The economic news in the US is not encouraging. Although unemployment remains low, inflation persists, interest rates continue to rise, and stocks are down significantly.

Given this context, many companies are thinking about managing costs, and a few are considering reducing spending on leadership development.

But is that the right approach?

After the 2007 recession, a group of researchers from Kellogg and Harvard Business school studied the strategy and corporate performance of 4,700 public companies during the prior three recessions and found that the companies that flourished after a slowdown took a balanced approach. They cut costs selectively, mostly by focusing on operational efficiency, and they also invested comprehensively in the future.

Further research shows that companies can increase their resilience and performance by:

• Recognizing the role that leaders play in helping their company and employees navigate turbulent times.
• Investing in supporting and developing the leaders who are most likely to navigate the economic storm and help their company emerge healthier and stronger.
• Continuing to invest in DEI strategies that will strengthen the workforce and leadership of the future.
• Supporting leaders whose actions influence the level of engagement and retention of key employees.
• Continuing to invest in executive coaching to help leaders increase their effectiveness—so they can support the business today and position the company for recovery.

Let us know if you’d like to talk about how we can help.

The Boda team