A strategy of growth
Understanding the ‘Total Impact’ of an organisation will be become a fundamental input in to the strategic growth choices faced by Boards.
- We expect more organisations to be smarter about measuring and communicating their Total Impact – across economic, social, environmental and tax perspectives – in an attempt to respond to the public backlash against large corporations in late 2012. This will help them to make better choices about where to reallocate or invest capital in areas that can make a bigger overall impact.
Smart pricing becomes a more commonly used tool to drive top and bottom line growth especially those organisations facing capital constraints.
- This development will be driven by better analytical capability, data and decision-making. The majority of companies are yet to achieve pricing excellence; our experience suggests that they could increase net margins by up to 20% to 30% through smarter pricing. We’ll see more companies using dynamic, sophisticated pricing strategies to attract and retain customers, using more lessons from behavioural economics – particularly when it comes to framing pricing decisions, through the use of defaults and the careful ordering of propositions.
Companies with cash will start to spend it during 2013, but partly just for replacement investment rather than major new capital projects in the UK.
- Deals activity should pick up gradually as the economy revives.