Every year, engineering leaders sit around conference tables with finance partners discussing one question: “How should we optimize the engineering budget?” Unfortunately, “optimize” often becomes synonymous with “reduce.” Can we reduce headcount? Can AI replace developers? Can we outsource more work? Can we delay hiring? Can we spend less on learning? These questions may improve the next quarterly financial report, but rarely do they build better engineering organizations. As part of Engineering Leadership Playbook (ELP) I share this article on engineering budget planning.