COVID – 19: RE-OPENING THE ECONOMY

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    By Jacob Ipogah

    In Enterprise Risk Management, there is what we call ‘Natural Disasters”. These are unforeseen calamities that befall a business or an economy and give it setback. They are natural but could be triggered by human factors. For example, covid – 19 which has led to the lockdown of the global economy as we presently experience. These disasters are not insurable because they are not common or often.

    However, man also has natural ‘shock absorber’ to absorb the shock and manage the damages caused by these disasters and start again. These are management steps that help companies weather the storm and stay in the market.

    Here are some of the steps that businesses and economies can take.

    1. Business Adjustment Strategy. This is one of the strategies in Business Re-Engineering Method of Eco – Hoovers Consulting Ltd. This method talks about Staff Capacity Measurement in line with his or her responsibilities (for later discussion).

    It is a fact that organizations have made loss in this month of April and possibly next month because salaries have been paid on empty ground, income was not generated but expenses (salaries) were paid. An organization that pay salary of N1bn every month, paid N1bn this month without generating kobo and again pay another N1bn next month making N2bn without generating income has eaten into its balance sheet. Irrespective of its Assets base, it will definitely feel the impact of the months without income.  On this ground, some organizations will choose to cut down their workforce.

    But Business Adjustment  Strategy is saying, there is no need to lay off your workers rather employ the Productivity Quotient Analysis which is a sub of Staff Capacity Measurement Model to identify the Loss making branches or departments and the High profit making branches or departments, reduce the workforce of the Loss making departments, deploy them  to the High profit making branches or  departments to strengthen it to generate more income while reducing the expenses of the Loss making branches or  departments. Furthermore, a Bank Branch that is loss making, with no further debate, be converted to a Cash Center and ATM gallery and the staff be deployed to High profit making branches to generate more income. Capital projects should be on hold.

    1. Annual leave – one of the major reasons for annual leave is to give the brain an opportunity to rest, refresh and get ready for another round of tasks. The lockdown following the fight of the Covid – 19 has given compulsory leave to every staff to stay away from work. It makes no sense when businesses resume for staff to again apply for another leave. Though, leave are for purposes but it need to be sacrificed for the interest of the business.
    2. Corporate Entrepreneurship. This is the best time for the practice of Corporate Entrepreneurship. Companies should identify their selling products that meet consumers need and go into their production while producing less of alternative products.
    3. Restriction on Importation and promotion of “Exportation”. Micro Small and Medium Enterprises should be encouraged to produce goods that are exportable. This will assist in growing the GDP and balancing the economy. It will also lead to specialization of products which is also an advantage to the economy.
    4. Public – Private Partnership in the Health Sector. Private individuals should be encouraged to come into Health Business. Our health sector should be elevated to International standard, to discourage our rich men and women especially the politicians from transferring our money abroad on the ground of medical attention.
    5. Human Capital Development (Trainings). Strategic, Innovative and Creative trainings should be adopted to generate new business ideas.

     

    Jacob Ipogah is Principal Partner at Eco-Hoovers Consulting Limited and CEO, Continental Economy Magazine. He is a Banker and Economist. He is a member of the Association of Enterprise Risk Management Professionals and Fellow of International Association of People and Performance Development

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