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Four-point plan to make companies crisis-proof

According to a new study by the consulting firm Bain, many German industrial companies are not properly prepared for an economic downturn: companies that have a strategy and see the crisis as an opportunity have a clear advantage.

23 Jun. 2019
Photo by VanveenJF on Unsplash

According to the study, a look at the last major economic downturn in 2008 and 2009 shows that companies that did a good job of managing the recession outperformed their competitors in the following years. Waiting too long is a big mistake, as this increases the risk of having to take extreme austerity measures, from which it is difficult to recover. Companies that controlled their costs and gradually implemented emergency plans fared better at the time. They were able to quickly switch back to upturn mode after the crisis. The consultants recommend a four-point plan to get safely through the next storm. It includes a strategic perspective, an economic early warning system, scalable packages of measures and implementation expertise.

The next crisis is sure to come – only the timing is still open. While the Handelsblatt newspaper recently reported on German industry’s shrinking production and exports, the FAZ newspaper sees at least a glimmer of hope thanks to the demand for German goods having recently increased again.