Clarkston analyzed S&P 500 companies during the ’07- ‘09 recession to understand which companies were able to outperform the market, what they did, and how and why they were able to do so.
Experts found that any company can rise to become a market leader in a time of crisis. Of the less than 6% of organizations who managed to grow both total enterprise value and stock price during the recession, 70% were categorized under the CPG & retail and life sciences sectors (figure 2).
Figure 2: Almost 70% of the 22 companies identified as winners during the 2007-2009 recession came from the CPG/Retail and Life Sciences sectors.
The patterns Clarkston found in what made companies successful during uncertain times were for Life Sciences organizations, a combination of well-timed M&A activity, robust product launch pipelines, and the right mix of commercial capabilities enabled winners to get their therapies to patients and grow faster than their peers.
In the Retail and CPG sector, brands that delivered on functional elements of the shopping experience (e.g., convenience, functional performance, and the right value equation) and connected with the customer on a deep emotional level were more successful than their peers.
Five Factors to Improve the Odds for Success of Growth and Optimization in Uncertain Times
#1: For Growth and Optimization - Invest for the future.
Balance daily operational needs with investments for the future. Do not restrict investments. 55% of the companies that outpaced the market during the recession grew their capital expenditures year-over-year at the height of the recession, while only 22% of their peers did the same (figure 2). Figure 3: 55% of the winning companies in our analysis grew their capital expenditures at the height of the recession, compared to only 22% of the laggards.
Clarkston's experience working with consumer products and life science companies suggests that organizations fail to achieve ambitious transformations when they get caught in an “execution trap” when execution is not sufficiently balanced by strategy. They have found that execution may outweigh strategy when time is not set aside for planning and optimization; when a healthy bias for action is not supported by facts and analysis; and when knowledge is overly concentrated in a few individuals.
The SAP Activate Methodology
Our sister company, Clarkston Consulting is taking the lead in running with this approach by rolling out pre-configured “SAP Accelerator” solutions for Life Sciences, Consumer Products, and Wholesale Distribution industries.
These accelerator solutions delivered by Clarkston Consulting include pre-configured solutions, custom developments, system documentation and training materials that will change system delivery from the historic approach of “Gather Requirements-Build-Test-Test-Test-Go Live” to a model of “Gap Analysis-Solution Adjustment-Test-Go-Live”. They deliver proven solutions for these industries in a shorter time frame with less risk. Thus, helping clients unlock the value of their business faster and cheaper than ever before.
As ERP solutions have evolved, it is wise to evolve the implementation approach along with them. 
