In general, I am a forward looking person and striving to excite people about the future. Even these times are full of positive experiences and opportunities. And sometimes, it is great to explore the past - historians play an important role in our daily life. This article is looking at studies from previous crises and shares interesting conclusions - What you can learn from history about innovating during a crisis.
The companies that invested in innovation during the crisis displayed 14% more growth in the following decade than the companies that did not. What did these companies do differently? They collaborated with other businesses, explored new market opportunities, leveraged technology in new ways, and were competing on value instead of price.
At the same time, in a crisis companies need to be cautious with spending. The research shows that investing into innovation is not the only driver for success. Companies need to find a balance between investing in innovation and reducing your cost structure. Though, firing staff is not the preferred way to control your costs - this will only backfire in the near future.
Here are cost management strategies that have been proven successful in previous crises:
While these defensive measure are in place, follow your customers and invest where you can create value. Allow your staff to experiment with new ways to interact with customers and learn as much as they can. It is very important to build a solid foundation that pushes you into the pole position when the economy is picking up again.
Where do you find inspiration in this list of measures? How will you start to balance innovation and cost control?
Tim is a change practitioner in the area of innovation and excellence. He is working with teams to accelerate innovation, collaboration and agility.