WEBVTT 1 00:00:00.300 --> 00:00:01.850 We've seen this movie before. 2 00:00:02.810 --> 00:00:06.100 During good times, we forget. 3 00:00:06.100 --> 00:00:08.080 We forget to keep investing 4 00:00:08.080 --> 00:00:10.720 in ameliorating the effects of bad times. 5 00:00:10.720 --> 00:00:14.050 But those bad times are not some sort of bizarre exception. 6 00:00:14.050 --> 00:00:16.220 They actually are the places 7 00:00:16.220 --> 00:00:18.811 where long-term performance is determined. 8 00:00:18.811 --> 00:00:21.228 (calm music) 9 00:00:29.411 --> 00:00:31.530 Could there be a worse time to think about growth 10 00:00:31.530 --> 00:00:33.110 than during a crisis? 11 00:00:33.110 --> 00:00:36.000 Well, actually the numbers tell a different story. 12 00:00:36.000 --> 00:00:37.950 Turns out that the very best time 13 00:00:37.950 --> 00:00:41.110 to leapfrog your competitors is actually during a crisis. 14 00:00:41.110 --> 00:00:42.570 So what do the resilient companies do? 15 00:00:42.570 --> 00:00:45.240 They employ a number of distinct principles, 16 00:00:45.240 --> 00:00:47.650 one of which is adaptiveness. 17 00:00:47.650 --> 00:00:48.990 In other words, they don't try harder 18 00:00:48.990 --> 00:00:50.690 to do the things they used to do, 19 00:00:50.690 --> 00:00:53.920 they actually change and adapt to new conditions. 20 00:00:53.920 --> 00:00:57.090 So crises are really not exceptional periods 21 00:00:57.090 --> 00:00:58.970 where the normal rules don't apply. 22 00:00:58.970 --> 00:01:01.250 And a good example of that is Alibaba. 23 00:01:01.250 --> 00:01:03.741 Alibaba was originally a B2B company 24 00:01:03.741 --> 00:01:07.170 and it became a B2C e-commerce company 25 00:01:07.170 --> 00:01:08.860 during the SARS crisis. 26 00:01:08.860 --> 00:01:12.270 Alibaba explicitly has an operating system 27 00:01:12.270 --> 00:01:14.580 which is predicated on everything being responsive 28 00:01:14.580 --> 00:01:16.350 to changing conditions. 29 00:01:16.350 --> 00:01:18.190 And we can see that, first of all, in the results. 30 00:01:18.190 --> 00:01:19.630 The difference between high-performing 31 00:01:19.630 --> 00:01:22.080 and low-performing companies in the same industry 32 00:01:22.080 --> 00:01:23.900 in the recovery phase of a crisis 33 00:01:23.900 --> 00:01:26.929 had difference increases by about 50 to 100%. 34 00:01:26.929 --> 00:01:29.512 (upbeat music)