strategy+business is published by PwC Strategy& Inc.
 
or, sign in with:
strategy and business

Click here to download your copy
for $9.99


Shumeet Banerji is Chief Executive Officer of Booz & Company. Paul Leinwand is a Partner in Booz & Company's Chicago office. Cesare R. Mainardi is Managing Director of Booz & Company's North American business and is a member of the firm's Executive Committee.


"In this short book you will find not only clear thinking about strategic capabilities, but also much-needed advice about how to cut costs without losing the capabilities that make your firm distinctive in its industry."
--Tom Davenport, President’s Distinguished Professor in Information Technology and Management, Babson College


"...details a method of becoming cost effective in good times and bad. ... A particularly useful read given the times!"

--Larry Bossidy, former CEO, Honeywell International


For most companies, cost cutting in a down economy means across-the-board slashing that "spreads the pain" of budget reductions across many departments. While that may sound like the best approach for getting critical results fast and for limiting political infighting, it is a mistake–one that will leave your company weaker, not just smaller.

Instead, companies that need to reduce costs should treat the challenge as an opportunity to identify and reinforce their key capabilities, while divesting from those activities that do not truly reflect the business’s strengths or long-term goals. This more strategic approach will make your company more resilient as tough times continue and more robust as recovery begins.

In Cut Costs, Grow Stronger, a 54-page e-book published as part of the Harvard Business Press "Memo to the CEO" series, Booz & Company’s Shumeet Banerji, Paul Leinwand and Cesare Mainardi provide executives with the tools they need to rapidly implement capabilities-driven cost reduction. First they demonstrate how to identify and clearly articulate your company’s key capabilities–not just core competencies or skill sets, but those very few strengths that, in combination, define how your organization competes. You can then use this information to create your company’s unique blueprint for effective and efficient cost reduction. The authors’ detailed, step-by-step framework walks you through the process, which can be completed in as little as two or three months–it’s something that you can do now.

Harvard Business Press        54 Pages            July 2009


 
Booz & Company Senior Partner and North American Managing Director Cesare Mainardi recently sat down with Paul Michelman of Harvard Business Publishing to discuss how executives should use a strategic approach to cutting costs—but often don't. His thoughts are based on the recently-published ebook, Cut Costs, Grow Stronger, co-authored by CEO Shumeet Banerji and Partner Paul Leinwand, detailing how cost cutting is and should be a strategic act, linked to a capabilities-driven strategy.