While downsizing was the rage in the first part of this decade, it is becoming increasingly clear that in the 21st century companies won't be able to cut their way to profitability. Cost cutting alone only saves money; it doesn't build a business. Unless cost savings are reinvested in the business, there can be no real, sustainable growth. Operations and capabilities pared to the bone rarely can respond to market opportunities, and so are vulnerable to competitors who can. In addition, costs must be reduced in a systematic and strategic way, with the focus on designing or redesigning processes for cost management.