Are You Ready? | STRATEGY COACHING

Our thoughts and prayers are with the people of Japan in this time of crisis. We can only empathize with the families of those who have perished or been lost so tragically.

The recent double tragedy in Japan appears to be spawning yet another crisis. Clearly, Japan’s preparedness for earthquake survival paid off in spades. Surprisingly, only a few structures were damaged by the earthquake. Unfortunately, the preparations for a tsunami were inadequate in this event. Clearly, no one anticipated the effect of the earthquake and the tsunami on the nuclear power plants.

Only a few days ago the urgent need was for food and clean water. The nations of the world have responded quickly and appropriately. But the effects of the damage to the nuclear reactors has created a need for a vast supply of Geiger counters and iodine tablets. Suppliers of these items were surprised by the need/demand. It is unlikely that many manufacturers of these items have huge stores of either in inventory. Yet demand is very high.

There is a business lesson here. You cannot anticipate every possible course of events or surprising outcomes of predictable events. Market opportunities tend to arise quickly, often surprisingly, and then disappear just as quickly. Sometimes the business that is not prepared with needed items on hand cannot respond because production time is too long. What you can do is build a process to enable your firm to react quickly to opportunities in the marketplace.

Set aside a time immediately after the busy season and invite the appropriate people within your firm. Determine a strong process for responding to unexpected opportunities in the marketplace. Then determine the right people to assume leadership roles in executing the process. Finally, share the process and the leadership team with everyone in the firm. Ensure that everyone understands the process and the need for immediate and effective response before the need begins to fade.

What are the kinds of events that could occur and require a timely or instant response from your firm? CPAs might need a process for working with their clients (and new clients) to assess damages and loss, and file appropriate paperwork with federal agencies and prepare a tax deduction for the loss. Financial planners might need to develop a quick response process to help clients understand any possible penalties for withdrawing invested assets or selling assets to obtain the cash to rebuild. They might also need a process for managing the process for their clients.

What other processes would be appropriate for your firm? Share your answers with our other readers by posting a comment.