Courageous leaders excel while others play it safe

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By Carl Dierschow July 15, 2011

Despite what the statistics say, most companies in Northern Colorado are still experiencing the effects of the recession. Some are experiencing an upturn, but many are not.

In times of economic hardship, there are typically three directions that companies take:

• They don't manage to survive. They get bought out, dissolve, or are acquired, but don't emerge from the downturn as an independent entity.
• They hunker down. Focused on survival, they conserve every resource, avoid every possible risk, and ultimately emerge as a weaker version of their former selves.
• They reinvent themselves. Some leaders recognize that an economic downturn usually represents an opportunity to lead in a restructured industry, and make carefully considered investments to leapfrog the competition.

Most companies that survive are in the second category: They emerge from a downturn weaker. Those few that are able to look to the future will create a leadership position for themselves, if only because the competition is weaker.

Let's look at an example close to home: publishers of newspapers and magazines.

It's no secret this industry has been hit hard. Readers have less disposable income; so do advertisers. But those who are watching the