Cost Transformation
Savings finance can verify, and that still hold next year.
Cut the budget, keep the work
Most cost programs report savings against a baseline budget. CFOs and internal audit have learned to ask a second question: which change in the work produced each saving, and will it hold next year? When the answer is a cut budget line and unchanged work, the cost comes back under another name.
Ask of every claimed saving
Before a saving goes into the forecast, three questions separate the durable from the temporary.
Read the flows that generate the cost
Cost is produced by flows of work. GSDPI™ reads each flow through five functions, so a team can see where the cost arises, what the program changed, and whether the demand that drove it is still arriving.
Reading a cost program this way, and holding each saving in its evidence state, is taught in the Foundation Course and applied to your own program in the Practitioner Intensive.
Learn it, then apply it to your own transformation.
Shared services, offshoring, automation and AI are all answers to that question. Work that enters through the side door, with no governed origin, is cost no budget planned for.
Is this zero-based budgeting?
No. Zero-based budgeting rebuilds the budget from zero each period. Zero-Based Transformation™ starts from the work and establishes what the operating model must change. The two can run together; savings hold when the work changes.
Where does ZBTOS teach this?
The Foundation Course teaches a cohort to read the flows that generate cost and to hold each saving in its evidence state. The Practitioner Intensive applies it to your own cost program.
Stay current. New reads on cost that stays out. Published by ETEGY.
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