When times are tough, the instinct of many executives is to squeeze existing assets: make platforms do more with less, reduce the total cost of ownership, and extract value through cuts.
One study found that 76% of CFOs said that challenging market environments increase pressure on them to drive cost efficiencies and hit short-term earnings targets. Those cuts can involve funding for long-term priorities; the same study found that 50% of finance leaders aimed to meet short-term targets by reducing investment in areas such as Environmental, Social and Governance (ESG).
