As expected, companies around the world are facing headwinds like we’ve never seen before.
On one hand, there are some sectors benefiting from the crisis while the majority came to a grinding halt.
Although confronting situations like this provide an opportunity for organisations to innovate, the impact on many will be catastrophic. What’s worse, is the fact that no one anticipated the situation they found themselves in; a restriction on their right to operate.
Despite what we think about the Government’s handling of the health crisis in New Zealand, the actions we’ve taken as a country will hurt a lot of people through no fault of their own.
As the weeks roll on, more and more companies will hit the wall. Not because they were poorly thought through or underfunded but because no business operating in a democracy would ever suspect they would be prevented from trading unless they themselves got something wrong.
To be fair, the Government has put measures in place to try and help them reduce their expenses, however, it would be impossible for taxpayers to cover their costs completely. Instead, NZ’s shareholders, many of whom are small business owners employing less than a dozen people, will be working frantically to try and figure out if they can make it or whether it’s best to exit before they lose the lot.
The question on everyone’s mind, if not now soon will be, is whether it was worth it. Whether the actions the Government took were justified or whether they were an overreaction. Of course, the fact is, we may never know; albeit the loss of life we suffered in comparison to Australia suggests there may have been other, less costly ways to manage it that might have delivered comparable outcomes.
Either way, the conversations we are having today are still very different than the one we will be having in September (due date for the election). By then, we will know where things are at and whether the decisions the Government made ensured we dodged a bullet or whether they will be seen by the public to be a noose around our necks they needn’t have chosen.
Until then, let’s stick with the plan and that’s to stay in our bubble to the extent we can to prevent the virus from spreading.
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