Revenues

• Identify deliverables funded by client-provided revenues (as distinct from core budget)

  Some costs may be funded by direct payments from clients (reimbursements, or chargebacks). These revenues are identified.

  Key learning: What can we charge for, versus what comes out of our core budget? How much budget is needed to do the things clients are asking for?

• Identify specific client checkbooks (where designated)

• Decide mark-ups, discounts; enter fixed-fee revenues

Tuning and executive scrutiny

• Tune all data to reality

• Executive scrutiny to the point of confidence in realism and frugality

  Senior leaders review costs to ensure that managers are being sufficiently frugal.

  The organization's top executive must study the plan, identify errors and "fat" in the budget, and become so comfortable with the managers' inputs that he or she will be confident defending the proposed budget and rates as the true cost to shareholders/taxpayers/donors.

  Requirements: A set of reports to view the critical cost drivers by manager and by line of business.