Is The Recession Preparing Us For The Future?

Trends Magazine – June 11, 2009

How the Recession Is Preparing Us for the Future

More than 2,000 years ago, the Stoic philosophers observed that an enlightened person always finds a way to turn misfortune into opportunity.  That is no less true today.  The fact is, even while the headlines are screaming about a financial crisis, the economies of the United States and the world are laying the foundations for the creation of vast new wealth.  Strong companies with enlightened leadership, as well as individual professionals and investors, will be able to deploy strategies that ensure they make the best use of their resources now, and then participate in the boom times when they come. 

As recently highlighted in the McKinsey Quarterly, timing is of the utmost importance in making the most of crises.  There are some once-in-a-lifetime opportunities out there, and one looming question is when to seize them.  Moving too soon could mean incurring further losses, while waiting could mean missing the opportunities altogether.  This is especially true of companies considering an acquisition or a merger. 

The short answer seems to be that moving sooner rather than later is more likely to optimize value than waiting for a positively defined bottom.  It