Research from a recent HBR article, How to Survive a Recession and Thrive – June/July 2019, identifies strategies deployed by companies that emerged and thrived – and others that hunkered down to survive a downturn.
Findings from companies that stagnated after a recession:
– Few made contingency plans or thought through alternative scenarios.
– Many switched to survival mode, making deep cuts and reacting defensively.
– Those that limped through a recession were slower to recover and never caught up.
The underlying message is that recessions are a high-pressure experience in leadership, change, engagement, and decision making. To navigate one successfully, a company needs to be flexible and ready to adjust.
Here is a structure that I’ve helped companies with in times of expansion and in times of contraction. Changing the mindset and outcomes from “hunkering down to moving ahead” begins with a fact base to help everyone move beyond emotions of the moment to strategies / actions for a prosperous future.
Let’s talk about applying this framework to your company to take advantage of this time of disruption to innovate for the future.