Identify which costs to reduce and protect to drive growth and efficiency, even during inflation
Identify which costs to reduce and protect to drive growth and efficiency, even during inflation
Your guide to optimizing costs strategically, not tactically.
Strategic cost optimization rarely succeeds without three things:
Download this guide to increase the success of your strategic cost optimization initiatives.
Organizations are reintroducing costs as they pursue postpandemic growth opportunities. But while some spending is bouncing back from the austerity of recent years, input shortages and inflation have added a sizable headwind to optimizing costs.
In these conditions, it’s even more important to optimize costs without compromising growth. Watch this video for a quick primer on strategic cost optimization. (Also see the FAQ, “Is cost optimization my responsibility?”)
Cost optimization is a business-focused, continuous discipline to drive spending and cost reduction, while maximizing business value.
By taking a strategic cost optimization approach, business leaders can make more informed budgeting and spending decisions while investing for growth and digitalization.
Cost optimization is a continuous, business focused discipline aimed at maximizing business value while reducing costs. Cost cuts are a short-term move to decrease expenses. See these articles on cost-cutting:
Strategic cost optimization is a cross-functional collaborative effort across functions and businesses — and their leaders. It is not the job only of the CFO or finance team.
Given the inflationary environment, for example, margin management (e.g., pricing changes) can provide some respite against rising costs, but executive leaders must manage the pressure on profitability together. Three actions are needed to optimize costs without compromising growth:
Gartner is
an objective resource for more than 14,000 enterprises in 100+ countries.Learn more about how we can help you achieve your mission-critical priorities.