During crises such as the ongoing coronavirus pandemic, it is imperative for business leaders to evaluate the impact on their business model and brand. To assist in this process, we have developed a comprehensive framework over the past decade to help executives identify risks and opportunities during a crisis.

The initial step is to examine four core dimensions of your business model and brand: customers, value propositions, value demonstrations, and capabilities. After analysing the interconnections between these dimensions, you can set realistic objectives for your organisation, both during and after the crisis. It may be necessary to have varying objectives based on different crisis scenarios, such as focusing on rapid recovery or preparing for an extended lockdown.

Customer DemandEvaluate how the crisis impacts customer demand. Will there be an overall increase or decrease? Are spending patterns shifting? Are new customer groups emerging? Additionally, consider any safety concerns that may arise due to the virus.

Value PropositionAssess how the coronavirus affects your value proposition. For instance, in the higher education sector, students still seek education, but if campuses remain closed for an extended period, institutions must reconsider how they can provide value as online entities and differentiate from competitors.

Value DemonstrationAnalyse how the crisis impacts your sales and marketing channels. With restrictions on face-to-face interactions and travel, traditional value demonstrations like customer meetings and trade shows are not feasible. Investigate new ways to demonstrate value, such as using video conferencing and online sales materials.

CapabilitiesExamine how the crisis strains your capabilities and determine which need prioritising. Some capabilities may require less focus, while others, like IT support for video conferencing, may become critical. Pay attention to the impact on supply chain and production capabilities and consider the implications of remote working for employees.

Once each dimension is assessed, it is vital to align potential changes in one dimension with the others. Identify which customer segments value your offerings and ascertain if those preferences will shift due to the crisis. Consider transitions from one value demonstration channel to another and explore how shortages in certain capabilities can prompt local production or shift focus from demonstration to value proposition.

A crisis not only challenges various aspects of a business model but also presents opportunities to adjust and realign these aspects. By thoroughly assessing and responding to these changes, businesses can successfully navigate uncertain times.