'Government' is certainly the buzzword of the week. Obama stood up last night and tried to repair his image in the eyes of many doubters, and to reassert his goals for his presidency. If/when attained, his visions will ultimately expand the government's role in business and everyday life.
BCG's recent publication, then, should come as no surprise. The book, Accelerating Out of the Great Recession: How to Win in a Slow-Growth Economy, by senior partners David Rhodes and Daniel Stelter, came out in tandem with this week's annual World Economic Forum in Davos. The authors urge business leaders to build stronger links with politicians and state officials who are asserting their influence in the corporate world. And this isn't just a casual suggestion—they insist that corporate recovery depends on it.
"In a world in which long-term fiscal and monetary stimulus policies become the norm, businesses will have to become even closer to government -- either through lobbying or by anticipating where the government plans to spend money," the authors say. "This is not good for the long-term health of business or the economy. But business has little choice."
In their research of over 400 companies, Rhodes and Stelter found that the majority of business executives expect increased government intervention to slow growth in the global economy. To combat this, it's up to business leaders to cement the relationships with government to encourage policy solutions that stimulate sustainable economic growth.
Of course, closer government relationships are only one way to rise up out of the recession. The authors also address other tactics, including innovation, mergers and acquisitions, and strategy shifts to acclimate to the new realities of the business climate. Click here to hear more about what they have to say.
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