The pandemic shows that we're capable of rapid change, but also that we need to be better prepared. GETTY

Now That We Know We Can Change, Harvard Economist Says, We’d Better

The coronavirus pandemic shows that companies and the economy can respond quickly and globally to natural threats, said a leading expert on organizational change, but also that we need to better prepare for climate change.

Companies that don’t prepare for climate change, said Harvard economist Rebecca Henderson, will regret it.

“I’ve been spending the last 15 years of my life trying to persuade firms to respond to the challenge of climate change and trying to persuade them that if they don't respond, they'll really regret it, and there's money to be made,” Henderson said in a podcast hosted by fellow Harvard economist Robert Stavins.

Henderson has specialized in analyzing the management failure of established organizations to adapt to change, beginning in the 1980s with American carmakers failing to adopt efficiencies pioneered by their Japanese competitors.