Catalog

• List catalog of products and services within each Budget Unit; describe what each includes; the granularity varies by level of cost model

  In simple cost models, these are simply high-level product sets.

  To develop a service catalog with rates, catalog items are at the level of detail of customer purchase decisions, following a granularity guideline established by the senior leadership team.

  Key learning: What are our products in the eyes of our customers (whether they be clients or peers)?

• Choose a Unit for each catalog item

Units (items on rate sheet)

• Select pricing units

  For each catalog item, the unit of sale (ie, price per what) is determined. Some products are sold in units of staff's hours; others by transaction or machine usage; still others by indices such as customers' headcount.

  Key learning: How do clients think about our products? What do they think they're paying for?

• Link Budget Units that will share a common set of rates (eg, the same price per hour)