The real challenge for CEOs and Boards is – aligning or repositioning the organization on the critical (often competing) behaviors and activities that are required to meet the performance requirements of the current business, while reinventing (sometime dramatically) to be successful in the future.
For the best companies, a downturn is not just a time to hatchet down and survive – it’s an opportunity to set themselves up to thrive in the subsequent upturn. They position themselves to thrive when the opportunity comes. They start finding and seizing opportunities in tough times. Leaders know that growth cycles are always longer than recessionary cycles. Moments like these should be used by leaders to pause, reflect, learn and reposition where required.
The first thing is to stabilize the business. Protect it from downside risks and ensure there is adequate liquidity to weather the crisis. Then, and only then can one capitalize on the downturn in the longer term.