... The need to respond to the residual effects of the crisis (and the other trends) is forcing many companies to hit the reset button. With renewed discipline, senior leaders are examining their product and service portfolios, business and operating models, process fitness, and cost structure — all through a lens focused more closely on what truly creates value for their companies and their customers. They are figuring out where their companies can excel, based on their distinct capabilities: the things they do better than anyone else. They are using those capabilities to go after opportunities in areas where they know they can win, and scaling back the products and services in areas where they can’t. The best of them have invested, even during their leanest times, to bolster those capabilities that can be capitalized for renewal and growth.
The companies that succeed will also work vigilantly to identify and mitigate the risks — to their supply chains, sources of capital or credit, currency strategies, reputations, regulatory compliance, and so on — that could potentially derail their path forward. And they will proceed with a new, hard-earned understanding that their fortunes — and those of their employees, customers, investors, and other stakeholders — are irrevocably linked with those in other industries and around the globe.