Traditional cost cutting measures are no longer enough; Cost transformation must be interconnected with growth, sustainability and innovation...
More than three-quarters of companies (76%) cut costs to survive during the pandemic; now 90% of C-suite executives say they must take a whole new approach to costs in order to transform their businesses to respond to ongoing disruption while also uncovering new growth and value, according to a new report from Accenture.
The Zero-Based Transformation: The Big Reset report, based on a global survey of 2,000 C-level executives across 15 industries, reveals an urgency to shift away from traditional cost reduction efforts that weren’t successful in the past. Executives acknowledge their current and future cost transformations must be interconnected with strategic priorities such as growth, sustainability and innovation and centered around building new technology-enabled capabilities.
According to the report, a vast majority of executives surveyed (92%) say that these transformations are no longer driven solely by financial considerations, but also need to account for their impact on their company’s sustainability and purpose. Their priority is not only profitable but responsible growth. In addition, leaders today are looking to reset their business holistically, instead of focusing on one or two areas as in the past. Virtually all executives (96%) indicated that their cost transformation plans span all or most areas of their business.
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