A few months back, BusinessWeek introduced the S&P/BusinessWeek Global Innovation Index made up of the companies in their The World’s Most Innovative Companies list. According to Bruce Nussbaum, over the last twelve months the Global Innovation Index outperformed both the S&P 500 Index and the S&P Global 100 Index.
This is hugely significant. AS A.G. Lafley [CEO of P&G] says in his book, Game-Change, innovation drives revenue and profit growth. And in a recession, Lafley told me that it is innovation that allows P&G to maintain value and bolsters prices.
There’s dark lining in this silver cloud, however. As this recession continues, I predict that many companies will ignore this message and will instead opt to hunt for economies of scale and to pull the traditional levers of cost-cutting and job-cutting. Understandable, maybe, but short-sighted…
For my readers, remember that a recession is a great time to start a business. Look around and do something innovative that serves a customer need. Constraints are your friend.
- Bandit
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