HBR’s 10 Must Reads on Managing in a Downturn: A book review by Bob Morris

HBR’s 10 Must Reads on Managing in a Downturn
HBR Editors and Various Contributors
Harvard Business Review Press (September 2019)

How the most resilient companies survive — and even thrive — during hard times

This is one in a series of volumes that anthologize what the editors of the Harvard Business Review consider to be “must reads” in a given business subject area, in this instance managing during a downturn. Each of the selections is eminently deserving of inclusion.

If all of the eleven articles were purchased separately as reprints, the total cost would be almost $100 and the practical value of any one of them far exceeds that. Given the fact that Amazon US now sells this volume for only $19.62 , that’s quite a bargain.

The same is true of volumes in other series such as HBR Guide to…, Harvard Business Review on…, and Harvard Business Essentials. I also think there is great benefit derived from the convenience of having a variety of perspectives and insights gathered in a single volume.

In all of the volumes in the HBR 10 Must Read series that I have read thus far, the authors and their HBR editors make skillful use of several reader-friendly devices that include “Idea in Brief” and “Idea in Action” sections, checklists with and without bullet points, boxed mini-commentaries (some of which are “guest” contributions from other sources), and graphic charts and diagrams that consolidate especially valuable information. These and other devices facilitate, indeed accelerate frequent review later of key material.

As indicated, there are eleven articles in the book, including one “bonus” classic: “Reigniting Growth” by Chris Zook and James Allen. Those who read HBR’s 10 Must Reads on Managing in a Downturn will be cutting-edge thinking for “preparing for a tough economy and coming back stronger.”

More specifically, they will learn the dos and don’ts with regard to how to

o Anticipate the development of a downturn
o Get their company ready before it strikes strikes
o Learn and apply the lessons from previous recessions
o Minimize pain while cutting costs and managing risks
o Foster a healthy organizational culture during high-pressure times
o Make smart moves to protect their own job
o Seize the opportunity to innovate and reinvent their enterprise

In or near the downtown area of most major cities, there is a farmer’s market at which merchants offer slices of fresh fruit as samples of their wares. In that same spirit, I now offer a few brief excerpts from the superb material in this book to suggest the thrust and flavor of the narrative.

* * *

Inaction is the riskiest response to the uncertainties of an economic crisis. But rash or scattershot action can be nearly as damaging. Rising anxiety (hows much worse are things likely to get? how long is this going to last?) and the growing pressure to do do something often produces a variety of uncoordinated moves that target the wrong problem or overlook the right one. [My own experience with downturns is that decision-makers often respond to symptoms rather than identify their root causes.] A disorganized response can also generate a sense of panic in the organization. And that will distract people from seeing something critically important: the hidden but significant opportunities nestled among the bad economic news.

From “Seize Advantage in a Downturn,” David Rhodes and Daniel Stelter

* * *

How should a company prepare in advance of a recession and what moves should it make when one hits? Research and case studies examining the Great Recession [i.e. December 2007 – June 2009] shed light on those questions. In some cases, they cement conventional wisdom; in others, they challenge it. Some of the most interesting findings deal in four areas: debt, decision making, workforce management, and digital transformation. The underlying message across all areas is that recessions are a high-pressure exercise in change management, and to navigate one successfully one needs be flexible and ready to adjust.

From “How to Survive a Recession and Thrive Afterward,” Walter Frick

* * *

Under ongoing stress, executives’ capacity for resilience is critical to maintaining their mental and physical health.  Paradoxically, however, building resilience is best done precisely when times are most difficult — when we face the most upending challenges, when we are at the greatest risk of misfiring with our reactions, when we are blindest to the opportunities presented. All the more reason, then, to use the resiliency regimen to tamp down unproductive responses to adversity, replace negativity with creativity and resourcefulness, and get things done despite real or perceived obstacles.

From “How to Bounce Back from Adversity,” Joshua D. Margolis and Paul G. Stolz

* * *

One of the biggest questions organizations face as they grapple with a constantly shifting economic landscape is whether their current workforce can help them make the transitions necessary to their success. While companies tend to prioritize short-term financial results over the long-term well-being of their employees, employees are the lifeblood that enables a company to keep delivering the products and services that ultimately generate shareholder benefits.

From “Layoffs That Don’t Break Your Company,” Sandra J. Sucher and Shalene Gupta

* * *

Many forces are beyond your control in a recession, but if you direct your energy toward developing a strategy, you’ll have a better chance of riding out the storm. You have to be extremely competent to make it through, but your attitude, your willingness to help the boss get the job done, and your contribution as a corporate citizen have a big impact on whether or not you are asked to stick around. The economy will bounce back; your job is to make sure you do, too.

From “How to Protect Your Job During a Recession,” Janet Banks and Diane Coutou

* * *

Obviously, no brief commentary such as mine can do full justice to the scope and depth of valuable information, insights, and counsel provided in this volume. I fully agree with the HBR Editors: “If you read nothing else on preparing for a tough economy and coming back stronger, read these definitive articles from the Harvard Business Review.”

I presume to add two points of my own. First, there are no employee engagement, performance management, or talent retention issues. Rather, ultimately, there are only business issues. Also, it is very important to think in terms of enterprise architecture as your organization’s primary strategy when reinventing how to accelerate personal growth and professional development.

 

 

 

 

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