What is it?
After financial calamity, the recovery. But managing for recovery requires business leaders to get out from under the rock (or from behind the sofa) and start performing. For so long the talk has been about cost-cutting and retrenchment and just staying in business. So now new markets and new ventures should be on the agenda. But it takes courage and clarity of thought to change gear and remember what it was that made you go into business.
Where did it come from?
Seasoned bosses know that surviving tough times is crucial because every downturn leads sooner or later to recovery. In the 20th century, the despair of World War One was followed by flappers and the bright young things of the 1920s. Equally, America's long boom of the 1950s and 1960s showed that the opportunities thrown up by recovery need to be grabbed. Smart companies keep up their investment in bad times because they know they will be better placed when recovery finally comes.
Where is it going?
With the severe cutbacks in the public sector, space has been created for the private sector to operate in. So at least runs the 'crowding out' theory that nothing should now be in the way of businesses that want to invest. But, firstly, capital has to be available at a reasonable rate. And, secondly, business leaders have to be convinced that customer demand exists for the goods and services they have to offer. Until both these variables are in place, recovery will be more theoretical than real.
Gradient: Pretty steep