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Fit for Growth

Book Description

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

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Preface
  5. Part I: Introduction and Fit for Growth Overview
    1. Chapter 1: Do You Need to Cut to Grow?
      1. Circuit City: The Ostrich Approach
      2. IKEA: Elevating Cost Optimization to an Art Form
      3. The Fit for Growth Index
    2. Chapter 2: Becoming Fit for Growth: The Restructuring and Renewal Journey
      1. Focus on Differentiating Capabilities
      2. Align the Cost Structure
      3. Reorganize for Growth
      4. Enable Change and Cultural Evolution
      5. Continuous Cost-Fitness Renewal
    3. Chapter 3: The Leader's Role: Aligning Costs with Strategy
      1. How Do You Know When It's Time?
      2. The Three Core Questions Leaders Ask
      3. What Makes the Fit for Growth Approach Different
  6. Part II: How to Cut Costs and Grow Stronger: A Manager's Guide
    1. Chapter 4: Levers of Cost Reduction: What, Where, and How
      1. Setting the Objective
      2. Identifying Differentiating Capabilities
      3. Selecting the Cost-Reduction Levers
      4. “What” Do We Do? Business Portfolio and Capability Choices
      5. “Where” Do We Do It? Organization and Location
      6. “How” and “How Well” Do We Do It? Operational Excellence
    2. Chapter 5: Portfolio Rationalization: Decide What Business You Should Be In
      1. What Is Portfolio Rationalization?
      2. When to Use Portfolio Rationalization
      3. How to Rationalize the Portfolio
    3. Chapter 6: Zero-Basing: Justify What to Keep, Not What to Kill
      1. What Is Zero-Basing?
      2. A Versatile, Holistic Cost Lever
      3. When Should You Zero-Base Your Capabilities?
      4. How to Zero-Base Your Capabilities
    4. Chapter 7: Aligning the Operating Model: Redefine Where Critical Work Gets Done
      1. Operating Model Elements and Archetypes
      2. When to Redesign Your Operating Model
      3. How to Redesign Your Operating Model
    5. Chapter 8: Outsourcing: Let External Providers Generate Value for You
      1. What Is Outsourcing?
      2. When to Outsource
      3. The Outsourcing Process: How It Works
    6. Chapter 9: Footprint Optimization: Rethink Your Operations and Overhead Locations
      1. What Is Footprint Optimization?
      2. When to Use Footprint Optimization
      3. Footprint Optimization: How It Works
    7. Chapter 10: Process Excellence: Simplify Work and Minimize Bureaucracy
      1. What Is Process Excellence?
      2. When to Use Process Excellence
      3. A Guide to Process Excellence
      4. Aligning Process Excellence with Other Cost Levers
    8. Chapter 11: Spans and Layers: Flatten and Empower the Organization
      1. What Is a Spans and Layers Restructuring?
      2. When to Restructure Spans and Layers
      3. How to Restructure Spans and Layers: Five Steps to a Leaner Organization
    9. Chapter 12: Strategic Supply Management: Extract More Value from Your Purchases
      1. What Is Strategic Supply Management?
      2. When Should a Company Use Strategic Supply Management?
      3. Making It Happen: A Guide to Strategic Supply Management
    10. Chapter 13: Digitization: Make Technology a Game Changer
      1. What Is Digitization?
      2. When to Use Digitization
      3. How to Digitize
  7. Part III: Coping with Cost Restructuring: How to Manage and Sustain the Change
    1. Chapter 14: Running a Cost Transformation: Mobilizing, Scaling, and Sustaining
      1. Phase 1: Diagnostic and Case for Change
      2. Phase 2: Detailed Design
      3. Phase 3: Execution
    2. Chapter 15: Morale, Emotions, and Expectations: Leading during a Restructuring
      1. Uncertainty and Anxiety
      2. Phase 1: Opportunity, but for Whom?
      3. Phase 2: Anxiety Surfaces
      4. Phase 3: Turmoil, but also Glimmers of Something Better
    3. Chapter 16: The Human Element: Getting People Ready, Willing, and Able to Change
      1. Elements of a Culture-Led Change Management Program
      2. Phase 1: Diagnostic and Case for Change
      3. Phase 2: Detailed Design
      4. Phase 3: Execution
    4. Chapter 17: Staying Fit for Growth
      1. Strategic Levers: Translating Strategy into Performance
      2. Operational Levers: Executing Against the Plan
      3. Organizational Levers: Assign Accountability and Reward Cost Consciousness
      4. Cultural Levers: Unleashing the Individual
      5. Sense and Sustainability: Getting from Here to There
  8. Acknowledgments
  9. About the Authors
  10. Index
  11. End User License Agreement