Open in the App Open in the App Open in the App
Get the key ideas from

Fit for Growth

A Guide to Strategic Cost Cutting, Restructuring, and Renewal

By Vinay Couto, John Plansky and Deniz Caglar
12-minute read
Audio available
Fit for Growth: A Guide to Strategic Cost Cutting, Restructuring, and Renewal by Vinay Couto, John Plansky and Deniz Caglar

Fit for Growth (2017) explains why cost cutting is crucial to a company’s growth. The authors cover a range of how-tos, from restructuring your organizational model to cutting superfluous business departments and achieving sustainable growth for your company.

  • Managers looking to cut business costs
  • Anyone interested in change-management skills
  • Students wishing to pursue a career in management consulting

Vinay Couto, John Plansky and Deniz Caglar are all principles at the prestigious professional services firm PricewaterhouseCoopers. They have a combined 70 years of strategy-consulting experience with businesses across a wide range of industries.

© Vinay Couto, John Plansky and Deniz Caglar: Fit for Growth copyright 2017, John Wiley & Sons Inc. Used by permission of John Wiley & Sons Inc. and shall not be made available to any unauthorized third parties.

Go Premium and get the best of Blinkist

Upgrade to Premium now and get unlimited access to the Blinkist library. Read or listen to key insights from the world’s best nonfiction.

Upgrade to Premium

What is Blinkist?

The Blinkist app gives you the key ideas from a bestselling nonfiction book in just 15 minutes. Available in bitesize text and audio, the app makes it easier than ever to find time to read.

Discover
3,000+ top
nonfiction titles

Get unlimited access to the most important ideas in business, investing, marketing, psychology, politics, and more. Stay ahead of the curve with recommended reading lists curated by experts.

Join Blinkist to get the key ideas from

Fit for Growth

A Guide to Strategic Cost Cutting, Restructuring, and Renewal

By Vinay Couto, John Plansky and Deniz Caglar
  • Read in 12 minutes
  • Audio & text available
  • Contains 7 key ideas
Fit for Growth: A Guide to Strategic Cost Cutting, Restructuring, and Renewal by Vinay Couto, John Plansky and Deniz Caglar
Synopsis

Fit for Growth (2017) explains why cost cutting is crucial to a company’s growth. The authors cover a range of how-tos, from restructuring your organizational model to cutting superfluous business departments and achieving sustainable growth for your company.

Key idea 1 of 7

Successful companies devote financial resources to the areas where they already excel; everywhere else, they cut costs.

What’s stopping your company from growing? Perhaps it’s your customers’ rising expectations – or maybe you’re struggling with industry-wide economic problems? Fortunately, whatever your difficulties, the solution is the same – you need to cut your costs.

No matter what industry your company is in, you must focus as much on cutting costs as on growing revenue.

But where should you start cutting?

Actually, the more relevant question is, where shouldn’t you? In order to answer this, you first need to pinpoint your company’s differentiating capabilities – the processes, tools or knowledge that makes your company better than its competitors. In other words, what are the things your company does best?

Understanding what your differentiating capabilities are is crucial because these are the areas of your business that you don’t want to cut. And once you’ve identified them, you should start devoting the lion’s share of your financial resources to them.

In practice, this means cutting costs in all other areas of your company so that you can focus on your priorities. Sound like a risky strategy? Well, it’s less risky than attempting to pursue excellence in all your business functions.

Many companies believe that every department, from Human Resources to Logistics, needs to be “best in class.” They then allocate generous amounts of resources to each department accordingly. However, these spend-happy companies rarely ask themselves whether financing each department is actually conducive to overall success. Outshining the competition in every aspect isn’t really necessary, and trying to do so often forces companies to underinvest in the activities unique to their enterprise.

This is a mistake that the most successful companies avoid.

For example, Swedish home-furniture company IKEA focuses only on being the best at what it’s already the best at. IKEA knows that it’s beloved for its elegantly simple product design, inviting stores and low prices. Consequently, the company relentlessly searches for opportunities to save costs in all other areas – such as their supply chain and product packaging – as long as the cuts don’t affect product quality, in-store customer experience and low prices.

Key ideas in this title

No time to
read?

Pssst. Sign up to your secret to success: key ideas from top nonfiction in just 15 minutes.
Created with Sketch.