
In this lecture you make the decision that every cost programme starts with: whether to take the money out of the line or to change the work that creates the line.
This course is built from five disciplines: operations management, process improvement, cloud cost management, budgeting, and performance indicators.
The map of the course
A simple dictionary for reading lectures from other fields as cost work
Three questions to ask after every lecture
A short self-diagnostic that shows which sections to watch first
Download the Cost Line Decision Sheet and fill it in for your own line.
Tools in this lecture
Files to download (1)
Why this appears once a company passes fifty people
How it differs from project management and from the chief operating role
What it is actually accountable for
The typical mistakes and false expectations about it
Tools in this lecture
Models and methods explained (2)
What a process is and what it is not
End-to-end thinking, and value for the business
Mapping the key processes of a company
Where formalisation helps, and what over-regulating costs you
Tools in this lecture
Ready to use on the slides (2)
Models and methods explained (3)
Why metrics fail in most companies
Input, output and outcome indicators
Leading and lagging metrics, and who owns each
Operational dashboards, without analytics for its own sake
Tools in this lecture
Ready to use on the slides (6)
Models and methods explained (3)
Where a company actually loses time, money and focus
Bottlenecks and system constraints
Queues, downtime and the cost of switching between tasks
Quick wins, standardisation, and when automation is genuinely needed
Tools in this lecture
Ready to use on the slides (11)
Models and methods explained (6)
Why teams fail to connect with each other
Cross-functional processes
Reducing the friction that costs money without appearing on any line
Weekly, monthly and quarterly rhythms that do not become theatre
Tools in this lecture
Ready to use on the slides (14)
Models and methods explained (2)
Why order keeps breaking down as you grow
Operations during scaling
Resistance, sabotage and inertia
Prioritising change, and when to stabilise rather than rebuild
Tools in this lecture
Ready to use on the slides (12)
Models and methods explained (3)
What the toolkit actually consists of
Process and workflow systems
Metrics, dashboards and data sources
When a spreadsheet beats a corporate system, and the automation mistakes
Tools in this lecture
Files to download (3)
Ready to use on the slides (10)
Models and methods explained (2)
Positioning this as a source of margin rather than an overhead
Demonstrating the value to the business
Calculating the return on operational management
Building the roadmap
Tools in this lecture
Files to download (3)
Ready to use on the slides (10)
Models and methods explained (1)
What a process is, and the characteristics that define one
The different types of process
What improvement means in practice
The benefits, stated in terms a finance director will accept
Tools in this lecture
Models and methods explained (1)
The core values behind improvement work
What triggers it, and what waste actually is
Standardisation, the cheapest control there is
Process maturity, the five phases, and where to start
Tools in this lecture
Ready to use on the slides (5)
Models and methods explained (3)
What mapping is, and how it differs from modelling
Stakeholder, relationship, flow, cross-functional and value stream maps
What a map consists of
The stages of mapping, run end to end
Tools in this lecture
Ready to use on the slides (6)
Models and methods explained (1)
The improvement framework
Connecting it to strategy so it survives budget season
The phases from planning through to implementation
Tools in this lecture
Ready to use on the slides (9)
What process architecture is and what it buys you
Process-oriented architecture
Modelling, and how to manage the modelling effort
Where to start when nothing is documented
Tools in this lecture
Ready to use on the slides (2)
Services and apps shown in this lecture (4)
Models and methods explained (2)
What problem solving means when the cost is systemic
5S, 5 Whys, 8D, the activity network and affinity diagrams
Benchmarking and structured brainstorming
Checklists, the cause-and-effect diagram and the flow diagram
Tools in this lecture
Ready to use on the slides (13)
Linear regression and the nominal group technique
The prioritisation matrix
SIPOC and SWOT applied to a process
DRIVE, ICOR and the problem-solving funnel
Tools in this lecture
Ready to use on the slides (10)
Services and apps shown in this lecture (1)
Models and methods explained (10)
What a culture of improvement looks like day to day
The phases of culture change, and what a good one contains
Changing behaviour rather than publishing a policy
The role of managers in holding a saving in place
Tools in this lecture
Ready to use on the slides (7)
Models and methods explained (3)
What cost management of this kind is, and why it became a discipline
Where it sits between finance, engineering and procurement
The roles involved, and the conflicts between them
The maturity model, and what this function is judged on
Tools in this lecture
Ready to use on the slides (4)
Models and methods explained (2)
The typical cost structure across the major providers
Compute, storage, network and managed services, and where the leaks are
Why the invoice is incomprehensible, and how to translate it
Shared costs, hidden spend, and the accounting architecture underneath
Tools in this lecture
Ready to use on the slides (5)
Models and methods explained (6)
Why a business needs chargeback or showback at all
Allocation models: by product, by team, by user
The tags you actually need, and the ones that are noise
Tagging mistakes, and not becoming the spending police
Tools in this lecture
Ready to use on the slides (10)
Models and methods explained (5)
Compute optimisation: right-sizing, autoscaling, idle resources
Storage classes and lifecycle policies
Reservations and commitments, and when they pay off
Development and test environments as the main source of waste
Tools in this lecture
Files to download (3)
Ready to use on the slides (11)
Models and methods explained (1)
Which metrics this function actually needs
Cost against usage against value, which are three different questions
Unit economics: cost per user, per feature, per transaction
Dashboards for the technology, finance and product leadership
Tools in this lecture
Files to download (3)
Ready to use on the slides (11)
Models and methods explained (1)
Launching this from nothing in a company
The monthly, quarterly and annual rhythms
Communicating with engineering, product and finance without conflict
The resistance you will meet, and a 90-day roadmap
Tools in this lecture
Files to download (3)
Ready to use on the slides (15)
Models and methods explained (1)
The role of budgeting in a business
What can genuinely be budgeted and what cannot
The options for optimising a budget rather than cutting it
Linking the budget to the business it serves
Tools in this lecture
Ready to use on the slides (15)
Models and methods explained (3)
What comes first, the budget or the strategy
Gathering the information a budget needs
Where market benchmarks come from, and how to use them
Calculating the return on the budget, and knowing whether it is fit for purpose
Tools in this lecture
Ready to use on the slides (4)
Models and methods explained (2)
The metrics that drive this cost line
The line items it breaks into
Budgeting brand and awareness activity
How not to overspend, and how to move money flexibly during the year
Tools in this lecture
Ready to use on the slides (5)
This course contains the use of artificial intelligence.
Cutting ten percent from every budget line is not cost optimization. It is an instruction, and it works for about two quarters. Here are 334 tools for optimization that lasts: 239 ready-to-use procedures, templates, checklists and AI prompts, 69 models and methods, 16 working files and 10 services shown on screen.
Open a lecture, take the decision sheet, and review one cost line this week.
Why cost cuts come back
Cuts are applied evenly, so efficient teams suffer as much as wasteful ones. The process that generates the cost stays the same, technology bills grow without an owner, and nobody proves that the saving was real. Two quarters later, the costs are back.
What changes after this course
You know where the money leaks, take waste out of processes, control technology costs, build a budget that holds and prove savings with indicators, so output stays and the cost does not return.
What is inside: 334 tools, counted lecture by lecture
You do not have to take this number on trust. Open any lecture and read its description: every tool inside is listed there by name.
Where the tools are
Where the money goes (3 sections, 91 tools). The operational layer, metrics, leaks, tooling and return on operations.
Process waste (3 sections, 77 tools). Removing waste, governing improvement, root causes and making it stick.
The technology bill (2 sections, 74 tools). Cutting technology cost without breaking things.
The budget (2 sections, 53 tools). A budget that survives, payroll, training and software.
Proving the saving (3 sections, 64 tools). Indicators, display, implementation and myths.
Who is teaching
I am Mike, the #1 HR instructor on Udemy, with 1,800,000+ course enrollments from 170,000 students, and the author of about 200 books on Amazon. I built the people system at Preply as it became a unicorn and worked at Wargaming, iDeals and Alfa-Bank across 20 years in HR. I hold PHRi, SHRM-CP and HCI sHRBP certifications and represent HRCI in Eastern Europe. I am also a founder and lead the strategy of my own academy.
At Alfa-Bank a bonus system was built for retail branches, and to administer it the bank had to create a whole department of three people who calculated bonuses in Excel. Nobody had counted the cost of running the system when it was designed. Every process has an operating cost, and it should be part of the decision from the start.
How to use the course
Start with where the money goes, then use the process, technology and budget sections on your own costs. Section and lecture titles show how many tools are inside, and each lecture description lists them by name.
What is included
Where to start
List the three cost lines that grew fastest last year and what each one buys, then open the first section. Enrol now and start your first lesson today.