Fit for Growth - A Guide to Strategic Cost Cutting, Restructuring, and Renewal

A practical approach to business transformation
 
Fit for Growth¯* is a unique approach to business transformation that explicitly connects growth strategy with cost management and organization restructuring. Drawing on 70-plus years of strategy consulting experience and in-depth research, the experts at PwC's Strategy& lay out a winning framework that helps CEOs and senior executives transform their organizations for sustainable, profitable growth. This approach gives structure to strategy while promoting lasting change. Examples from Strategy's hundreds of clients illustrate successful transformation on the ground, and illuminate how senior and middle managers are able to take ownership and even thrive during difficult periods of transition. Throughout the Fit for Growth process, the focus is on maintaining consistent high-value performance while enabling fundamental change.
 
Strategy& has helped major clients around the globe achieve significant and sustained results with its research-backed approach to restructuring and cost reduction. This book provides practical guidance for leveraging that expertise to make the choices that allow companies to:
* Achieve growth while reducing costs
* Manage transformation and transition productively
* Create lasting competitive advantage
* Deliver reliable, high-value performance
 
Sustainable success is founded on efficiency and high performance. Companies are always looking to do more with less, but their efforts often work against them in the long run. Total business transformation requires total buy-in, and it entails a series of decisions that must not be made lightly. The Fit for Growth approach provides a clear strategy and practical framework for growth-oriented change, with expert guidance on getting it right. *Fit for Growth is a registered service mark of PwC Strategy& Inc. in the United States

List of contents

Preface ix
 
PART I Introduction and Fit for Growth Overview 1
 
Chapter 1 Do You Need to Cut to Grow? 3
 
Circuit City: The Ostrich Approach 6
 
IKEA: Elevating Cost Optimization to an Art Form 9
 
The Fit for Growth Index 12
 
Chapter 2 Becoming Fit for Growth: The Restructuring and Renewal Journey 17
 
Focus on Differentiating Capabilities 19
 
Align the Cost Structure 21
 
Reorganize for Growth 24
 
Enable Change and Cultural Evolution 28
 
Continuous Cost-Fitness Renewal 29
 
Chapter 3 The Leader's Role: Aligning Costs with Strategy 31
 
How Do You Know When It's Time? 32
 
The Three Core Questions Leaders Ask 34
 
What Makes the Fit for Growth Approach Different 43
 
PART II How to Cut Costs and Grow Stronger: A Manager's Guide 45
 
Chapter 4 Levers of Cost Reduction: What, Where, and How 47
 
Setting the Objective 48
 
Identifying Differentiating Capabilities 50
 
Selecting the Cost-Reduction Levers 52
 
"What" Do We Do? Business Portfolio and Capability Choices 52
 
"Where" Do We Do It? Organization and Location 53
 
"How" and "How Well" Do We Do It? Operational Excellence 55
 
Chapter 5 Portfolio Rationalization: Decide What Business You Should Be In 57
 
What Is Portfolio Rationalization? 58
 
When to Use Portfolio Rationalization 62
 
How to Rationalize the Portfolio 64
 
Chapter 6 Zero-Basing: Justify What to Keep, Not What to Kill 70
 
What Is Zero-Basing? 70
 
A Versatile, Holistic Cost Lever 73
 
When Should You Zero-Base Your Capabilities? 76
 
How to Zero-Base Your Capabilities 76
 
Chapter 7 Aligning the Operating Model: Redefine Where Critical Work Gets Done 85
 
Operating Model Elements and Archetypes 86
 
When to Redesign Your Operating Model 92
 
How to Redesign Your Operating Model 93
 
Chapter 8 Outsourcing: Let External Providers Generate Value for You 103
 
What Is Outsourcing? 103
 
When to Outsource 107
 
The Outsourcing Process: How It Works 108
 
Chapter 9 Footprint Optimization: Rethink Your Operations and Overhead Locations 119
 
What Is Footprint Optimization? 119
 
When to Use Footprint Optimization 123
 
Footprint Optimization: How It Works 126
 
Chapter 10 Process Excellence: Simplify Work and Minimize Bureaucracy 133
 
What Is Process Excellence? 134
 
When to Use Process Excellence 139
 
A Guide to Process Excellence 140
 
Aligning Process Excellence with Other Cost Levers 146
 
Chapter 11 Spans and Layers: Flatten and Empower the Organization 149
 
What Is a Spans and Layers Restructuring? 149
 
When to Restructure Spans and Layers 154
 
How to Restructure Spans and Layers: Five Steps to a Leaner Organization 155
 
Chapter 12 Strategic Supply Management: Extract More Value from Your Purchases 163
 
What Is Strategic Supply Management? 163
 
When Should a Company Use Strategic Supply Management? 167
 
Making It Happen: A Guide to Strategic Supply Management 169
 
Chapter 13 Digitization: Make Technology a Game Changer 177
 
What Is Digitization? 177
 
When to Use Digitization 179
 
How to Digitize 182
 
PART III Coping with Cost Restructuring: How to Manage and Sustain the Change 189
 
Chapter 14 Running a Cost Transformation: Mobilizing, Scaling, and Sustaining 191
 
Phase 1: Diagnostic and Case for Change 193
 
Phase 2: Detailed Design 198
 
Phase 3: Execution 203
 

About the author

VINAY COUTO is a principal with PwC US.
JOHN PLANSKY is an executive at State Street.
DENIZ CAGLAR is a principal with PwC US.
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. Strategy& is PwC's strategy consulting business.

Summary

A practical approach to business transformation Fit for Growth* is a unique approach to business transformation that explicitly connects growth strategy with cost management and organization restructuring.

Product details

• Authors: Deniz Caglar, Caglar Deniz, Vina Couto, Vinay Couto, Cuoto, Vinay Cuoto, Vinay Plansky Cuoto, Et al, Joh Plansky, John Plansky, Plansky John, Wiley
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 02.03.2017
• EAN: 9781119268536
• ISBN: 978-1-119-26853-6
• No. of pages: 288
• Dimensions: 158 mm x 235 mm x 24 mm
• Subjects: Education and learning > Teaching preparation > Vocational needs; Social sciences, law, business > Business > Management; Management, Restrukturierung, Business & management, Wirtschaft u. Management, Spezialthemen Wirtschaft u. Management, Business & Management Special Topics