
IMPACT
How FullCost changes the budget process
FullCost can transform the relationship between an internal service provider and its clients.
The old way:
. You're given a budget and you do the best you can with it.
. Clients see everything as free, and blame you when you can't satisfy their virtually infinite demands.
. You may set up bureaucratic governance processes to try to gain their input and mitigate demand, but the tensions remain.
The new way:
. Your budget is treated as a "checkbook" that's put on deposit with you by your clients.
. Everything you do has a cost.
. It's up to clients to decide what they will and won't buy (priorities), and to live within their means.
. The relationship becomes simple, businesslike, and not at all bureaucratic.
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