Efficient growth is sustained, long-term revenue growth with simultaneous margin improvement. Companies that accomplish efficient growth receive an annual shareholder premium of 7.05%, and see the largest premium paid by investors during a peak.
Over the past 20 years, only 60 companies across the Fortune 1000 and S&P Euro 350 had consistent year-over-year revenue and margin improvement and long-term growth that exceeded their industry peers.
Despite flat budget expectations, regulatory change and investor activism, your primary mandate as finance leader should be efficient growth. Yet only 10% of companies have consistently achieved simultaneous top- and bottom-line business growth. How have they succeeded in allocating resources to support current and future growth potential?
The best finance leaders focus on making better capital allocation and investment decisions, while also cutting the right costs. They allocate capital to bigger, riskier growth bets and innovation. They focus on managing businesses for asset efficiency, not just profit and loss performance. They scrutinize acquisition and partnership opportunities. And they communicate with investors effectively.
The world's 60 efficient growth leaders follow four rules to win over investors and make the right decisions. Take four steps to drive business growth.
Without realizing it, we create growth anchors: governance and processes intended to reduce risk can actually stifle growth initiatives. Efficient growth leaders remove harmful growth anchors and erect growth ladders by allocating capital to bigger, riskier growth bets and innovation. Learn what efficient growth leaders do differently.
Developing a growth-oriented capital allocation model is key to putting long-term flexibility above short-term investor returns. Learn how the best CFOs develop capital plans.
Our analysis of 3,000+ deals over 15 years shows that the approach to mergers and acquisitions taken by high-growth companies differs from that of their peers in five key ways: Average deal size, mix of deal types, consistency of deal-making across the business cycle, frequency of divestiture, and the extent to which they impair goodwill.
Amid economic uncertainty, leading CFOs follow five steps to drive top- and bottom-line business growth. They kill underperforming projects based on principled criteria. They develop a new theory of the customer’s changing preferences. They base metrics/KPIs in operational and capital efficiency. They identify and protect key revenue-driving expenses. And they cultivate innovation by running pilots in key segments.
81% of companies have undergone a major reorganization in the past 12 months. But there is no one-size-fits-all finance organizational structure. Find out how finance leaders structure their function for growth.
Four steps finance teams must take to help the business make better investments and drive business growth.
Key questions the executive committee should ask to assess readiness for a slowdown.
Seven mistakes to avoid and seven tactics for better capital allocation during periods of slow revenue growth.
Finance Research Leader
Finance Research Leader
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