Call for Leaders – 3Q is a new category where Business Review features our 3 questions with some of Romania’s top business professionals, bringing a positive, insightful, or otherwise constructive view of their markets in the context of the current crisis.
Current conversation: Andrei Cionca, CEO IMPETUM GROUP
What are the measures you took for your business during this period?
We ran a stress test for each of the three companies from Impetum Group: CITR, ROCA Investments and ROCA X, to have a realistic forecast of the future, with a particular focus on cash flows and revenues. We are a step ahead to understand the impact in our incomes, in order to be able to decide cost adjustments, so that our people’s wages do not suffer any reduction. We stay connected to the social and economic changes, we monitor daily reality as resilience is a key feature these days. We communicate intensely, both internally and externally, we are not afraid of oversharing since isolation amplifies the need to belong to a team and a community.
What’s your advice for business leaders regarding this crisis?
I think advises are not relevant at the moment. In my opinion it is much more constructive to split the crisis into three different stages: freeze, analyze and adapt.
We are in the first stage which is not suitable for decision making. The effects seen so far in the business ecosystem are minimal and concern especially the industries in which the government stepped in and stopped the activity to mitigate the sanitary crisis (i.e. hotels, restaurants, cafes, transport, retail). We’re still absorbing the shock of recent changes in our lives. For now, it is important that we stay close to one another and communicate with each other so that we understand today’s reality. Once the health crisis is overcome, it is time for critical thinking and decision making, at which point we can also start talking about the economic crisis and its effects. The cycle will end with the adjustment stage: a good time to understand the changes and new financial models, have a vision for the future and adapt. I also hope that in the future, as a consequence of these difficult times, we will be stronger both as individuals and as communities.
What’s the most positive business news you’ve read today and want to share?
The Dow Jones Industrial Average, one of the most popular stock exchange indexes in the world, jumped more than 13% three days ago, despite worsening coronavirus cases. Stocks surged as Wall Street cheered White House plans to inject $1 trillion into the U.S. economy to cushion the coronavirus blow. The spectacular growth of the Dow Jones Industrial Average, the largest since 2008, gives me confidence that this first package of measures adopted by the USA against the crisis will be successful. It is also a positive sign proving that governments worldwide understand they need to get involved to mitigate the economic shock of this health crisis.