Companies can create value in two ways: they can grow or improve productivity. Period.
2016 will place obstacles in the road to the growth of Latin American companies that finally have convinced themselves that the low commodity prices caused by the Asian slowdown aren't pure blather, and that they will probably be the new normal. They will go back up again, of course, for basic Malthusian reasons, but for now no one is inclined to have much hope that this moment has arrived.
As the cover story of this magazine clearly shows, there are companies that have found ways to grow, even in these turbulent times. Maybe that's what everyone should explore. Take the example of Mexican companies that have set up shop in Europe, in China or in India.
Some companies have chosen another route: cutting some of their costs. They reduced their payroll and achieved savings of five, or at best, ten percent. Fine, but limited.
Then again, as Lino Abram, senior partner of McKinsey in Peru suggests, this is the perfect time to come up with a different strategy: improving productivity. But the problem, as even he admits, is that to improve productivity companies have to invest. This could go against common...