The big idea
Very few organizations manage their costs for sustainable success. They spend their money on the wrong things or they cut the wrong things for the wrong reasons, ultimately leaving them weaker and unfit to compete. Instead, organizations need to think about their costs strategically, as investments that will fuel their growth, so they put their money where their strategy is. They need to continuously cut bad costs and redirect resources towards good costs that build or strengthen differentiating capabilities.
PwC developed the Fit for Growth* framework based on research into hundreds of companies across various sectors.
What they found:
Those who best follow the Fit for Growth principles achieve higher total shareholder returns than those that do not.
They tightly link their growth and cost agendas to fuel growth.
Whether you’re trying to jumpstart flattening revenues or racing imminent bankruptcy, companies are realizing that the only way to unleash profitable growth is to cut costs, often dramatically.
In the globally interconnected, digitally disintermediated market full of activist investors in which enterprises operate today, there is no safe harbor when it comes to the bottom line.
Companies need to focus on managing costs as rigorously as they concentrate on increasing revenues.
As with any living organism, there is no profitable growth without equally robust pruning.
We’ve devoted 70 years of collective experience to helping dozens of companies answer affirmatively: Are you Fit for Growth?
Companies that are “fit for growth” do three things consistently and continuously:
Focus on a few differentiating capabilities
Align their cost structure to these capabilities
Organize for growth
About the book
Fit for Growth companies enjoy higher shareholder returns and sustained growth.
Why? Because they put their money where their strategy is. Through constructive cutting, Fit for Growth companies connect their costs with their strategy so they can invest resources in what truly differentiates them from the competition. They cut costs at the right time, from the right spots, in the right way to stay lean, fit, and ready to pursue growth.
Fit for Growth lays out the framework managing costs in a strategic way using detailed, real-world examples so that leaders across all industries can get their companies into shape — the right way.
Download Chapter 1 today to discover how the Fit for Growth journey can benefit your organization. Here’s what’s inside each section of the book: