Caught between the demands of running the business and driving transformative change, many companies feel pressured to “choose” between profitability and growth. However, top-performing companies demonstrate that it’s possible to achieve both.

With the right approach, disciplined cost productivity becomes a powerful enabler—fueling steady growth, supporting ambitious initiatives, and earning shareholder trust. In our experience, this discipline translates into significantly higher total shareholder returns (TSR), even during challenging economic conditions.

The best companies position themselves for success by building capabilities around five critical themes:

- Simplicity
- Automation and digitization
- New ways of working
- Visibility
- Resilience with sustainability

These organizations understand that managing the balance between day-to-day operations and bold strategic investments is crucial to staying ahead in an unpredictable future.

Many leaders wrestle with the perceived trade-off between cutting costs and pursuing growth. But the most successful companies recognize they don’t have to choose—they can excel at both.

While the pressure to deliver immediate productivity gains and fund long-term growth is ever-present, winning organizations develop enduring capabilities that allow them to thrive on both fronts simultaneously.

For many companies, the biggest challenge lies in developing the capabilities and embedding the necessary changes to balance running the business with transforming it. The best companies foster speed and agility to keep moving forward, ensuring they can identify what's holding them back and take action to overcome obstacles. They invest in pinpointing the routines and processes crucial for driving change. These organizations celebrate all achievements—recognizing cost-saving champions just as much as growth leaders—and place a strong emphasis on shifting executive behavior.

It’s a demanding task. However, as top-quartile TSR companies have demonstrated through both prosperous and challenging times, building the lasting capabilities to tackle cost productivity alongside top-line growth is the most effective way to capture shareholders’ attention.

How can you use both levers more effectively to drive your business profitability upwards?