By Donald Sull and Charles Sull Leaders should build resilience, local agility, and portfolio agility to prepare for the next recession. Winter is coming: Inverted yield curves, rising interest rates, and a rash of layoff announcements have convinced many economists that the global economy is headed for a downturn. 1. Recessions are bad for business, but downturns are not destiny. 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 non-recessionary 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 earning by 17% per year during the downturn, while the laggards saw profits stagnate or decline. The difference between the companies in the two groups translated into $6 billion in enterprise value on average. READ FULL ARTICLE>>
