Downturn cowboys

An economic slowdown, more so a recession, really tests the mettle of a company, the tenacity of its leaders and the confidence of every executive. Surprisingly, a majority of the leaders and executives seem to panic at the first sign of slowdown. In the name of cost rationalization, they even sell off parts of businesses and let good people go.

Why does this happen when evidence and research by credible agencies have shown that leaders and managers who use the slump to position their companies for superior performance emerge as winners ?

Mehrdad Baghai, Sven Smit and Patrick Viguerie in their article in McKinsey Quarterly (August 2008) titled ‘M&A strategies in a down market’

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