Plan for next downturn— not the last one
Increase Vitality
Adopt a long-term, competitive perspective
Companies with a Long-Term Perspective Performed Better
Deliver economic and social value
44%
See How Agile Ways of Working Provide Key Benefits in a Downturn
It’s not enough to just survive the downturn: you also need to be prepared to survive what comes next.
The Stakes Are Exceedingly High
01
Focus on what BCG calls “total societal impact,” and leverage your core business to address pressing social and environmental needs.
“
Winning the downturn is just one challenge businesses face. Moving past viability to build resilience and vitality will position companies to be ready for whatever comes next.
Companies that move quickly and focus on the future will rebound faster and emerge stronger than before.
Build resilience
Maintain Viability
1.4%
-4.4pp
02
+7pp
Thrive
Long-term orientation
read more
8.8%
Explore the 5 Pillars
#HowtobyBCG
The Stakes Are Exceedingly High
Learn how to find advantage in adversity
74
1.4%
How to Win the Next Economic Downturn
Focus on long-term growth
“
Revenue growth (CAGR)
Continuously examine a wide range of possible future scenarios. Maintain financial reserves to keep your options open. Champion diversity and inclusion to boost innovation.
Develop best-in-class organizational change capabilities and embrace “always-on” transformation.
,
/
Explore the 5 Pillars
read more
4.2%
Resilient companies react to unanticipated opportunities or threats, weather shocks to the business, and adapt accordingly.
How to Win the Next Economic Downturn
But this elite group commanded sizable advantages…
2007–2009 Downturn
Expanding
EBIT margin
Read insights from BCG’s 10th annual Investor Survey
-0.9%
Read insights from BCG’s 10th annual Investor Survey
read more
74%
#HowtobyBCG
Survive
See How Agile Ways of Working Provide Key Benefits in a Downturn
The next downturn is on the horizon. Businesses need to get ready now.
2.9pp
Perform
The ultimate goal is to increase the organizations ability to explore new ideas, renew its strategy, and achieve sustainable long-term growth.
A leadership agenda for the next decade
Short-term orientation
01
What will it take to win the ’20s?
Change in
EBIT margin
Discover what it will take to cultivate corporate vitality
Average revenue growth
Accelerate large-scale change
14%
Learn how to find advantage in adversity
The 2008 downturn was primarily a financial crisis. Many companies simply cut costs to ride out the hard times.
In the next downturn, however, the main challenge will be identifying disruptive threats and finding new sources of growth.
Average total shareholder return outperformance
Don't wait for the market to turn. Create an action plan with downturn-ready processes today.
Streamline core operations and leverage digital technology to gain efficiency rather than relying on budget cuts.
Winners Outperformed the Competition in Revenue Growth and EBIT Margin
Organizations can thrive only if they have sustainable relationships with the social, political, and environmental systems they participate in.
Shrinking EBIT margin
For more details, follow our #HowtobyBCG conversation on LinkedIn and Twitter.
02
Maintain viability
Push ambitious transformation programs and ensure the long-term viability of the business.
Decreasing sales growth
Read insights from BCG’s 10th annual Investor Survey
Increasing sales growth
4.2%
Discover what it will take to cultivate corporate vitality
0.3%
Only 14% of companies, on average, were able to boost both their growth and margin during the past four downturns.
To Take Advantage of the Next Downturn, Master Three Steps
Increase vitality
Explore the 5 Pillars
Companies that move quickly and focus on the future will rebound faster and emerge stronger than before.
of investors expect a recession in the next 24 months.
Winners Outperformed the Competition in Revenue Growth and EBIT Margin
Identify and invest in new growth engines, supporting a balanced portfolio of bets across multiple timescales.
In the next downturn, one route to greater strength will be through increased agility.
Build Resilience
-4.7%
-0.9%
Only 14% of companies, on average, were able to boost both their growth and margin during the past four downturns.
But this elite group commanded sizable advantages…
When the next downturn hits, how can your business become one of the few that emerges stronger?
Act early
For more details, follow our #HowtobyBCG conversation on LinkedIn and Twitter.
Become flexible
%
0.3%
A leadership agenda for the next decade
+14pp
What will it take to win the ’20s?
