During a McKinsey Live webinar, senior partner Sven Smit discussed how business leaders can respond to the Russian invasion of Ukraine and its many consequences. While the COVID-19 pandemic created a global demand shock, the Ukraine war is already causing a global supply shock that will intensify the longer it continues.
What can leaders do in the face of disruption, uncertainty, and inevitable volatility?
- First and foremost, ensure the safety and well-being of your employees.
- Reactivate cross-functional plan-ahead teams, nerve centers, and other tools that have been helpful during the COVID-19 crisis.
- Develop models that reflect the current supply shock as well as the circumstances of your industry and company.
Companies must plan for every feasible outcome, from a near-term, diplomatic resolution to the hostilities to a more protracted and escalating disruption. By adjusting their plans as events occur, leaders can be ready to respond to a wide array of scenarios.
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For more on this topic, read “War in Ukraine: Lives and livelihoods, lost and disrupted.”