Although it’s recommended in King IV, succession planning is often neglected because it’s an uncomfortable subject. The COVID-19 crisis should act as a wake-up call for organisations to ensure not only that they have a plan to govern an orderly succession for key senior posts, but also an emergency back-up plan, says Parmi Natesan, CEO of the Institute of Directors in South Africa (IoDSA).
“The current crisis should remind governing bodies that in addition to key management positions like the CEO and CFO, succession planning should also cover key board positions, including the chair of the board and chairs of board committees,” she says. “For example, the current COVID-19 crisis raises all sorts of issues for corporate succession plans. What if the CEO contracts the virus, or the CFO is forced to self-isolate? Organisations need to have not only a long-term succession plan but an emergency backup plan as well.”
She argues that a crisis such as this places unusual strains on the entire leadership team. One contributing factor is the protracted nature of the crisis, others include the need to completely reorganise the workforce to enable remote working, adopt new management practices suitable to a dispersed workforce, and conduct an urgent review of the business model and strategy. Moreover, all of these would have to be continuously reviewed as the crisis unfolds.
At the same time, of course, leadership is more important than ever during a crisis. If any of the leadership team is forced to take time out (because of overstraining or actual illness), the impact is extremely pronounced—as we saw when the British Prime Minister Boris Johnson was admitted to hospital with the virus and the Foreign Secretary took on his role.
“Organisations should have a full succession plan for each senior management position, which includes both an emergency and a long-term plan,” she says. “It is also worth pointing out that the emergency plan is likely to nominate an in-house resource, and effort should be put into giving those individuals the mentoring and training needed, including crisis response management.”
Courtesy: IODSA
24 April 2020 – The phased or risk-adjusted approach to lift the current national lockdown is welcome news for the agricultural sector, especially those industries mostly affected by the Covid-19 lockdown. As from 1 May, all agricultural activities can resume as normal, including industries such as the wine-industry (although the sale of alcohol will still be prohibited). The wine industry will therefore be able to produce and make wine but probably will need to store or export the produce.
Forestry will also be able to resume production as normal. It is important to note that the levels may vary between provinces and municipal districts, which may affect agriculture again, thus producers need to stay informed of what is going on. The interpretation of the regulations is somewhat ambiguous in the different provinces and this led to unhappiness in the red meat industry when auctions for example in the Free State were stopped and prohibited. Moving to Level 4 will hopefully sort out these challenges.
Other industries that will resume activity will be mining as well as all financial and professional services. This will also be positive news for agriculture in the sense that the deeds office will most probably resume activities and hence financial transactions, such as farm purchases, can resume.
Although most measures on Level 4 will be similar to Level 5 lockdown, the risk adjusted approach for lifting the lockdown is the most appropriate one to prevent another hard lockdown for the country. The South African economy will not be able to withstand another Level 5 lockdown. It is therefore imperative that we all adhere to the restrictions set out for as long as possible to protect ourselves and our economy.
By Dawie Maree, Head of Information and Marketing at FNB Agriculture
This directory provides a non-exhaustive listing of the various external research publications relating to implications of COVID-19 for the economy and agriculture.
Find the document here:
CoE Economics COVID-19 research directory (1)
Courtesy Agri SA
The purpose of this booklet is to collate information that could assist the SMMEs that operate within the agricultural sector. However, the information contained here might not only be specific to the agricultural sector, but could also be applicable to businesses operating in other sectors.
This document is compiled by the Western Cape Department of Agriculture
Download the document here:
Financial relief-COVID-economics.3-3
Courtesy Agri SA
