increasing agility to fuel growth and …...increasing agility to fuel growth and competitiveness in...
TRANSCRIPT
Increasing agility to fuel growth and competitiveness in the UK
Execution is difficult Too many areas of reinvestment
Only 18%have optimized their process for identifying and removing business activities and investments that do not add value
Only 36% of companies prioritize reinvestment of cost savings in alignment with business strategy
Inflexible operating models
Only 10% of companies have a flexible operating model that can adapt to consistently deliver on strategy and execute activities that drive value for the organization
Only 13% of companies are positioned to optimize and deliver the growth objectives they recognize are critical
53% cite enhancing customer/consumer experience as the most common area for reinvesting savings
Organize for growth Know where growth is coming from and define your long-term growth strategy. Identify specific goals and focus areas to guide the specific execution plan. Determine needed capabilities and establish performance metrics, incentives and performance management tools.
Digitize to fuel sustainable growthPursue digital business models and strategies to increase organizational agility and sustainable growth. Commit to building digital capabilities and digitizing traditional processes to achieve unprecedented speed, scale and savings.
Manage the journey Align leaders on the specific plans to achieve cost management and growth objectives, and prepare to resolve pockets of resistance. Use change management to gain buy in, evolve the company culture to be cost-conscious and ensure that cost savings will be sustained. Institute proper governance to guide future initiatives.
C-level executives and vice presidents are not totally aligned on cost management, growth priorities and actions for reinvestment.
88% say digital business is an enabler of strategic growth
85% believe digital strategies are an enabler of advances operating models
What’s getting in the way? Difficulty executing cost reduction programs, inflexible operating models, difficulty prioritizing growth investments and lack of leadership alignment prevent companies from achieving desired profitable growth.
In the UK, businesses are even more focused on cost reduction to free up funds to invest in growth than globally.
Key findings – United Kingdom
Definitely digitalExecutives may disagree on where to invest for growth, yet they do agree on one thing: digital investments are a priority to accelerate growth and enable speed, agility and scale.
Leaders perspectives
CEO
38%
CFO VPs
43% 42%
Accenture research confirms UK businesses are looking for new ways to increase agility and fund profitable growth. Their cost reduction strategies are helping free up resources to reinvest in growth, but executives face barriers to sustainable execution.
1 2 3
82% 93%
© 2016 Accenture All rights reserved.
For more information, contact our managing director:
Join the conversation:@AccentureConslt
Believe reinvestment priorities are aligned to business strategy
CEO CFO VPs
75% 71% 17%
Likely to use formal reviews of investment success to assess the return on reinvested cost savings
Three actions to fuel profitable growthExecuting cost reduction strategies to increase agility and fuel growth is challenging. Three steps can help companies be more competitive.
To learn more, download the full report:www.accenture.com/agilitytocompete