Unlock Cost Optimization: Protect Value While Reducing Spend in 2026

As cost pressures mount and revenue growth slows, CFOs must reposition spending to drive value. Gartner business insights show that a disciplined, value-driven approach to cost management — reducing unnecessary spend, optimizing enterprisewide performance and reinvesting in high-value capabilities — helps organizations sustain competitiveness and fuel growth. Efficient growth companies excel by embedding cost consciousness and innovation into every decision.

The Gartner cost optimization approach is built on three actionable pillars: systematically reduce unnecessary spending, optimize enterprisewide performance and invest in future sources of value. By balancing immediate financial pressures with long-term strategic objectives, finance leaders can foster a cost-conscious culture, embrace innovation and ensure spending decisions fuel sustainable growth — even in volatile market conditions.

• Organize your cost management strategy. Establish clear accountability and ownership for your cost management strategy. Guide executive teams through structured dialogue to clarify critical elements, collect data on peer cost structures and identify size reduction opportunities. This foundation ensures your cost plan is aligned and actionable.
• Engage budget owners for opportunity. Work with budget owners to identify cost reduction opportunities without compromising performance. Use scoring templates to evaluate activities, uncover savings beyond headcount, and empower owners to surface ideas that drive efficiency and maintain value.
• Streamline and prioritize initiatives. Build a portfolio of cost management initiatives to achieve lasting shifts. Evaluate restructuring, outsourcing and automation opportunities. Prioritize ideas based on ease, impact and risk, ensuring your final list delivers measurable financial results and operational compliance.
• Execute and monitor for success. Clarify proposed reductions, map initiatives on a strategic roadmap and enforce accountability for progress. Share timelines and benefits with leaders, and have sponsors provide regular updates to ensure milestones are met and cost management remains a continuous discipline.

Get more insights and strategies into crucial topics, like cost optimization, and more at Gartner Finance Symposium/Xpo 2026.