Assoc.Dr.Cevdet Kızıl

Agendas, discussions and exchanges of ideas about the corona virus continue at a recent pace. At this time, both individuals and businesses are going through a difficult process. However, a proactive action plan is required, rather than accepting and fully waiting for the process. It is essential that individuals and businesses analyze, examine, interpret and manage the current epidemic and its effects well from a visionary point of view. Making the right decisions for the moment and for the future is critical, and fate will be decisive. As a proverb emphasizes,”the master Captain becomes obvious in the choppy sea."

In this context, companies should first discuss the effects of the corona virus outbreak on a macro and micro basis. In other words, the general effects of the epidemic on the economy, its sectoral effects and its specific effects on firms should be determined separately. As is clear, the economic effects of the epidemic are not the same for all sectors and firms. In this case, it will be appropriate to develop solutions, plans and strategies in a boutique way. In connection with these, it seems correct to establish an optimal balance by reconsidering the allocation and planning of labor force in enterprises, work shifts and spaces. In the process we are in, some companies are laying off their employees. Although we are going through a bumpy road, in fact this is one of the last methods to be applied. Because human capital is the most valuable asset of a business. When the epidemic is over and the crisis environment returns to normal, it will be very difficult to return human capital transferred to competitors to business. It is important to note that machinery, equipment and even money can be compensated later, but human capital cannot always be compensated, and it can take a long time to replace it. It can also be easily said that employee loyalty and loyalty will increase in firms that are close to their employees during the epidemic process. In addition, we should not ignore the negative marketing and promotion role of layoffs. Scientific research also indicates a positive relationship between corporate social responsibility and business financial performance.

In addition, it will be correct for companies to review and evaluate their production processes and costs. In connection with this, supply chain management should be addressed and, if necessary, New decisions should be made. The company must form a circle with its employees, customers and suppliers, ensuring a transparent and complete exchange of information quickly. In this way, awareness of the current state of the process, decisions and expectations will be formed before all stakeholders. As for the supply chain, in particular, countries and regions less affected by the outbreak should be identified. By establishing connections with suppliers in these countries and regions, alternatives should already be developed against any negative potential impact.

In addition, businesses should reconsider existing sources of funding and incentives offered by the state, taking action by identifying ways to benefit. Oral agreements and written contracts should be examined and the conjuncture compliance audit should be carried out. Therefore, an approach that can repair the epidemic and its economic consequences, or even turn the process into an opportunity, must be adopted. Good firms get over crises, while very good firms get out of crises stronger by turning crises into opportunities. As Albert Einstein said “ " find simplicity in confusion. Catch harmony in the noise. In the middle of every challenge lies an opportunity”.

For example, General Motors (GM) is closing some of its facilities, but is simultaneously looking for ways to produce respirators for patients affected by the corona virus. Although the breathing apparatus is completely outside the business line of General Motors (GM), the firm is struggling to turn the crisis into an opportunity. 3M and Ford also decided to cooperate in the production of breathing apparatus. In Turkey, LC Waikiki decided to grant to the state by producing three million masks and displayed a good example of social responsibility. In addition, today, individuals spend more time on computers and the internet than they have ever done before. Therefore, online (online) trainings and consulting activities can also help at the point of turning the crisis into an opportunity. Furthermore, companies with reduced customers and reduced business intensity can work on projects that they could not devote time to before, and they can make their plans to implement these projects operational after the outbreak.

In order to be prepared for the economic impact of the corona virus on companies, consultants also have important tasks to guide business management. As a first step, consultants should list all sectors by creating matrices and tables, determine risk rates for each sector, positive-neutral-negative aspects of outbreak exposure, degrees of outbreak exposure, and products and services to be requested/requested. In addition, it would be wise to create three-stage scenario forecasting models in the form of optimistic-medium-pessimistic for sectors and businesses.

In addition, it is the right move for businesses to always check their liquidity status during the epidemic process. In particular, it is essential to have sufficient liquidity for the continuation of activities. Low liquidity in the business can pose a big problem in salary and debt payments. If liquidity is not at the desired level, firms should identify their inert fixed assets that are not used in production, which do not create efficiency and added value, and if necessary, turn them into liquid assets by disposing of them. Similarly, cash flow management and inventory planning should be carried out effectively. If businesses already have contracts with other businesses in which they do business, but counter businesses should have difficulty making their payments due to the epidemic, this method can be resorted to if barter is possible.

Like the accounting and finance departments, the human resources department must take responsibility for the epidemic process. Bearing in mind that the epidemic has psychological effects as well as economic effects, the psychological condition of the company's personnel should be monitored periodically. As a precaution, appropriate company vehicles can be allocated for the transportation of business personnel using public transport. At the same time, options such as reserve personnel and alternative assignments should be available against the risk of currently actively working personnel being affected by the outbreak. Definitions of other departments of employees in the business and familiarity with the work of employees working in these departments can also reduce the risks that may arise in the future.

IT departments should also encourage business senior management to establish automation and remote operation systems where necessary. In addition, digital business investments need to be accelerated. Automation, remote operating systems and digital business investments should also be checked for security vulnerabilities and vulnerabilities related to them simultaneously. Business personnel should be given the necessary training on data reliability and privacy issues.

It is also clear that the corona virus and its economic effects will not always continue in this way. Because, given the point at which technology and medicine have come today, there will definitely be a cure for the corona virus. So, what kind of world is waiting for us after the corona virus and what changes will happen in business life? Are we ready for the post-epidemic atmosphere and scenarios?

First, when it comes to working remotely and over the internet, businesses will achieve a certain level of learning and experience after the outbreak. Companies that see that they can eliminate a number of costs by working remotely and on the internet can change their activity structures and processes at certain rates. The application of flexible working systems will be further observed. At the same time, businesses will identify special teams for managing crisis environments, such as the epidemic incident we are in, and they will use these teams flexibly if similar situations occur in the future. However, companies will be more careful than ever to employ staff who are proficient in technology, have different characteristics and can replace each other. More transparent and honest communication channels will be created at all levels in enterprises.

In addition, there will be more alternative production processes, supply chain management processes, strategic and solution partnerships than in the past. Instead of full employment models, project-based employment models will be considered more. The economic and financial effects of Social Responsibility initiatives will be investigated more, and firms will occupy the agenda more intensively. Businesses will tend to hold more reserve money for contingencies than in the past. Firms will be more careful about liquidity control, cash flow management and inventory planning. Job rotation (rotation) and empowerment (empowerment) applications may also increase in the coming process. On the one hand, technology investment will increase, while cybersecurity, data reliability and privacy will be more sensitive.