TORONTO, Nov. 10, 2014 /CNW/ - Canadian private companies are confident in their growth prospects and most view that their addressing potential shortfalls in their processes and operational structures is key to achieving profitability, according to a PwC report released today.
The 10th annual Business Insights Survey, an analysis of two separate surveys of Canadian private companies, notes that of respondents who have invested in process transformation, the vast majority have realized their expected benefits from the investment. Conversely, those who did not invest in process change said they were instead focused on revenue growth.
Transformation = profit
- Operations redesign and business process transformation was chosen as the top priority for improving profitability, followed by spend analysis and cost containment, consolidation and enhanced procurement and sourcing practices.
- The survey notes that 77% of respondents invested in process transformation, with 70% of these reporting that they realized their expected benefits.
- Process improvement was also seen as the top priority for enhancing competitive performance, ahead of customer targeting, maximizing return on investment and improving staff skills.
Confidence sky high
- Private companies in Canada are here to stay. Of the companies surveyed, a whopping 81% are striving for growth over the next 12 months, compared to just 2% who plan to exit.
- More than half (52%) have set a growth rate of at least 7%, and nearly a quarter (22%) are stretching to 15% growth and beyond.
- Top strategies for growth include improving sales and marketing campaigns (47%), developing new products and services (40%), engaging mergers and acquisitions (38%) and enhancing the customer experience (33%).
Consolidating and controlling costs
- Consolidation is a reality for Canadian private companies, with more than half (55%) stating that they either have consolidated in the past or plan to in the future.
- Almost half of respondents (48%) cite spend analysis and cost containment as a top priority for their business and 78% have undertaken some sort of cost containment measure in the past four years. More than half (52%) of respondents continue to see the success of their cost containment strategies.
- Supply change management also helps keep expenses down, as 90% of respondents believe supply chain improvements will be important to reduce costs in the next two years
Quotes: Saul Plener, National Leader, Private Company Services, PwC
"Investments in profitability are about operating smarter and taking a critical look at the business, functions and strategies. This requires a holistic approach, rather than a focus on quick wins."
"Growth is crucial, but it can't be achieved without making profitability a priority. Operational efficiency and business transformation are critical enablers to revenue growth."
About PwC Canada
PwC Canada helps organizations and individuals create the value they're looking for. More than 5,800 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 195,000 people in 157 countries. Find out more by visiting us at www.pwc.com/ca.
About PwC's Private Company Services (PCS)
More than 65% of PwC Canada's clients are private companies, ranging from high net worth individuals to owner-managed family businesses and large, professionally-managed businesses. PwC's Private Company Services (PCS) group is a dedicated team of advisers who help private company owners resolve day-to-day business issues, create value and achieve long-term success. PCS offers the perspective of a third party with professional insights, business and technology consulting, deals, tax and accounting expertise. For more information about PwC's Private Company Services, please visit www.pwc.com/ca/private.
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SOURCE: PwC (PricewaterhouseCoopers)