From the McKinsey Classics Newsletter (February 2011):
What Companies Get Wrong In Recessions
Every business wants additional earnings. It can find them in two ways: improving its current operations or developing new capabilities that could enhance its long-term corporate performance. Top managers traditionally bore down on operations in recessions and mounted transformational initiatives only in good times. Many still do.
But as a 2003 McKinsey Quarterly article noted, “extreme operating pressures force line managers to make do with existing capabilities despite the need to adapt businesses to a relentlessly changing marketplace” — an adaptation that usually calls for basic, long-term change. That point is even more relevant today.
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