Worksheet: Cost the new model against the old

A saving promised as one total is rarely checked. This sheet sets each function's people and cost today beside the same figures for the new model. It names the owner of each change, and checks the totals a year later. It builds the Competent step of the check:

The new model's people and cost by function sit beside the old, and each change has an owner.

Step 1. Before and after, by function

Take today's figures from the baseline: the payroll and the ledger. Take the new model's from the design.

Function	People today (FTE)	People, new model	Cost today	Cost, new model	Change	Owner of the change






Total
e.g. Customer service	70	58	$6.0m	$5.1m	−$0.9m	Head of sales

Step 2. How the cost profile shifts

Measure	Today	New model	Change
Central cost (% of total)
Local cost (% of total)
Fixed cost (% of total)
Overhead (% of revenue)
Total cost

Step 3. The check a year on

Measure	Planned	Actual	Why the gap
Total people (FTE)
Total cost
The function that moved most

A business under 50 people: list the five or six kinds of work, who does each and what it costs, before and after the change. Check it once, a year on.

Done when: every function has its before and after, every change has an owner, and the totals were checked a year later.

Written for this check, from the operating model handbook's before-and-after sheet (T23).