Source page: McKinsey & Company
Commentary
Winning at the margins
Strategy | Resilience | Economy
January 16, 2023 – Davos—the World Economic Forum’s annual meeting—is in full swing through January 20. All this week, our daily charts will focus on some of the key themes of the event, including resilience, sustainability, reimagining globalization, inclusion, and space. For more, see “McKinsey and the World Economic Forum 2023.”
A look at how leading US companies handled the global financial crisis of 2007–11 could provide valuable lessons for leaders confronting today’s uncertainties. One such lesson: focus on margins. According to findings by managing partner, North America, Asutosh Padhi and colleagues, improving margins early during the Great Recession produced bigger gains in performance than early-cycle revenue growth did.
To read the article, see “Planning for 2023: How US-based businesses can succeed when capital and talent are constrained,” December 16, 2022.
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Visual form
Two-axis strategy comparison chart.
Layout / body structure
The chart is organized to compare performance outcomes for companies that focused on margin improvement versus those that leaned first on revenue growth during the downturn. The reading order is comparative: first identify the strategic paths, then compare the outcomes attached to each one.
What is being compared
It compares margin-focused companies and growth-focused companies during the global financial crisis period and then links those choices to later performance gains.
Measurement system
The chart tracks corporate performance outcomes relative to the strategic emphasis, so the important readings are comparative gains rather than a single operating metric in isolation. Category labels separate the strategic choices, and the bars, points, or quadrants show which path performed better.
Visible structure inside the graphic
The internal structure is built from clearly separated strategy groups and their associated outcome markers. The chart is arranged so the margin-improvement path and the revenue-growth path can be compared directly rather than read as independent stories.
Main takeaway from the visual
The page is designed to show that protecting and improving margins early in a downturn created stronger performance than chasing top-line growth alone. The visual turns that lesson into a direct side-by-side comparison rather than a narrative claim.
Key standout values or extremes
The strongest visual contrast is not one single number but the superior outcome attached to the margin-focused group. The chart positions margin improvement as the higher-performing path in the aftermath of the 2007 – 11 crisis.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.