Crisis management or management crisis? The level of professionalism is the answer.
On 26 February 2020, the Ministry of Health confirmed the first case of a person infected infected with Covid-19 in Brazil. A 61-year-old man presenting with respiratory respiratory problems with a history of travel in Italy was admitted to Albert Einstein Albert Einstein hospital in São Paulo. This fact marked in our country the countdown countdown to entering an economic crisis without dimension. A little over two months ago two months ago, an unprecedented scenario challenges professionals in all areas. Due to the characteristics of the "Coronacrisis", the main challenges have direct actions for the preservation of life and the economy, even going so far as to create even create polemics with this possible trade off1: preservation of life versus preservation of the economy. One of the measures oriented social isolation in order to flatten the contagion curve and avoid the possible curve of contagion and avoid possible overload of care and lack of hospital beds. hospital beds. The measure had direct effects on the economy, since it affected one of of its main aggregate components, which is the internal demand. It is worth It is noteworthy that some sectors of our economy already had certain problems because of difficulties in importing inputs and raw materials that came from countries affected by the pandemic.
Faced with this scenario, professionals working in strategic sectors had to make use of their In this scenario, professionals working in strategic sectors had to make use of their plans, but not to execute them, but to reformulate them. Crisis Management Committees were created both in the private sector and in the public administration, so that managers could draw new guidelines, create new new guidelines, create new tools and innovate production methods. Some measures taken were common among most organizations, such as of organizations, such as teleworking, holiday leave and use of the various Provisional Measures Several Provisional Measures that have made labor contracts more flexible. In the In public administration, the most recurrent problem was related to bidding contracts. bidding contracts. Due to the urgency of some acquisitions and the impossibility of the bureaucratic process usually required, it was necessary to take measures to facilitate these negotiations, such as the decree of a state of public calamity. of a state of public calamity. The official recognition of public calamity makes the budget limits and allocation of resources to health more flexible without committing a crime of fiscal responsibility. committing a crime of fiscal responsibility. Besides legitimizing the In addition to legitimize the establishment of legal regimes in order to mitigate impacts resulting from the calamitous situation.
At private administration, the biggest problem pointed out was the reduction in the profit margin margin caused by idleness in production, a natural consequence in scenarios of reduced demand. demand reduction scenarios. To overcome this problem, one of the strategies created innovation in new products, such as, for example, meeting the high demand for PPE (Personal Protective Equipment) for health professionals. According to information released by the Brazilian Association of Medical and Hospital Equipment (Abimo), the demand for masks for masks tripled in March. The high demand could absorb the production companies that have adapted their production and still continues to stimulate the entry more companies in this niche. The sectors that do not have the possibility of changing production are spending the minds of their managers and advisors, if not dismissing them for lack of option when the the only thing left to them is to stop their activities.
The current context highlights the products and services that are essential to human well-being wellbeing and how important the measures taken by trained professionals professionals who work in strategic management and leadership roles. Still Although the "Coronacrisis" presents new and different characteristics from previous ones one can affirm that the experiences and techniques in governance and risk management bring greater security to business. Even for small companies that do not have an administrative board structure or organizational chart capable of constituting a to constitute a Crisis Management Committee, one can affirm that the practices of governance governance, risk management and even compliance practices may and should be used in a manner adapted to the business.
In simplified terms, governance involves the management of conflicts of interest between owners, managers and other other parties involved, or let's say the stakeholders. Risk management is carried out identifying the events that, in some way, may impede the achievement of the objectives of the organization. Once the risks have been identified, the acceptance of these risks based on the risk appetite* set by managers. Then, it is carried out management of these possible events through strategies and plans to deal with their consequences their consequences in the best way or even to avoid them. Compliance, synthetically, means to be in compliance with the entire legal framework required to the type of business. The compliance with the laws must be in such a way that have all these processes mapped and registered in a certain form of internal control and internal control and demonstrative to the interested parties. A good complianceprogram program has ethical and sustainable basis that reaches all hierarchical levels and permeates the relations among all agents involved in the organization. The professionalized professionalized management of the business, whatever it may be, ensures the mitigation of mitigation of economic risks, better welfare conditions for employees and better stakeholder relationship with stakeholders. In addition to many other benefits, one must mention the value added to the business image. Unprofessionalised professionalized management is unaware of the risk appetite of the institution in management is to try to grow by consuming risk in a foie gras manner2. Therefore, the level of professionalism in management will determine whether there is a crisis management crisis management or a business management crisis.
"Many things we dare not undertake because they seem difficult;
However, they are difficult because we do not dare to undertake them. to undertake them" Seneca 7th century AD.
Misma de Paula
Economist and MBA GRC