How Bad Economic Times Can Lead To Better Business Strategy

hard times

Photo: National Library of Scotland via Flickr

The economic crisis caught a lot of companies off guard, forcing CEOs to make tough, unconventional decisions.But a number of them are now finding the ideas born out of desperate times are serving their business well during the recovery.

The Wall Street Journal profiled several companies that reported they were going to continue or expand practices put in place during the financial downturn.

“We have a much better business model as a result of the recession,” said Mark Dixon, CEO of Regus PLC, which outsources office space and introduced a new more flexible pricing scheme during the crisis.

Bayer North America chief Greg Babe took tough action, freezing pay and cutting back on manufacturing capacity. But he expanded the companies R&D efforts and pushed his team to find opportunities in clean tech and alternative energy. The result has been double digit sales growth for the unit as green opportunities blossomed.

The moral is an important one for business: early pain can lead to later gain, especially if the economic turmoil forces your company to cut waste and think outside the box.

Read the entire post at the WSJ >

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.