According to a new study from Gartner which surveyed 317 CFOs and finance leaders, nearly two-thirds are planning at reductions in selling, general, and administrative budgets this year.
The survey also found that 18% are looking to cut budgets across all departments, with the biggest anticipated cuts in marketing, with 31% of respondents expecting a budget cut of more than 10%.
To adjust to this new normal, Gartner recommends the following four cost management tactics:
- Think big: Consolidate products and services into fewer lines of business, building on a foundation of a narrower industry footprint.
- Involve the business: Include other decision-makers to explore identify best cost-saving opportunities.
- Establish new leading indicators: Gartner analyst Dennis Gannon, Advisory VP for the Gartner Finance Practice says, “The organizations that will come out of this crisis in leadership positions are those that quickly move resources to emerging areas of opportunity while competitors are ducking for cover.”
- Create a recurring headwind and tailwind cost report: Identify and quantify uncertainties in the external environment in an effort to gain full transparency into the factors that might affect business performance.
For more information, you can find the Gartner announcement here.
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