Boston Consulting Group (BCG)’s Post

Corporate leaders are facing mounting pressure to reduce costs. Boston Consulting Group (BCG)’s proven framework can deliver cost reduction that improves operations and is sustainable over time. Organizations must not only streamline expenses but also create lasting transformations that drive growth and resilience. BCG’s integrated approach to cost management achieves just that—rapidly identifying underlying issues and implementing customized initiatives.

An EY survey found that 95% of CEOs worldwide plan to continue or speed up their company transformations in 2024, with a nearly threefold increase in those accelerating their plans since July 2023. Learn more about where CEOs are leaning in! https://lnkd.in/gKesmVBH

In 2024, executives are placing a strong emphasis on managing costs while confidence in the market holds steady. While many organizations succeed in cutting costs, the real test comes in keeping those reductions in place over time. BCG’s latest #ExecutivePerspectives focuses on strategies that executives can implement to make #costmanagement efforts sustainable in the long run. Learn from the experiences of 600+ executives on how to steer through the economic challenges and achieve growth. https://on.bcg.com/4bxGHqO

Companies naturally launch cost-cutting initiatives at turbulent times. But many efforts to reduce expenses are ineffective and unsustainable, failing to achieve real impact. In fact, only 25% of transformations deliver the sustained performance targets expected by the board. In this BCG article, we look further into three typical barriers of full potential, sustained cost transformations.

In times of economic uncertainty, corporates often resort to cost-cutting, considering it a controllable factor amidst instability. This article argues for a broader perspective. Each expense should be seen as an investment in the business, shaping its future. Many companies approach cost-cutting reactively, often sacrificing crucial investments. A PwC survey in 2022 indicated a surge in cost-cutting efforts. Hasty implementations lead to weakened, imbalanced organizations lacking direction. The article highlights a study of 201 companies, revealing that 76 achieved higher revenue growth and profit margins in the following three years. The key lies in strategic resource allocation. The article outlines five steps for successful cost transformation: connecting costs to outcomes, radical simplification, digitizing value chains, reevaluating core business, and establishing a sustainable cost-focused management system. Initiating change requires top leadership alignment, early wins, and envisioning the process as a two-year journey. It stresses creating a dedicated infrastructure for change, involving middle managers and frontline employees, cultivating a culture supportive of transformation, and implementing mechanisms for ongoing cost focus. By doing so, companies can not only manage costs effectively but also pave the way for a prosperous future. https://lnkd.in/dnGSGX_Z #CostManagement #Budgeting #Efficiency #Automation #BusinessStrategy #Investments #ZeroBasedBudgeting #FutureofBusiness #ProductivityBoost

Interesting findings from the latest PwC Pulse Survey: Executives know they need to change, believe they have internal alignment on what changes they need to make, but not how to get there. As always, execution will be crucial for a successful transformation

Even though transformation programs tout breakthrough results, the reality is that most never come to fruition. In this Harvard Business Review article, my Bain colleagues Michael Mankins and Patrick Litre explain why so many ambitious change initiatives come up short and outline the steps that leading companies are taking to defy the odds and realize the full promise of transformation. https://lnkd.in/eC8vVmN4 #TransformationsThatWork

One of the invaluable lessons I acquired through the McKinsey Forward Program is the process of formulating recommendations following thorough analysis. It emphasizes considering recommendations as a means to mobilize and pragmatically implement strategies, with a focus on aligning and mobilizing the organization. This aspect is crucial as it constitutes half of the battle. Even if one possesses the most elegant solution or recommendation, without organizational buy-in or conviction, the intended impact may not be fully realized. #McKinseyForward

In the wake of economic uncertainties and the imperative of sustainable growth, Boston Consulting Group's latest publication, 'What Leaders Are Saying About Costs and Growth in 2024,' provides insights from over 600 global C-suite executives. This report highlights the shift towards a holistic approach in balancing cost efficiencies with growth initiatives. An essential read for those seeking to understand the evolving business landscape. #BCGInsights #CostManagement #GrowthStrategy #BeyondIsWhereWeBegin Read more: https://lnkd.in/evYEE8A4

Boston Consulting Group (BCG) CEOS NEED AN AGENDA FOR VALUE AND THE COMMON GOOD We frame the journey to new corporate value and the #commongood around six imperatives. It begins with reimagining corporate strategy, then involves transforming the business model, reframing performance and scorekeeping, leading a purpose-filled organization, practicing corporate statesmanship, and elevating governance. (See Exhibit 1.) While challenging to execute, we argue that this agenda will be essential to create a great company, a great stock, a great impact, and a great legacy. https://lnkd.in/dZengTFa Rick Fernandez, IMS Lead Auditor, SSMBB, PE, CPM Alvaro Reynoso Dr. Thomas H. Agrait,I.E.- Lean Enterprise Consulting