Preparing Your Company for the Next Recession
Leaders should build resilience, local agility, and portfolio agility to prepare for the next recession.
The worst of times for the economy as a whole can be the best of times for individual companies to improve their fortunes. One study found that lagging companies are twice as likely to overtake industry leaders during a recession, relative to nonrecessionary periods.2 Another study, of nearly 4,000 global companies before, during, and after the Great Recession, found that the top decile of companies grew earnings by 17% per year during the downturn, while the laggards saw profits stagnate or decline.3 The difference between the companies in the two groups translated into $6 billion in enterprise value on average.
