Operations: Invest in efficiencies?

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US CEO Insights

Joel Allison

President and CEO, Baylor Health Care System

“I see more movement toward looking at population health management and the fact that we need to learn how to manage the chronic diseases in a population, which account for so much of the healthcare dollar.”

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What are the most important transformations in operations that our company needs?

US CEOs continue to keep costs in check. Last year, 81% implemented cost-cutting measures. In 2013, 71% of US CEOs are planning cuts. (Explore the data)

In an environment of pricing pressure and slow demand growth, every element of direct and SG&A expense is getting a fresh look. Businesses are redoubling efforts to analyze—and scrutinize—dynamics on many fronts, including customer demand, labor costs, technology, transportation and regulatory/tax regimes. (Watch the CEO insights videos)

Yet CEOs are seeking more from operational leaders than holding the line on costs. They’re also being asked to create value and contribute to growth. Forty-four percent of US CEOs are investing to increase their company’s operational effectiveness.

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