Cost as a Mirror of Strategy by Peter San Martin

The source "Cost as a Mirror of Strategy: Closing the Gap Between Ambition and Profitability" emphasizes the critical need for financial leaders to align company spending with strategic objectives. It argues that profitability suffers when cost structures don't reflect stated strategies, often due to inertial spending on outdated activities. The article provides examples like Blockbuster's failure and success stories like LEGO, Natura, Danaher, and Frito-Lay to illustrate the impact of strategic cost management, offering practical steps and self-assessment questions for CFOs to bridge the gap between ambition and financial performance. Ultimately, it asserts that cost management is a continuous strategic discipline that should fuel growth by directing resources toward differentiating capabilities.