Innovation For Hard Times
Source: The McGraw-Hill Companies
Everyone is familiar with financial leverage. It is a powerful way to improve performance when times are good. The danger, of course, is that financial leverage magnifies the impact of downturns in demand as well. It can literally kill a company, as we are witnessing in the financial-services industry. But there are other forms of leverage. And executives should be searching for them in order to navigate the current crisis and allow firms to continue to create economic value, rather than becoming a victim of the destruction.