Business Leaders Focus on Human Capital, Branding; Shift Away from Cost Reduction.

CHICAGO -- U.S. Business leaders are shifting their focus away from cost-cutting strategies to growth opportunities, according to the Grant Thornton Business Leaders Council.

The Council is composed of 36 CEOs and senior executives who meet twice a year to discuss and identify issues affecting the growth and profitability of U.S. businesses.

At its recent session, Council members emphasized the importance of gaining new customers, brand differentiation and prizing human capital in today's environment of accelerated growth and change.

CEO vulnerability

In this period of accelerated change, CEOs are faced with the balancing act of meeting - and exceeding - investor, shareholder and company expectations while mitigating a myriad of potential risks, according to the Grant Thornton Business Leaders Council.

When weighing opportunities versus risks, the Council pointed to the importance of:

--Maintaining the vision. Business leaders are challenged to match the company's vision and strategy against the choices and decisions they are faced with daily.

--Leadership intuition continues to play an important guiding role in screening a large number of potential change and choice opportunities. CEOs then have the responsibility to direct these decisions through an appropriate process in the organization.

--Company culture and environment. Once a decision has been made, it should be properly communicated and the company needs to have the appropriate environment and culture in place to embrace it.

"CEOs are charged with developing opportunistic plans for profitable company growth, while also dealing with anticipated - and unexpected - challenges and risks," says Cal Hackeman, partner in charge of the Business Leaders Council. "In light of current media scrutiny of CEOs, these business leaders are walking a tightrope of running a successful company where any misstep - perceived or factual - could result in their downfall."

For more information

To receive the summary report of the Business Leaders Council session, visit Grant Thornton's Web site at www.grantthornton.com/blcfindings.

Topics discussed at the Business Leaders Council session are further probed in a 300-respondent National survey, which will be available in July 2005.

About Grant Thornton

Grant Thornton LLP is the U.S. member firm of Grant Thornton International, one of the six global accounting, tax and business advisory organizations. Through member firms in 110 countries, including 49 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.