The current economic expansion is long by historical standards, and thus the risk of recession rises with each passing month. Recessions catch many companies by surprise, with predictable results. In the 2001 recession, total sales for the S&P 500 declined by 9% from its pre-recession peak to its trough 18 months later—almost a year after the recession officially ended. But these periods also present opportunities for well-prepared companies to take advantage of the turmoil and gain share.
What Sales Teams Should Do to Prepare for the Next Recession
The question is when the next downturn will hit, not whether it will.
November 23, 2018
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Summary.
A next recession is inevitable; the question is when, not if. New research from Bain shows that companies that prepare in advance for a recession dramatically outperform those that don’t, both during and after the recessions. Sales organization in particular should be preparing now for the next recession, with a focus on acquiring new digital tools. These tools can help them pull ahead of competitors during a recession by helping them zero-based sales capacity; know when to walk away from deals; amplify low-cost sales channels; detect and reinforce effective behaviors; automation account management; and improve their pricing strategies.
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HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.