Fit for Growth

Synopsis

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

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Summary

Chapter 1: The 4 Imperatives of Growth

* Imperative 1: Focus on customers: Understand their needs and deliver value that exceeds their expectations. Example: Apple's iPhone transformed the mobile phone industry by creating a sleek, user-friendly device that met customers' demand for a seamless mobile experience.
* Imperative 2: Create a culture of innovation: Encourage employees to challenge the status quo and develop new ideas. Example: Google's "20% time" policy allows employees to spend one day per week on personal projects, fostering innovation and creativity.
* Imperative 3: Optimize operations for efficiency: Continuously improve processes and systems to minimize waste and increase productivity. Example: Toyota's lean manufacturing principles have revolutionized manufacturing by eliminating unnecessary steps and reducing lead times.
* Imperative 4: Build a digitally transformed business: Leverage technology to enhance customer experiences, improve operations, and drive growth. Example: Amazon's e-commerce platform has disrupted traditional retail by offering a vast selection, personalized recommendations, and convenient delivery options.

Chapter 2: The Growth Mindset

* Growth companies have a mindset that:
* Embraces change and challenges
* Sets ambitious goals
* Learns from mistakes and adapts
* Focuses on long-term success
* Example: Netflix's growth mindset led them to pivot from DVD rentals to streaming, capturing the market for on-demand entertainment and revolutionizing the industry.

Chapter 3: The Customer-Centric Approach

* Customer-centric companies:
* Put customers at the heart of all decisions
* Collect and analyze customer data
* Personalize interactions and experiences
* Prioritize customer satisfaction
* Example: Starbucks' "My Starbucks Rewards" program collects customer preferences, allows them to earn rewards, and provides personalized offers, fostering loyalty and repeat business.

Chapter 4: Creating a Culture of Innovation

* Foster innovation by:
* Encouraging experimentation
* Providing resources and support
* Celebrating successes and learning from failures
* Breaking down silos and promoting collaboration
* Example: Tesla Motors' culture of innovation has led to breakthroughs in electric vehicles, battery technology, and autonomous driving, disrupting the automotive industry.

Chapter 5: Optimizing Operations for Efficiency

* Optimize operations by:
* Streamlining processes
* Reducing waste
* Improving quality
* Measuring and tracking performance
* Example: Walmart's use of supply chain management systems has enabled them to reduce inventory levels, lower costs, and improve customer service, making them a global retail giant.

Chapter 6: Digitally Transforming Your Business

* Digital transformation involves:
* Leveraging technology to enhance customer experiences
* Improving operations and efficiency
* Exploring new business models
* Example: Uber's ride-hailing platform has transformed the transportation industry by connecting riders and drivers through a mobile app, disrupting traditional taxi services and creating a global network.