Above and beyond the intrinsic peculiarities of each company, the industry environment in which each company operates defines how it works.
At Management Solutions we do not believe in advisory work based solely on a “solid operating methodology.” Our clients’ needs require us to have expert industry-specific knowledge prior to performing our engagement.
Management Solutions structures all its practices into industry groups, integrated by professionals who work exclusively for clients in the industry covered by each group.
Our professionals work in multidisciplinary teams with an in-depth knowledge of the industry in which the client operates. This allows us to provide expert advice and apply methodology that is appropriate for each market. This knowledge, together with our functional specialization, allows our services to maintain the level of focus required by the market.
Covid-19 impact on the various industries
The Covid-19 crisis has highlighted the fragility of our economic and social model, and is having significant global impacts in addition to an already delicate pre-crisis context that was motivated by events such as trade wars, Brexit, or the effects of climate change, among others. The decline in global GDP per capita is expected to be substantially higher than the one in the 2008 crisis, although the recovery process is also estimated to be faster.
Both the health threat posed by the expansion of the new virus, and the containment measures taken by the authorities with the aim of mitigating the effects related to the spread of the pandemic, have posed a serious threat to the continuity of the operations of many companies, further generating strong strains in liquidity strains.
The most affected industries have been the ones whose services are closely linked to the mobility of people (Transport, Tourism), or those in which physical presence is a critical factor for their satisfactory provision (Hospitality, Culture and Leisure, Retail Trade –ex Food-). In addition to the above, the sharp drops in the demand resulting from the increased uncertainty, as well as the unemployment increase, have affected the rest of the industrial sectors (Real Estate and Construction, Automotive, Energy...).
There are other industries that have, however, highlighted their strategic nature throughout the crisis (Pharmaceutical, Food, Telecommunications...), whose demand has not been adversely affected in the short term – and has even been increased in some cases – but which are not exempt, for instance, from potential risks of increased delinquency, or risks arising from the interruption of the supply chain.
In any case, the proper management of emerging risks, organizational agility and efficiency, operational resilience, technological and innovation capabilities, and the search of opportunities arising from the new context have become, now more than ever, key elements for any type of organization.
Our practice in the face of the challenges presented by Covid-19
Management Solutions has incorporated practical and innovative solutions into its value proposition, allowing companies to face the challenges and opportunities that arise from the previous context, addressing 5 main axes:
Continuity of operations: Methodology for preparing or reviewing business continuity plans and the governance of crisis events, considering aspects related to the organization and HR, technology, facilities, suppliers and communication processes, with a special focus on preparation of tactical plans for remote work deployment, subsequent “reactivation” plans and monitoring processes to ensure adequate performance during the crisis. Including the design of Apps for the management of different events (call for crisis committees, management of protocols and communication with employees, etc.).
Management of liquidity risk, financial planning and management information: Key elements for the review of the liquidity contingency plans and methodology for the elaboration of scenarios that allow i) to carry out liquidity sensitivity / stress analysis and ii) to project the Income Statement in an agile way, in order to facilitate the identification of containment levers. Additionally, we offer our own methodology for the preparation or reformulation of strategic plans or operational planning and for the design and adaptation of management information models (information by business, cost distribution and profitability analysis, scorecards, etc.).
Anticipatory management of credit risk: Proposals for adapting anticipatory credit risk management strategies (clustering, modeling, sensitivity analysis, policy adaptation, mitigation levers, etc.) and optimization of the recovery process (analysis of the cost of the process at its different levels and adaptation of strategies, models, organization and processes).
Transformation and efficiency: Identification of key aspects for the transition to a strategic remote working model (conciliation, smart working, technological impacts, adaptation of Contact Centers, adaptation of agile methodologies, etc.). Methodology for the elaboration of dimensioning models, identification of talent and termination plans, processes optimization (eg. claims management, changes in the distribution model and multichannel service models, etc.), capture of new business opportunities and comprehensive efficiency plans to improve income and optimize costs.
Management and control of other risks: such as behavioral risk, reputational risk, technological risks, cybersecurity and fraud, resilience in the supply chain and business risks (adaptation of value and offer proposals, capture of opportunities and monitoring of competition, etc.).