With baby boomers entering their last stages, Private Equity invested in senior residences ahead of the certain increase in demand as an aging population would surely seek community, comfort, support, and safety from communal living. COVID-19 changed the calculus overnight. WeWork and Airbnb represent two more niches that are forever changed…as are many more.
You smell smoke. Then come flames! You run into the front yard and turn to look at your home with fear and dread. Now imagine your local, rookie fireman appears on the scene to fight your fire having only ever trained online with no real field-simulation experience!
Firemen train by fighting real fires in a controlled environment to learn how to use the equipment and how to make repairs on the fly when gear malfunctions, such as when a hydrant fails to turn-on as expected. Only experience with a real fire teaches the teamwork needed to work fast and handle unexpected problems.
Many organizations have written a crisis management plan and secured approvals all the way up to the C-Suite, but have never tested the plan in real circumstances to know how it works. Plans that have not been “pressure-tested” in a realistic, simulated situation risk that the team will not work well together and face higher odds of financial and reputational damage, or worse, when the inevitable crisis hits.