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D E B C A Nerve-center integration Financials stress testing Customer engagement Workforce protection Supply-chain stabilization Companies are responding to the outbreak with five sets

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Business Continuity Advice From: McKinsey & Company's March 2020 Executive Briefing

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D

E

B

C

A Nerve-center integration Financials stress testing

Customer engagement Workforce protection

Supply-chain stabilization

Companies are responding to the outbreak with five sets of actions.

5

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A

“Issue map” and management

 Single source of truth for issue resolution and ensuring surge resources where needed

Portfolio of actions

 Trigger-based portfolio of actions across all work streams

Leadership alignment

 Alignment of leaders on scenarios

 Roundtable exercise

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Workforce protection

B

Workforce policies

 Policy 2 pagers

 Escalation criteria/call trees

 Portfolio of actions

 Preventative actions

2-way outreach

 Multichannel communications

 Confidential feedback/reporting channels

Contractor management

 Contractor policy alignment

 Confidential feedback/real-estate-contractor incentives

Work-from-home support

 3-tier split (ie ,all ,some ,or no work from home)

 Infrastructure setup (eg, virtual private network, telephony, broadband)

On-site work norms

 Staggered work times

 Social-distancing norms

 Health checks

 Productivity ideas

Stakeholder engagement

 Local/federal-regulator and public-health-official engagement

Issue management

 Issue map

 Clear resolution owners and deadlines

7

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Supply-chain

stabilization

Supplier engagement

 Cross-tier risk transparency

 Supplier restart

 Order management

 New supplier qualifications

Logistics

 Ports

 Logistics-capacity prebooking

 Route optimization

Inventory management

 Critical-part identification

 Part rationing

 Location optimization

Demand management

 Sales and operation sku-level demand signal estimates, by macroscenario

 Production

 Sourcing plan

8

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Customer engagement

B2B transparency

 Communications to B2B customers (E, on

microsites)

 Scenario-based risk communications

Customer protection

 Prevention interventions across customers journeys

 Customers-team training

 Execution monitoring

Customer outreach

 Customer communications on COVID-19 practices

 Fact-based reports on issues

 Situation communications

D

9

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Financials stress

testing

Scenario definition

 Relevant scenarios based on latest epidemiological and economic outlooks

Financials stress testing

 Financials in different scenarios, especially working-capital requirements

E

10

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Thank You

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