Drive business performance with strategic cost optimization

Identify where to reduce, protect and invest to drive growth and efficiency

Download the Cost Optimization Guide

By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

Contact Information

All fields are required.

  • Step 2 of 3

    By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

    Company Information

    All fields are required.

    Optional Optional
  • Step 3 of 3

    By clicking the "Submit" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

    Discover 3 keys to manage your organization’s costs

    Despite overwhelming evidence that effective cost management supports enterprise performance, more than 50% of organizations have yet to establish clear measures of success for their strategic cost initiatives. 

    Download our guide to learn how you can accelerate business performance by focusing on the three key pillars of strategic cost management:

    • Define clear measures of success

    • Adopt a consistent framework 

    • Leverage cross functional collaboration

    Strategic cost optimization delivers on costs and growth simultaneously

    Gartner research shows that leading companies take a proactive and strategic approach to cost optimization — strategically cutting cost while funding new growth at the bottom of the business cycle. This approach equips leaders to sustain through uncertainty and disruption of crises like the COVID-19 pandemic.

    A cost management framework to prioritize investments

    The Gartner Cost Optimization Decision Framework helps you prioritize cost optimization opportunities by value, not just the potential to reduce spending.

    Use this framework to:

    • Create a prioritized list of your most promising cost optimization opportunities
    • Assess the level of impact of your cost plans across key decision factors/criteria
    • Evaluate the trade-offs between the benefits, costs, risks, and viability of different cost control initiatives
    • Map cost reductions on a simple grid to show the trade-offs and help build buy-in for your cost reduction strategy.

    Download the cost optimization framework for your function

    Additional cost optimization questions Gartner can help answer

    Cost optimization is a business-focused, continuous discipline to drive spending and cost reduction, while maximizing business value.

    Cost optimization helps functional leaders to maximize cost-savings. It includes:

    • Obtaining the best pricing and terms for all business purchases

    • Standardizing, simplifying and rationalizing processes and services

    • Automating and digitalizing IT and business operations

    Cost reduction is the process of decreasing a company's expenses to maximize profits and generate short-term savings. Cost optimization on the other hand is a continuous, business focused discipline aimed at driving spending and reducing costs, while maximizing business value.

    Sustainable cost optimization is based on 5 key pillars:

    1. Financial transparency: Increased financial transparency helps leaders understand how to drive business value through cost optimization. 

    2. Targets and benchmarks: After establishing transparency, executive leaders must examine how organizational spending compares with peers through external benchmarks. 

    3. Accountability of business units and individuals:  Executive leaders must foster a culture of commitment to cost optimization by clearly communicating which areas to focus on when proposing cost optimization ideas to leadership.

    4. Managing demand and supply of costs: Categorizing costs linked to both supply and demand can help executive leaders prioritize their cost optimization efforts. 

    Leveraging savings to drive enterprise strategy: Executive leaders should be proactive not only in optimizing costs but also linking the reinvestment of savings to business outcomes.

    Gartner is a trusted advisor and an objective resource for more than 14,000 enterprises in 100+ countries.

    Learn more about how we can help you achieve your most critical priorities.