WEBVTT

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<v ->We've seen this movie before.</v>

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During good times, we forget.

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We forget to keep investing

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in ameliorating the effects of bad times.

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But those bad times are not some sort of bizarre exception.

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They actually are the places

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where long-term performance is determined.

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(calm music)

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Could there be a worse time to think about growth

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than during a crisis?

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Well, actually the numbers tell a different story.

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Turns out that the very best time

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to leapfrog your competitors is actually during a crisis.

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So what do the resilient companies do?

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They employ a number of distinct principles,

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one of which is adaptiveness.

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In other words, they don't try harder

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to do the things they used to do,

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they actually change and adapt to new conditions.

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So crises are really not exceptional periods

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where the normal rules don't apply.

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And a good example of that is Alibaba.

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Alibaba was originally a B2B company

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and it became a B2C e-commerce company

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during the SARS crisis.

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Alibaba explicitly has an operating system

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which is predicated on everything being responsive

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to changing conditions.

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And we can see that, first of all, in the results.

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The difference between high-performing

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and low-performing companies in the same industry

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in the recovery phase of a crisis

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had difference increases by about 50 to 100%.

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(upbeat music)