Identify the top cost optimization initiatives for your ERM function

Four actions for effective cost optimization

ERM leaders must establish a continuous process to identify, plan and implement cost optimization initiatives to maintain business and functional momentum. Take these actions to overcome business challenges and successfully plan cost optimization initiatives:

  • Continuously monitor key risk indicators and collaborate with other functions to understand economic conditions
  • Manage employees through uncertain economic conditions
  • Build knowledge of the function’s cost drivers
  • Develop a robust action plan to effectively implement cost optimization initiatives and recognize nonnegotiable, scenario-independent growth initiatives

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    Gartner decision frameworks enable you — through a combination of scoring and executive judgment — to identify key cost optimization initiatives to implement each over time.

    • Assess the level of impact across six decision factors/criteria (eg financial impact, mission risk).
    • Evaluate the trade-offs between benefits, costs, mission risk and viability of cost optimization initiatives.
    • Map your cost optimization initiatives on a simple grid to show the trade-offs and help build buy-in.

    Strategic, programmatic cost optimization

    Urgent budget pressure is real, but be strategic and programmatic about cost optimization so that short- and midterm cost decisions don’t jeopardize the long-term effectiveness and objectives of your function and organization.

    Learn more about other tools to execute your cost management strategy

    Benchmark your ERM function's cost and value baseline

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