Because the authors discovered, “Firms that cut costs faster and deeper than rivals don’t necessarily flourish. They have the lowest probability—21%—of pulling ahead of the competition when times get better.”

Honeywell CEO Dave Cote additionally cautions against shortsightedness throughout financial downturns:

I’ve been a frontrunner throughout three recessions and I’ve by no means heard a administration crew discuss how the alternatives they make throughout a downturn will have an effect on efficiency throughout a restoration. There can be a restoration and we should be ready for it.