FEATURES
customers
The Age of Continuous Connection
Nicolaj Siggelkow and Christian Terwiesch | page 072
Thanks to technologies that enable constant, customized interactions, businesses are building deeper ties with their customers. Firms can now address customer needs the moment they arise—and sometimes even earlier. By employing connected strategies, companies are dramatically improving their customers’ experiences, boosting their own operational efficiencies, and gaining competitive advantage.
In their research the authors have identified four effective connected strategies: Respond to desire, which entails filling customers’ requests quickly and seamlessly; curated offering, or presenting personally tailored recommendations; coach behavior, or reminding people of needs and goals and nudging them to act; and automatic execution, or anticipating what people want and delivering it without even being asked.
To get the most out of these strategies, firms must understand customers’ privacy preferences, build new capabilities, and use the learning from repeated inter-actions to shape future ones.
HBR Reprint R1903C
FEATURES
sustainability
The Investor Revolution
Robert G. Eccles and Svetlana Klimenko page 096
Environmental, social, and governance (ESG) issues have traditionally been of secondary concern to investors. But in recent years, institutional investors and pension funds have grown too large to diversify away from systemic risks, forcing them to consider the environmental and social impact of their portfolios.
Analysis of interviews with 70 executives in 43 global institutional investing firms suggests that ESG is now a priority for these leaders and that corporations will soon be held accountable by shareholders for their ESG performance.
To respond to this shift in focus, companies must publish a statement of purpose, provide investors with integrated financial and ESG reports, increase the involvement of middle managers in ESG issues, invest in robust IT systems, and improve internal systems for measuring and reporting ESG and impact performance information.
HBR Reprint R1903G
FEATURES
economics & society
How to Survive a Recession and Thrive Afterward
Walter Frick | page 108
According to an analysis led by Ranjay Gulati, during the recessions of 1980, 1990, and 2000, 17% of the 4,700 public companies studied fared very badly: They went bankrupt, went private, or were acquired. But just as striking, 9% of the companies flourished, outperforming competitors by at least 10% in sales and profits growth.
A more recent analysis by Bain using data from the Great Recession reinforced that finding, showing that the top 10% of companies studied didn’t merely survive; their earnings climbed steadily throughout the downturn and continued to rise afterward.
Among the companies that stagnated in the aftermath of the Great Recession, few had made contingency plans, according to the Bain report. “When the downturn hit, they switched to survival mode, making deep cuts and reacting defensively.”
How should firms prepare for a recession, and what should they do when one hits? This research roundup examines advice in four areas: debt, decision making, workforce management, and digital transformation.
HBR Reprint R1903F