Management Tips for Agribusinesses in the Time of COVID

Businesses are navigating uncharted waters in 2020. A “return to normal” may not be possible and may not even be desirable. The future is uncertain, but it remains the future. Those businesses who are resilient and adaptable are the ones that will create the future.

The uncertainty and anxiety (among customers and employees) have created problems to be solved and opportunities to address. The management strategies of the past may still be valid but should be examined in the context of an uncertain future. Here’s a few tips to navigate the near future.

  • Employee and customer safety are the top priority. This should always have been the case, but a pandemic has reminded managers that bad things can happen to good businesses.

  • Communicate MORE OFTEN than before…with employees and customers. Communicating early, often, and clearly can do much to allay fears and lower anxiety… even if you have to say, “We don’t know yet, but we’re working on it.”

  • Develop or review contingency plans. “This is what we will do if…” should be the guiding prompt for anticipating what might happen, and how to address it. Few agribusinesses saw the pandemic coming. But, now that it’s here they can anticipate some of the circumstances and plan to address them. This is what we will do if…. “an employee tests positive”, “a customer tests positive”, “a key vendor closes”, “our top customer shuts down”, etc.

  • Review or develop cross-training for employees and management. For years I’ve encouraged businesses to develop succession plans to ensure that the business goes on in the absence of key personnel. Often, we called this a “drop dead” test for key employees. The gallows humor of this seems inappropriate but the reality seems distressingly appropriate in 2020. A colleague of mine at Cornell University, Rich Stup, uses a term that is most descriptive. He says that every position in the business should have a “designated successor.” This designated successor should be ready to step into an assigned role quickly and seamlessly, i.e. they should be cross-trained.

  • Respond to the present but prepare for the future. Contingency planning and cross-training can be great helps to create a resilient business. Immediate and appropriate responses can ensure the safety of employees and customers and ensure the survival of the businesses in the current crisis. Don’t lose sight of the future in the chaos of the present. The businesses that survive 2020 will be the leaders of the future.

Dr. Steve Isaacs has been with the University of Kentucky Cooperative Extension program for over 28 years, specializing in farm management programs such as farm financial management, human resource management, and the economics of injury prevention. He also teaches Ag Management Principles and Human Resource Management at UK. Dr. Isaacs has delivered over 800 Extension presentations/workshops, authored or collaborated on 250 print or electronic publications, has directed or co-direct over $6 million of externally funded programming. Dr. Isaacs is a trusted and valued resource for KCARD with his extensive knowledge in agricultural economics and business management. He has also been a mentor or instructor for many KCARD staff over the years.