
Publication number: ELQ-39137-1
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Cost Reduction Programme Toolkit — 40 Levers with Reversal Risk, Sizing Model, Six-Gate Initiative Tracker
Take cost out of indirect spend and keep it out. Including what comes back.
Further information
• Size the prize top-down for the mandate and bottom-up for the commitment.
• Select levers on time to cash and reversal risk, not on headline percentage.
• Move initiatives through six evidence gates rather than reporting percentage complete.
• Name the mechanism that holds every saving before it is claimed.
• You have been asked for a cost number with a deadline attached.
• You run or support a savings programme and want it to hold at 24 months.
• You need to agree benefit definitions with a finance function.
• You want benchmark savings percentages guaranteed by category; ranges are indicative and labelled as such.
• Your spend is predominantly direct material with bill-of-material cost structures.
• You need a headcount reduction or restructuring methodology; this is third-party spend.
