Dealing with disruption

Resilient organizations bounce back better—and even thrive—during times of disruption. McKinsey’s research has shown that companies evaluated as more resilient generated greater shareholder value than less resilient peers across the entire life cycle of the major economic shocks of the past two decades, including the world financial crisis of 2007–09 and the COVID-19 pandemic.

Resilient companies did better at the outset of the downturn and after.

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Two side by side line graphs, one wider and covering more years, and one narrower and covering fewer years.

The first line graph shows total shareholder return performance beginning in the 2008 financial crisis. The data is represented as an index with 100 being equal to 2007 average shareholder return. The downturn and recovery from the crash are marked, and three data sets are shown as different colored lines on the graph: one line for resilient companies, one for nonresilients, and between them the S&P 500 stock market average as a benchmark. Resilient companies far outperform the nonresilients and also outperform the S&P 500.

The second line graph shows total shareholder return performance beginning at the most recent market crash during the COVID-19 pandemic. The data is represented as an index with 100 being equal to 2019 average shareholder return. Three data sets are shown as different colored lines on the graph: one line for resilient companies, one for nonresilients, and between them the S&P 500 stock market average as a benchmark. Again, resilient companies far outperform the nonresilients and also outperform the S&P 500.

End of image description.

To read the article, see “Resilience for sustainable, inclusive growth,” June 7, 2022.