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When we asked executives to state their top priority, one theme dominated: growth. Executives are shifting away from downsizing and outsourcing toward innovation, scenario planning and pricing optimization. But nearly 60 percent of them remain concerned that the effect of the recession on consumer behavior will linger for at least three more years. The question is: What will it take for companies to accelerate faster than the competition?
In this guide, we define 25 of the most popular and pertinent management tools, a list that continually evolves. This year's guide, for example, includes social media, which has grown rapidly but ranks low in executive satisfaction.
Benchmarking displaced strategic planning from the number one spot during the downturn. Although benchmarking still tops the list in this year's study, its use varies by region as executive priorities begin to shift toward growth and the tools that support it.
A perennial number one on the list, strategic planning was displaced for the first time in a decade by benchmarking during the downturn. Strategic planning nonetheless remains one of the most widely used tools, and still garners the highest satisfaction rating of any management tool.
Along with strategic planning, mission and vision statements are among the most widely used tools, and consistently rank above average in satisfaction.
CRM was the most used tool in North America, where executives are emphasizing the use of customer insights to jump-start—and sustain—revenue growth.
Outsourcing is among the cost-cutting tools that appear to be losing favor as executives seek growth. Along with downsizing and shared service centers—which also are used to reduce headcount—outsourcing earns below-average satisfaction scores. Among North American large-company executives, the number of those who agree that outsourcing benefits everyone has dropped by 25 percent since 2004.
Balanced scorecards ranked sixth on our list, thanks in part to heavy use by more than half of all emerging market executives, a sign that executives in those markets are seeking to make their companies more sophisticated competitors.
Change management programs are a new addition to our study this year, and are particularly favored by European firms, who are the leading users.
Number seven on the list, core competencies are areas of deep proficiency that can help distinguish a company from its competitors because they are hard for competitors to copy or procure.
Strategic alliances not only make the top ten list, but also rank among the tools with above average satisfaction scores from executives.
Customer segmentation—another growth oriented tool—is most effective when a company tailors offerings to segments that are the most profitable and serves them with distinct competitive advantages.
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The top priority among executives: growth.
