Article at a glance:

Managing for improved corporate performance

Many executives are finding it difficult to improve the performance of their companies in today's competitive environment—and realizing that the problems they face are structural, not just cyclical. Traditionally, their response in tough times has been to put pressure on short-term operating performance to boost earnings, but this approach is no longer adequate. A new organizational strategy is required to develop growth initiatives even as companies pursue operating savings.

The take-away

To meet the expectations of shareholders at a time of unrelenting price pressure, companies should implement a strategy that calls for a new intensity of collaboration among their people. Growth initiatives would bubble up from line managers to senior executives, who would choose and review the most promising projects.