COVID-19: Finding cost certainty amid economic uncertainty

The COVID-19 downturn is already underway and the long-term economic impact remains uncertain. Organizations have been exposed to unforeseen risks that range from loss of revenues and profits to the total shutdown of operations. How can they create greater cost certainty as they continue to manage the impact of this disruption

Cost management continues to be one of the biggest challenges facing CEOs today. Organizations should respond with sustainable, long-term strategies that enable them to thrive in times of uncertainty. By locking-down costs and exploring methods to operate in the new normal, organizations can position themselves to emerge as winners when the pandemic ends.

The unique nature of COVID-19 has fundamentally changed industry norms, and organizations will not be able to simply "copy and paste" their previous downturn strategies. Organizations will need to examine their positions, explore options beyond headcount reductions to weather the storm, and make more forward-looking moves to better position themselves for the aftermath.

In this report, we have outlined a pathway that guides organizations through the COVID-19 downturn by using a strategic lens to consider cost reduction and growth-focused moves.

Topics covered in this report:

• Cost containment. We focus on four key cost levers an organization can target during times of distress.
• Operating in the new normal. With COVID-19 restrictions in place for the next few months, organizations need to be able to protect key revenue streams and maintain their focus on costs.
• Emerging from the pandemic. As the economy begins to rebound, organizations must reprioritize efforts accordingly.