Management in times of crisis: How managers should act despite corona
With exit restrictions and closed restaurant doors, the mood in many businesses is clouded. Nevertheless, it is important to continue to move forward with new ideas. The restaurant and hotel industry is in temporary retirement. But employees expect managers to have the situation under control. Right now, the key is to analyse the situation, act with determination and take action.
A positive attitude is the prerequisite
Everyday life during a pandemic puts a strain on people both financially and psychologically. Entrepreneurs often think pessimistically at the beginning of such an exceptional situation. They fear that the business concept will not prove itself in the crisis. No one can accurately predict the effects of the shutdown. This paralyzes the decision-making power of managers and they overlook the fact that employees need confidence and leadership in this phase.
Optimism and positive thinking are important! Even if worries grow after work, managers must stick firmly to their plan the next morning. Healthy realism is the key: A positive attitude should not turn into wishful thinking. After the crisis, people will consume the gastronomy offers more consciously and maybe even start travelling again - due to ongoing border closures mostly at home. A detailed and controlled business plan takes location-dependent circumstances into account and prepares entrepreneurs for the coming months.
Take financial measures
The corona crisis sometimes puts entrepreneurs in a state of shock. Negative headlines and an uncertain end to the pandemic paralyse managers. They make things like cost optimisation and discussions with the bank more difficult. The only thought that remains is: "How do I get through the crisis?"
Optimize the cost structure and use all internal savings reserves: Entrepreneurs should postpone or, if possible, suspend what is currently not needed for operations. Meanwhile, politics and interest groups offer financial support. The existing marketing budget should be used for crisis communication. Customers want to know where they stand in these times. But work with existing resources! It does not help to drastically reduce or increase the budget. A well thought-out marketing plan prepares for a new start. Companies stay in touch with guests when they provide in-house information or messages about the resort. If restaurants and hotels offer good advice, they can keep their regular customers through the crisis.
Whining is a no-go
Sometimes managers tend to embellish or dramatise the situation in front of employees. Neither is very helpful. Entrepreneurs are best able to convince employees and customers of crisis management if they are credible - this includes showing honest feelings. However, complaining in front of guests is not appropriate. It destroys the hospitality and lightness that customers expect when visiting a restaurant.
Despite a lack of motivation and short-time work, chefs should contact their staff. The unusual situation requires understanding from both sides and thus has the potential to keep the team together. In tourism, the focus is on the beautiful things. Many people are helped by the thought of a holiday after the crisis. Convey to customers that they are looking forward to their visit after this difficult time.
Price reduction is not the last resort
Many entrepreneurs lower the price as a last resort. This seems to work at first glance, but companies often destroy what they have built up over years. Because price reductions do not solve problems in times of crisis.
Entrepreneurs should adopt an active pricing policy. Couple moderate concessions in price with price-psychological measures. A partnership discussion with the bank can work wonders and a business plan tailored to the situation does the rest.
Using the private environment as a source of power
To survive a crisis, the private environment must also be right. It provides a retreat where you can recover from the stress of work for a moment. If a source of strength is missing in the private environment, desperation and conflicts are the result. In family businesses, financial problems often lead to mutual recriminations. These rob you of strength and are not conducive to achieving your goals.
Leaders should cultivate harmony in family and partnership and openly address concerns. Exercise as well as healthy nutrition keep fit and improve the mood. This has a positive effect on interpersonal relationships and the working atmosphere.