Overcoming crisis

An Introduction to the Principles of Growth as a Strategic Lever for Resilience

In times of economic recession, companies must adapt their growth strategies to successfully navigate through crises.

The origins of the word “crisis” can be traced back to ancient Greek krisis, meaning judgment and decision, and medieval Latin crisis, which refers to a sudden, violent manifestation of a disease. The term crisis, therefore, signifies a critical, decisive moment where everything is determined.

The Modern Entrepreneur Must Be Able to Thrive in an Era of Uncertainty

Global crises (economic, health, societal) pose significant challenges for business leaders. The ability to overcome the shock resulting from a crisis is a crucial skill for successful entrepreneurs.

An Opportunity Space Challenged by the Mindset of Business Leaders

A disconcerting event such as a crisis can have multiple implications for business growth strategies and performance. It may lead business leaders to make irrational decisions, such as losing valuable staff to competitors.

Preserving Business Value in a Crisis

During past crises, some companies have disappeared due to poor decision-making. It is estimated that during the 2007-2008 crisis period, the value of companies declined by more than 63% within two years. As a result, crises necessitate a thorough understanding of the changes in business strategies and models, including the growth strategies required to mitigate the impact of recurring crises.

The Need to Transform Growth Strategies

In times of economic recession, companies must alter their growth strategies to overcome the crisis. During such periods, the concept of growth strategies becomes increasingly significant, even though growth and recession are not inherently compatible. Consequently, choosing the appropriate strategy becomes a critical decision that affects a company’s long-term sustainability.

The contagion effect of crises impacts businesses during global economic downturns. Implementing solutions such as mergers and business combinations is not always straightforward, although they can be lifesaving measures.

“Men accept change only when it is necessary, and they see the need for change only when there is a crisis.”

Jean Monnet

Economic crises force leaders to consider change as a necessity. Managing change is a complex task, and part of the challenge lies in the lack of consensus on the factors that most drive transformation initiatives and how they influence business behavior.

The first principle of decision-making and trade-offs is to develop a clear and objective strategic understanding of the situation, the forces at play, and the scope and modalities of strategic actions.

Overcoming crisis