(LIVE) Economic Downturn How to Win the Next Economic Downturn

Identify and invest in new growth engines, supporting a balanced portfolio of bets across multiple timescales.

The Stakes Are Exceedingly High

Build Resilience

14%

Organizations can thrive only if they have sustainable relationships with the social, political, and environmental systems they participate in.

Only 14% of companies, on average, were able to boost both their growth and margin during the past four downturns.

In the next downturn, one route to greater strength will be through increased agility.

Average revenue growth

Companies that move quickly and focus on the future will rebound faster and emerge stronger than before.

Increasing sales growth

Act early

Learn how to find advantage in adversity

When the next downturn hits, how can your business become one of the few that emerges stronger?

Accelerate large-scale change

0.3%

Average total shareholder return outperformance

+14pp

Winners Outperformed the Competition in Revenue Growth and EBIT Margin

Become flexible

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To Take Advantage of the Next Downturn, Master Three Steps

2.9pp

-0.9%

0.3%

Read insights from BCG’s 10th annual Investor Survey

What will it take to win the ’20s?

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…

A leadership agenda for the next decade

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.

For more details, follow our #HowtobyBCG conversation on LinkedIn and Twitter.

Winners Outperformed the Competition in Revenue Growth and EBIT Margin

Discover what it will take to cultivate corporate vitality

Increase vitality

Maintain viability

-4.7%

A leadership agenda for the next decade

Explore the 5 Pillars

But this elite group commanded sizable advantages…

What will it take to win the ’20s?

Push ambitious transformation programs and ensure the long-term viability of the business.

Perform

Decreasing sales growth

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.

4.2%

Discover what it will take to cultivate corporate vitality

Change in EBIT margin

Short-term orientation

Expanding EBIT margin

Shrinking EBIT margin

The ultimate goal is to increase the organizations ability to explore new ideas, renew its strategy, and achieve sustainable long-term growth.

Read insights from BCG’s 10th annual Investor Survey

See How Agile Ways of Working Provide Key Benefits in a Downturn

Maintain Viability

See How Agile Ways of Working Provide Key Benefits in a Downturn

Deliver economic and social value

2007–2009 Downturn

Companies with a Long-Term Perspective Performed Better

Resilient companies react to unanticipated opportunities or threats, weather shocks to the business, and adapt accordingly.

Learn how to find advantage in adversity

“

The next downturn is on the horizon. Businesses need to get ready now.

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.

44%

Increase Vitality

Focus on long-term growth

Adopt a long-term, competitive perspective

-4.4pp

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1.4%

The Stakes Are Exceedingly High

#HowtobyBCG

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.

#HowtobyBCG

Read insights from BCG’s 10th annual Investor Survey

Build resilience

Revenue growth (CAGR)

74%

Explore the 5 Pillars

Focus on what BCG calls “total societal impact,” and leverage your core business to address pressing social and environmental needs.

Thrive

It’s not enough to just survive the downturn: you also need to be prepared to survive what comes next.

-0.9%

Survive

8.8%

Long-term orientation

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.

How to Win the Next Economic Downturn

+7pp

How to Win the Next Economic Downturn

1.4%

4.2%

Explore the 5 Pillars

Plan for next downturn— not the last one