Whereas most corporations tightened their belts, profitable leaders, buying and selling decrease short-term profitability for long-term acquire, refocused relatively than reduce spending [. . .] But in expansionary intervals, profitable leaders spent considerably much less on [selling, general, and administrative costs] than did their former friends.

Better self-discipline throughout growth occasions supplied extra flexibility throughout lean years. And getting it proper through the lean years, Bain reports, has an enormous impression on corporations’ progress fee after issues enhance:

The authors of the Bain examine use an auto-racing analogy: