ProposalCOVID-19 Strategic Response LabDeloitte, April 2020

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To ensure survival after the COVID 19 shock, organizations need to anticipate implications for their business environment in 6-24 months and to identify appropriate strategies

After immediate tactical measures, corporates need to focus on strategic responses

Organisations will need to react to COVID-19 along three horizons

of operations?•How to protect people and assets?•How to stay in contact with key clients?

Assure continuity Thrive in a post corona worldRecover control

To minimize losses during the COVID-19 crisis, organizations need to anticipate the potential scale of the crisis within the upcoming 4-6 weeks and to define tactical measures

K E Y Q U E S T I O N S

• How to ensure the continuity of operations?

• How to protect people and assets?

• How to stay in contact with key clients?

K E Y Q U E S T I O N S

• How effective are the policies taken by governments across the globe?

• To what extent will customers be affected?

• How resilient are IT landscapes?

Every crisis also bears opportunity. To ensure full recovery from the COVID 19 shock and long-term survival, organizations need to look at the 2-5 year time horizon in order to anticipate their future business environment and reshape strategy

K E Y Q U E S T I O N S

• How will your customers' needs and buying preferences change because of COVID 19

• What will be the lasting the impact on the work force , supply chains, and business/operating models?

FOCUS OF THIS DOCUMENT

Tactical Horizon Short- to Mid-Term Horizon Long-Term Horizon

CURRENT RESPONSES TO THE CRISIS STRATEGY DESIGN

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Companies will seek clarity on, and a robust strategy for short- to mid-term implications (6-24 months)stemming from COVID 19.

These implications can be especially drawn from political, social and economic drivers. Already today we observe how the workforce finds new ways to work together and how halted value chains are bypassed.All industries are disrupted.

To be successful in the future, companies will have to identify their individual industry implications of, and response strategies for the COVID 19 pandemic.

COVID-19 brought volatility in business environment and requires strategy response

What is the situation? What is the challenge? What is our solution?

The virus COVID-19, is continuing to spread all over the globe leaving us with a profound impact on society and business.

Due to its high infection rate and impact on public health system, governments have begun to limit public life, and thereby impacting significantly production, supply chains, travel, trade and how people work.

This development is disrupting value chains, communication and cooperation among business environments. While it is expected that COVID-19 might follow a similar path as in China (stagnation in growth within few months) it is certain that companies will have to operate differently in the short/mid-term future.

Built upon our proven scenario methodology and facilitated by internal and external key experts, we offer a digital COVID 19 three part Strategy Response Lab based on general scenarios.

This is aimed at helping you to:

• Develop company specific COVID 19 scenarios

• Identify implications for your market stakeholders (i.e. partner, regulators)

• Define initial short-term strategies, incl. no regret moves

• Discuss first operational next steps to react quickly to sudden market moves

What will my COVID 19 business

environment look like?

What should be the mid-term

strategic response?

What are the key disruptions

for my business?

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The Strategic Response Lab sessions will be designed for 10-25 participants of the following groups:

The Strategic Response Lab, built upon Deloitte’s initial COVID19 analyses, will guide your team througha structured process, identifying implications and next steps

COVID-19 Strategic Response Lab: Key Characteristics

Content Participants

The Strategic Response Lab will be specifically tailored to your needs and requirements, answering the following questions:

• What do client specific scenarios in the current COVID 19 characterized environment look like?

• Which implications for your stakeholders (e.g. distribution partners) can be drawn?

• Which position will you take in each scenario and which initial strategic actionsmust be pursued?

• How to operationalize the prioritized strategic actions?

Agenda –Strategic Response Lab

1. Introduction into scenario planning2. Recap COVID-19 general scenarios3. Development of client-specific scenarios

4. Scenario interpretation on impact on business environment

5. Derivation of strategic options6. Identification of operational next steps

Illustrative

The Lab will be delivered digitally and in three parts.

CLIENTMANAGEMENT

EXTERNAL EXPERTS (OPTIONAL)

DELOITTE SUBJECT MATTER AND

INDUSTRY EXPERTS

Move quickly, provide guidance, act in your customer’s interest!

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We will lead you through a structured approach to define your specific scenarios and to initiate a discussion on implications and strategic options

Proposed Structure of Three-Part Strategic Response Lab

TIME TOPIC DESCRIPTION

30 min

180 min

30 min

90 min

60 min

120 min

45 min

15 min

Welcome & Introduction in Lab Methodology

Client specific COVID 19 Scenarios

Deep Causes

Implications along Scenarios

Success Factors

Your Strategic Positioning along Scenarios

Operationalization

Wrap up and Next Steps

Introduction of participants, lab methodology and preliminary analyses

Development of client specific COVID-19 scenarios based on the identified market & COVID-19 drivers, incl.:• Driver analysis along impact and uncertainty• Identification of critical uncertainties• Correlation analysis• Definition of scenario framework and narratives

Derivation of key causes for the development in the business environment with focus on client industry and highly impactful events and triggers

Definition of specific implications in the respective scenarios with focus on customers, partners, competitors, and regulators

Definition of crucial success factors and core beliefs (what needs to be true), based on identified implications

Determination of how you would position yourself in each scenario and which initial strategic actions would be required to be successful (greenfield exercise)

Operationalization of prioritized strategic actions (applying the RACI framework)

Development of next steps and possible further actions to be taken

Part OneScenario Lab- 4 hours -

Part TwoImplications Lab-2 ½ hours -

Part ThreeStrategic Options Lab- 3 hours -

I N T E R M I S S I O N [May take between 30 min to one day]

I N T E R M I S S I O N [May take between 30 min to one day]

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Our recent remote working experience proved that digital tools enables all attendees to share knowledge and generate proactive participation culture

How to conduct the Strategic Lab Virtually?

Remote workshop rules Potential tools to be used

Sound and Video - possibility to hear and see individual workshop participants

Contribution - each participant has the same opportunityto express his or her opinion

Speed - each workshop is structured and managed at an appropriate pace

Sharing - each participant has the opportunity to share and view documents

Simplicity - tools are available from different platforms / infrastructures

Transparency - each participant has access to materials shared by other participants

Intuitiveness - tools do not require additional training, there are no barriers for the users

Structuring the discussion

(observations, idea, concept and conclusions) with easy modification and accessibility

Evaluation, selection and prioritisation

(democratisation of voting, anonymity and visualisation of results)

Hangouts

MS Teams

Skype

SurveyMonkey

Zoom

CrowdCast

Mural Miro

Google Forms

Google Draw PPT

Mentimeter

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Within two weeks, we will identify specific COVID 19 market trends and conduct the strategic response lab, given all key participants are available

Project Timeline and Pricing

Project Timeline Organization & Pricing

Kick-Off, incl. Scope Setting and Participant Coordination

Trend Identification with Expert Interviews and Desktop Research

Digital Set-up and Coordination of Online Survey and Lab Sessions

Online Survey (Open to all Participants)

Strategic Response Lab Sessions (Digital Workshops)

Development and Detailing of Narratives and Implications

W E E K 1 W E E K 2

Scenario Lab

Implications Lab

Strategic Options Lab

Hand-Overof Deliverables(see next slide

for details)

Project Organization

In week 1, we will identify client-specific COVID-19 market trends with expert interviews. In week 2, we will conduct all three parts of the strategic response lab series.

To conduct the project in the given time frame we require your full cooperation and input.

DEDICATED DELOITTE TEAM:1 Partner (0.5 day/week), 1 Director (1 day/week), 1 Manager (4 days/week), 1 Consultant (5 days/week), 1 Consultant (2 days/week)

PRICING

Fixed Cost:

€20,000 (excluding VAT)

This excludes expenses, which will be billed at cost.

Illustrative

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We will deliver key trends and scenario narratives, incl. drawn market implications and an initial set of jointly identified strategic options

Deliverables

Trend Impact-Uncertainty Analysis

Ranking of client Specific COVID 19

trends andidentification of critical

uncertainties

CriticalUncertainties

Identification of the most crucial, uncertain

trends

ScenarioNarratives

Concise and Comprehensive story of scenario characteristics

Market StakeholderImplications

Implications drawn from each future scenario

Initial StrategicOptions

Initial set of strategicactions drawn from each

scenario

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Copyright © 2020 DeloitteAll rights reserved. Member of Deloitte Touché Tohmatsu Limited

Thank you. Grzegorz CimochowskiPartnerFinancial Sector Industry LeaderPolandgcimochowski@deloitteCE.com