in a crisis is payroll. The reasons are obvious. As business leaders, we typically know these people and hate the idea of hurting them financially with a layoff or furlough. 

Question: How much are my cash reserves and How do I make sure I am not depleting them with excess spending today?

Thinking Time!

You can thank me later.

Baskar Sundaram