CEOs were already juggling cost challenges before the COVID-19 outbreak. Then the world’s 20 largest economies went on lockdown within an eight-week window. Optimism for a quick recovery has evaporated and one big question looms: How do we prepare for a future that will be forever changed, but is still not fully known?
The actions you take now to protect your business are critical for its future success. But what are those actions? Our Fit for Growth approach offers a clear path to emerging stronger from the COVID-19 crisis by helping you re-assess strategic priorities across the value chain to thrive in the new normal.
While most companies will work to protect the bottom line, cost-cutting will not be enough. The global pandemic has upset past beliefs and models about costs. Companies need to cut in a way that doesn't harm growth or chances of survival. With so much change, it’s crucial to reinvent and rebuild for strength and agility.
Strategic priorities, organizational resets, and new ways of operating are all on the table as companies balance cost-cutting with reinvestments for growth. Here are three actions that can help cut the right costs in the right ways and help your business emerge fighting fit from this crisis:
Focusing on the core capabilities that differentiate your company in the market is a smart way to redirect costs to the right growth drivers.
Try to find a combination of “no-regrets moves” (low-risk decisions) and “strategic bets” that are high-reward in the scenario you’re betting on.
In the wake of COVID-19, all companies face changing market dynamics and new ways of doing business.
The Fit for Growth approach provides a powerful and complete way to be ready for the new normal and emerge stronger, orchestrating company transformations along five key dimensions.
“81% of CFOs are currently planning cost-containment measures.”
The Fit for Growth approach leverages a suite of digital assets, deployed virtually, to enable rapid analysis and actionable insights. It generates first results within six weeks while shaping the future path to emerge stronger.