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The broken link –
Why cost reduction
efforts fail to fuel growth
The rules of competitiveness are
changing. Businesses must fire
on all cylinders to keep pace with
the unprecedented deman...
3Copyright © 2016 Accenture. All rights reserved.
Accenture Strategy research revealed...
1. Businesses give purpose to co...
4Copyright © 2016 Accenture. All rights reserved.
Accenture Strategy research revealed...
2. Companies are focused on rein...
5Copyright © 2016 Accenture. All rights reserved.
Accenture Strategy research revealed...
3. Investing in Digital is one a...
6Copyright © 2016 Accenture. All rights reserved.
1. Organize for growth
2. Manage the journey
3. Digitize to fuel sustain...
7Copyright © 2016 Accenture. All rights reserved.
About Accenture
Accenture is a leading global professional
services comp...
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The Broken Link –Why Cost Reduction Efforts Fail to Fuel Growth

www.accenture.com/fuel-growth
The rules of competitiveness are changing. Businesses must fire on all cylinders to keep pace with the unprecedented demands for speed, scale and agility. To drive profitable growth, companies must identify activities that drive value, take out non-value adding costs and reinvest savings into growth. Accenture Strategy research revealed that businesses have made cost reduction and growth a priority—but the critical link between cost reduction and growth strategy is broken.

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The Broken Link –Why Cost Reduction Efforts Fail to Fuel Growth

  1. 1. The broken link – Why cost reduction efforts fail to fuel growth
  2. 2. The rules of competitiveness are changing. Businesses must fire on all cylinders to keep pace with the unprecedented demands for speed, scale and agility. To drive profitable growth, companies must identify activities that drive value, take out non-value adding costs and reinvest savings into growth. Accenture Strategy research revealed that businesses have made cost reduction and growth a priority—but the critical link between cost reduction and growth strategy is broken. Copyright © 2016 Accenture. All rights reserved.Copyright © 2016 Accenture. All rights reserved. 2
  3. 3. 3Copyright © 2016 Accenture. All rights reserved. Accenture Strategy research revealed... 1. Businesses give purpose to cost reduction activities, aiming to increase profitability, but struggle with sustainable execution due to inflexible operating models. 82% agree that their business is reinvesting cost savings into growth initiatives. Only 36% strongly agree their business sustains the benefit of cost reduction programs. Only 24% of companies have a flexible operating model that can adapt to consistently deliver on strategy. Copyright © 2016 Accenture. All rights reserved. 3
  4. 4. 4Copyright © 2016 Accenture. All rights reserved. Accenture Strategy research revealed... 2. Companies are focused on reinvesting savings to fuel growth, but leadership misalignment and competing priorities impede progress. 54% of companies are challenged identifying the right areas to reinvest cost savings. Only 1 out of 3 C-suite executives and 1 out of 4 VPs believes that the reinvestment priorities are in line with the business strategy. C-suite VPs Copyright © 2016 Accenture. All rights reserved. 4
  5. 5. 5Copyright © 2016 Accenture. All rights reserved. Accenture Strategy research revealed... 3. Investing in Digital is one area where executives clearly align to drive growth and advanced operating models. 54% agree that their organization is reinvesting cost savings into digital technologies. 84% agree that technology is an enabler of strategic cost reduction. Copyright © 2016 Accenture. All rights reserved. 5
  6. 6. 6Copyright © 2016 Accenture. All rights reserved. 1. Organize for growth 2. Manage the journey 3. Digitize to fuel sustainable growth Copyright © 2016 Accenture. All rights reserved. 6 Three Actions to Fuel Profitable Growth
  7. 7. 7Copyright © 2016 Accenture. All rights reserved. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. Join the conversation: @AccentureStrat To learn more, download the full report: www.accenture.com/fuel-growth Copyright © 2016 Accenture. All rights reserved. 7 About Accenture Strategy Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy.

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