Discover proven financial strategies for mastering efficient growth in an era of economic realignment
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Drive Efficient Growth Amid Economic Change
4 financial strategies for mastering efficient growth
Only 5% of companies achieve efficient growth, but those that do deliver 51% higher total shareholder returns (TSR) relative to industry peers. For CFOs and executive teams, embedding efficient growth principles into financial strategies is essential to safeguard shareholder value and position the enterprise for resilience and long-term performance.
Download "4 Interlocking Financial Strategies for Mastering Efficient Growth" to:
- Discover the three performance thresholds that define efficient growth
- Explore four strategies used by growth leaders across every major industry
- Learn why most organizations fail to translate growth into durable returns
About Efficient Growth
Efficient growth means outperforming industry peers across three dimensions at once: sustained revenue growth, structural cost discipline and near‑term margin expansion with growth.
Boards, investors and CEOs demand this outcome, yet few companies deliver it. Over the last decade, only 105 companies across global S&P indexes have consistently exceeded peers on all three dimensions. Efficient growth remains rare—but repeatable. This research defines what separates efficient growth leaders and outlines the financial strategies CFOs use to convert growth into durable shareholder returns.
Efficient Growth FAQs
What is efficient growth?
Efficient growth is a balanced growth profile that combines both top-line and bottom-line growth. Efficient growth companies have achieved sustained long-term revenue growth with simultaneous margin improvements over the past 20 years. Measured against peers, these companies meet the following three criteria:
- Top quartile for eight-year compound annual revenue growth (relative to industry peers)
- Bottom quartile for median total costs (relative to industry peers)
- Top quartile for number of years expanding both revenue and earnings before interest and taxes (EBIT) margins simultaneously
Why is efficient growth important for CFOs?
CFOs, as the stewards of a company’s financial resources, are the primary architects of a company’s growth trajectory. Efficient growth is the optimal strategy because it outperforms alternative growth strategies (e.g., growth at all costs, purely bottom-line-focused growth) across industries and across business cycles. Moreover, equity markets have rewarded efficient growth.
What challenges do CFOs face in achieving efficient growth?
Several practices prevent 95% of organizations from achieving efficient growth. These include chasing competitors’ capabilities, aversion to risk taking, overfocus on underperforming investments, and unprincipled cost management and investment decisions.