Bill CanadyCEO & Founder, The 80/20 Institute · Be a Great CEO: Learn how to Fix it, Grow it, & Sell it.

Stop Cutting Costs, Start Growing Revenue: Unlock Hidden Capacity! #shorts

27 Aug 2026 · 1 min

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In this concise business insight, Bill Canady argues that leaders should stop focusing on cost‑cutting and instead examine the underlying capacity that generates work. He emphasizes that merely achieving a "zero‑up" (a neutral financial change) by cutting expenses reflects a misunderstanding of value creation. Canady points out that in a $310 million company, 27 % of functional capacity resides in the bottom quartile—representing a dormant growth engine rather than a cost issue. He urges viewers to locate similar hidden capacity within their own organizations and redirect it toward profit‑generating activities.

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The difference between them is whether you change the thing that generates the work. And the point is not to cut. Say that back to yourself before you walk into the first review. The point is not to cut. A zero-up that produces only a savings number was run by someone who didn't understand it. The deliverable is a destination. Capacity moved to where the profit lived, owned by a name with a number attached. 27% of a company's functional capacity was sitting at the bottom of the quartile of one $310 million business. That's not a cost problem. That's an entire growth engine parked, running, and going nowhere. Go find yours.