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.
We developed the Fit for Growth* framework based on research into hundreds of companies across various sectors. What we found: Those who best follow the Fit for Growth principles achieve higher total shareholder returns than those that do not. Their secret? They tightly link their growth and cost agendas to fuel growth.
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.
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.
Here’s what’s inside each section of the book:
“Building a company for growth requires efficiency, confidence and innovation. What I love about this book is how accurately it captures the business world in which we live. Based on their vast experience, the authors offer valuable perspective on how to ensure your organization’s competitive fitness for the future.”
“Growth-oriented companies have the foresight, courage and discipline to focus on what truly brings distinctive value to their customers, making tough tradeoffs to invest in and execute only those ideas with the greatest impact for their customers. Fit for Growth expertly and succinctly details how organizations need to work, think and act differently to align their growth agendas with their cost agendas and to ensure profitable and sustainable growth.”
“Fit for Growth is a comprehensive guide for any organization that is searching for accelerated growth, especially in a low-growth environment. With its practical examples, the book provides clarity on how efficiency, cost consciousness, and strategic clarity can be combined in a stimulating way.”
“Fit for Growth reminds us that strategic clarity and coherence set companies apart, but that choices on efficiency and focus are required to drive investments in strategy and maximize shareholder returns.”
“Fit for Growth provides excellent insights on how to strike the right balance of driving a growth agenda while staying cost competitive, including not only a conceptual framework but also hands-on, practical and highly relevant implementation guidance.”
“Having lived in the trenches with the authors, I came to know the full price of clutter and complexity. Fit for Growth is a blueprint for reigniting growth and unlocking value that has been tested in many of the deepest trenches — a real reminder that growth is about purpose, simplicity and discipline!”
“Fit for Growth provides excellent guidance to executives who want to drive profitable growth and align winning strategies with a sound cost structure and operating model. Tangible examples and practical techniques show how to provide the leadership required in a forward-thinking, cost-effective and operationally sound organization.”
The authors bring more than 70 years of combined strategy and business transformation consulting experience and the unrivaled industry and functional capabilities of the PwC network to solve companies’ toughest problems and help them capture their greatest opportunities.