HBR Guide to Executing Your Strategy

CHAPTER 23

How to Adapt Your Strategy When Crisis Hits

by Michael Wade, Amit Joshi, and Elizabeth A. Teracino

In early 2020, Airbnb was headed for a banner year—bookings were up, expansion plans were in place, and an IPO was set for the spring. Then Covid-19 hit, and more than $1 billion of bookings disappeared, expansion plans were postponed, and one-quarter of the workforce was cut. However, by the end of the year, revenues had recovered, and the company completed one of the most successful tech IPOs in history.¹

Ultimately Airbnb and other companies that successfully navigated the crisis were able to deviate from their strategic plan and adapt to the changing environment. Our research identified three distinct ways they did this:

1. They were ...