In a downturn, most managers fixate on the abundant bad news: demand is down, prices are falling, credit is scarce, and lay-offs are likely. Obsessing over threats obscures a surprising but crucial truth about downturns: the worst of times for the economy as a whole can be the best of times for individual firms to create value for the long term.

In past downturns, some companies, including Toyota, Nokia, Cisco, Samsung and Emirates, emerged from an economic crisis stronger than before. Like the mythological Libyan wrestler Antaeus who regained strength when thrown to the ground, these companies derived strength from economic hard times. Many of their competitors, in contrast, languished or failed. Part of the difference is down to having managers who understand how to create value during a downturn, as well as their effectiveness in acting on these insights.