How to rebound when your sector takes a hit: Part one

Crises can change our perception of uncertainty and volatility, and in the case of COVID-19 our research here at IMD has shown that it drastically changed our view of risks. Executives now take the possibility of things like supply chain disruptions far more seriously than they previously did. When you perceive risks and disruptions as real and likely threats, it shapes our strategy and how we prepare for the future.

We should never forget that the essence of strategy is about asking the right questions.

Hence, we need to structure our decision-making process in a way that we minimize potentially bad outcomes when a crisis manifests itself. There are four key steps to strategize through a crisis:

1. Prepare ahead for hard times.
2. Und…