There's mounting evidence that many UK business leaders are responding to economic slowdown with widespread cutbacks. Wrong move. In this article, the authors argue that the opposite approach works best. They point out that from 1990 and 1992—tough recessionary years in the UK—over 10% of companies achieved total shareholder returns greater than 30%, far outstripping the market average of 9%. Managers at those growth companies kept their nerve and followed three disciplines: they acted swiftly to make necessary adjustments but avoided indiscrimate cost cutting; they strengthened the bonds of loyalty with employees, customers and other key partners; and they accelerated the search for growth opportunities.