Six courses of action to survive and thrive in a crisis

Abstract

PurposeMany organizations emerge from a crisis in a weak position because they focused too much on cost reductions. However, a review of past crises reveals that there are always organizations that seize the opportunities offered by crises. During difficult times these organizations tailor their strategy to their specific circumstances to achieve an optimum balance between what they have do and what they can do. These organizations do not automatically choose for a cost reduction strategy but consider a wide range of courses of action. As a result, they strengthen their position and, after recovery of the economy, they emerge as a frontrunner in their industry. This article reviews the possible courses of action during a recession, illustrated by companies that took these actions in practice, and explains how you can determine the course you need to take to help your organization to not only survive but thrive in a crisis.Design/methodology/approachOn the basis of a previous meta analysis into high performance which identified five factors characteristics of a HPO, and a review of the financial strength of an organization, six courses of action are identified and illustrated with practical examples.FindingsThe examples of the courses of action as taken by the organizations described in this article reveal that “one size does not fit all”: each organization needs to examine its position carefully to identify the status of its financial situation and internal organization.Research implications/limitationsOrganizations can use the matrix of courses of action to determine the most appropriate course for the coming time.Originality/valueThis is the first time that the courses of action that an organization can take have been underpinned by scientific research, and as such managers can be more confident that they will take the right course of action.