Cost Transformation
Drive Efficiency and Eliminate Waste while Enabling Mission
Rios Partners’ clients often lack clarity into how their budget is spent. Without that insight, they can’t optimally allocate resources. By increasing transparency through our Cost Transformation approach, we have found again and again that government agencies can eliminate or repurpose 10 – 20% of spending
Government agencies lack clarity on their costs for many reason: rising costs of goods and services, changing priorities, imperfect cost accounting systems, etc. We increase clarity by classifying spend and then identifying and optimizing efficiencies in operations, procurement, and services.
Cost transformation allows organizations to eliminate waste and strategically invest in mission-critical priorities by evaluating and reallocating current spending. It allows organizations to address the rising costs of goods and services while ensuring you can meet your mission with fewer resources.
Rios Partners has classified over $4B in spending and identified 10 – 20% savings opportunities for our public sector clients. Rios has found actionable efficiency levers for a diverse set of federal clients with divergent budgets, mission requirements and operating structures. Rios Partners will execute Cost Transformation 100% fees at Risk.
Mapping your Costs...
For leaders who feel they don’t have the insight into how to most effectively allocate their resources, we develop a single source of spending data to allow leaders to understand the true costs of activities across their organization.
We work with you to understand what critical functions your organization must serve and what are the goals you seek to achieve – 10% cost savings, 1% reallocation of funds for mission-critical purposes, 5% decrease to physical plant? With those goals in mind, we conduct spend analysis. After building a single source of spending data, we build a taxonomy to classify costs against the goals of the Cost Transformation by mapping all spending against activities conducted by the organization.
Spend visibility highlights the gaps between budgeting and the actual cost of these activities, including the costs of both mission critical and non-mission critical activities. With this transparency in place, we identify the specific opportunities for high impact improvement and efficiency gains. We recognize it’s not enough to simply provide visibility, so we work with leaders to prioritize and then action opportunities based on the speed at which those actions can occur and the potential savings opportunities.
... to drive savings and lock them in
We then help the organization execute those actions by building step-by-step strategies to achieve savings and lock those savings in for the long term. We work with the agency to build the necessary program management and change management practices to prevent waste from creeping back and embed these changes into standard workflows to safeguard long-term sustainability.
Rios Partners can identify your cost baseline in 8 weeks and allow you to save taxpayer money and protect mission critical functions.
