JOURNAL ARTICLE

Cost Cutting That Makes You Stronger.

  • Published In: Harvard Business Review, 2023, v. 101, n. 4. P. 42 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Couto, Vinay; Leinwand, Paul; Subramanian, Sundar 3 of 3

Abstract

The article focuses on how resilient companies strategically manage costs to drive sustainable growth rather than relying on short-term cuts. It highlights Danaher's approach of treating costs as investments and continuously improving efficiency through its Danaher Business System, contrasting this with reactive, across-the-board cost cutting that can weaken organizations. Drawing on a study of 1,500 large global companies, the article identifies five critical steps for successful cost transformation: connecting costs to outcomes, radically simplifying operations, digitally reimagining value chains, leveraging ecosystem partners, and building a sustaining cost-focused management system. It emphasizes the importance of leadership alignment, early wins, cultural change, and ongoing accountability to embed cost management as a strategic capability that supports long-term innovation and growth.

Additional Information

  • Source:Harvard Business Review. 2023/07, Vol. 101, Issue 4, p42
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • ISSN:0017-8012
  • Accession Number:164237079
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