-: We've seen this movie before.
During good times, we forget.
We forget to keep investing
in ameliorating the effects of bad times.
But those bad times are not some sort of bizarre exception.
They actually are the places
where long-term performance is determined.
(calm music)
Could there be a worse time to think about growth
than during a crisis?
Well, actually the numbers tell a different story.
Turns out that the very best time
to leapfrog your competitors is actually during a crisis.
So what do the resilient companies do?
They employ a number of distinct principles,
one of which is adaptiveness.
In other words, they don't try harder
to do the things they used to do,
they actually change and adapt to new conditions.
So crises are really not exceptional periods
where the normal rules don't apply.
And a good example of that is Alibaba.
Alibaba was originally a B2B company
and it became a B2C e-commerce company
during the SARS crisis.
Alibaba explicitly has an operating system
which is predicated on everything being responsive
to changing conditions.
And we can see that, first of all, in the results.
The difference between high-performing
and low-performing companies in the same industry
in the recovery phase of a crisis
had difference increases by about 50 to 100%.
(upbeat music)