Savings Realization Proof System

A simple but finance-grade system to prove savings are real—not just negotiated.

Run the OperationPlaybook45 min

Primary outcomes:

  • Cost reduction: makes savings durable and visible (prevents "it never showed up")
  • Risk mitigation: avoids double counting and credibility loss

Beginner truth: Negotiated savings aren't savings until they show up in invoices/budgets and are tracked to proof.

Savings types (plain English)

Rate savings

Unit price down (e.g., $/hour, $/unit)

Volume savings

Fewer units used (demand management, waste reduction)

Avoided spend

Prevented an increase or removed an unnecessary line item

Process savings

Duplicates prevented, credits recovered, leakage stopped

Templates

Baseline Definition Rules

Copy/paste rules for defining savings baselines

Baseline Definition Rules

- Baseline period should be representative (typically 3–12 months)
- Use the same scope (sites, services, vendors) pre vs post
- Normalize obvious drivers where needed (volume, occupancy, seasonality)
- Document assumptions and exclusions
- Define savings type (rate/volume/avoidance/process)

Savings Pipeline Tracker

Track initiatives from idea to realized

InitiativeCategoryVendor(s)TypeBaseline $Forecast $Realized $Proof linkStatus
(add rows as needed)

Double-Counting Prevention Table

Prevent overlap between initiatives

InitiativeCould overlap withOverlap riskRule to prevent double countOwner
(add rows as needed)

Realization Proof Log

Finance-friendly proof documentation

InitiativeProof methodEvidenceReviewerDate reviewedNotes
(add rows as needed)

Proof methods:

  • • invoice delta with same volumes
  • • rate card vs invoice match
  • • budget vs actual variance with documented driver
  • • credits recovered applied to invoice

Definition of Done

  • every initiative has a baseline, a method, and an owner
  • realized savings are documented with evidence links
  • overlap/double-counting is explicitly controlled
  • leadership can see forecast vs realized without debate

Change log

v1.0 (2026-01): Latest release