Too many companies are focusing on cost-cutting rather than fueling growth, according to research from transformation consultancy Moorhouse.
While 54 per cent of organisations have initiatives in place to manage finances, just 22 per cent concentrate on how to improve performance, the research found. Also surprising is that only 19 per cent of firms are addressing new products and services to seize growth opportunities.
In addition, companies that have experienced some success in recent years are more likely to commit themselves to a strategy to further seize the momentum. Comparatively, those that have been less profitable look to tightening the purse strings as a way to get ahead.
However, the research showed that firms that invest in staff engagement and pursue growth rather than looking to save money, are more likely to get ahead. Remaining agile and "pro-change" means that a firm is twice as likely to get ahead, according to Moorhouse.
Stephen Vinall, managing director of the company, said: "Some UK businesses have become stuck in a mindset of cost reduction and internal efficiency drives, with little focus on initiatives that will generate their competitive edge and position them well for growth."
Employers may be pleased to learn, therefore, that money saving and growth can be achieved at the same time with a little careful planning.
By allowing staff to work remotely, for example, the overheads associated with office rental and desk space can be cut dramatically. Keeping the lines of communication open is easier than ever with technology such as free conference calls, cloud computing and social media.
Savings of up £34 billion could be made by companies that free up desk space, however, managers vastly underestimate the potential cost benefits, research by Vodafone has shown.
In partnership with YouGov, the mobile phone giant surveyed 500 key decision makers and found that despite the average desk costing companies thousands of pounds each year, more than one in three managers have not considered cost-cutting solutions such as home working.
Money saved in this way can then be reinvested in strategies to safeguard the future of the business and for growth opportunities.