7 January, 2026
Profitability versus growth is a common strategic dilemma: which should an organization prioritize?
Achieving profitability is essential, especially for organizations operating in the private sector.
However, becoming overly obsessed with cost cutting and efficiency without a clear focus on growth, whether organic or accelerated through mergers and acquisitions, can negatively impact the long-term value creation of any company at any size. I have seen many businesses fail by getting stuck in the middle, overly obsessed with current operations and operational excellence, hoarding cash, and trimming costs at the expense of growth.
When examining leading companies across many industries in countries such as the US, Canada, UK, France, Italy, Germany, China, South Korea, Taiwan, and Japan, their success is often driven by their ability to innovate, develop new products and services, and enter new markets, creating new growth lifelines for the years ahead.
From my perspective, even a simple application of the BCG Matrix will suggest the need to invest in developing more “Stars,” balanced by “Cash cows” that sustain short term operations.
This balance should be clearly reflected in the company’s investment appetite. As John F. Kennedy noted, “Change is the law of life. And those who look only to the past or the present are certain to miss the future.”
To conclude, organizations must prioritize investing in the future, and this can only be sustained if the strategy actively encourages growth related initiatives and investments as core strategic priorities.
