Article: Recession and reinvention: two sides of the same coin? Written by Ian Wylie Wednesday 07 December 2022 Share Share to LinkedIn Share to Facebook Share via email There are many examples of organisations that reinvented themselves as a result of recession and economic downturn – and many examples of those that didn’t. Expert management consultants examine why recession and reinvention coexist Recessions, depressions and downturns are best known for business closures and financial struggles. They are also famous for creating visionary entrepreneurs and innovative start-ups. American Airlines, Domino’s, HBO, Mailchimp, AirBnB, Uber… just some of the successful companies birthed during recessions, which can also be fertile times for invention. And here’s some more good news: they can also be good times for reinvention. Some companies that try to defend the status quo during downturns don’t live to tell the tale (bye-bye Blockbuster, Woolworths, Comet, Toys R Us and Phones4U). The Financial Times recently ran the headline, “Why Visa and Mastercard have yet to face their Kodak moment”. No doubt unsettling for many executives in the two financial giants. But then think how Kellogg’s thrived during the Great Depression by investing more in advertising, and in its people. Or how Amazon survived the dotcom bust by launching Marketplace and branching into web services. Lego is a favourite example for Zarina Naqvi CMC ChMC FIC. In 2008, as the US market was tanking, Lego shut its play parks, and instead looked to Europe, Asia and other new markets for growth and profits. “It pivoted successfully and acted on the way the world is now,” says Zarina, founder and director of Maxima Associates Consulting. “It also considered the future and built brands for girls – which has worked, after some trial and error – and moved into even more unusual markets such as film. It’s a tale of keeping pace with trends, buyers’ needs and responding to market forces and opportunity.” LEGO’s Play for All accelerator: nurturing neurodiverse talent through play – member-exclusive Targeting the underbanked: how Mastercard made diversity a key business objective – member-exclusive Want to learn more about recession as an opportunity for reinvention? Login or register below for Free Instant Access Login If you are already registered as a CMI Friend, Subscriber or Member, just login to view this article. Confirm your registration Login below to confirm your details and access this article. Sign in with email Email remember me remember Forget? Please confirm that you want to switch off the "Sign in with email" remember me feature. Yes No Register for Free Access Not yet a Member, Subscriber or Friend? Register as a CMI Friend for free, and get access to this and many other exclusive resources, as well as weekly updates straight to your inbox. You have successfully registered As a CMI Friend, you now have access to whole range of CMI Friendship benefits. Please login to the left to confirm your registration and access the article. Article Our extensive range of articles are designed to keep you in the loop with all the latest management and leadership best practice, research and news. Members See More CMI Members have access to thousands of online learning and CPD resources. Learn more about our membership benefits Join The Community CMI offers a variety of flexible membership solutions, tailored to your needs. Find out more and get involved in the CMI community today.