The leading software platform to help you find the answers

to the toughest cost and performance questions

How much does it cost to keep an aircraft carrier in a state of readiness?

Trusted and used by more than 450 organizations and 600 consultants across the globe

Table of contents

Meet the professional’s choice

Why choose CostPerform

Software designed by experts

What makes CostPerform a world-class

software platform?

Cost allocation methods

Industry templates

Our markets

Case: TBM at the Small Business Administration

Short success stories

Global Partner Network

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Thanks to more than 20 years of

experience, our global partner network

and unique software platform,

CostPerform has become the leader

in cost and performance management

software. Our mission? To empower

people to solve the most complex cost

and performance questions.

When we discovered that none of the products

we used could resolve the questions our

clients had, we decided to develop our own

software. CostPerform was born, and over two

decades, it has evolved into what we think is

the ultimate expression of our abilities in cost

and performance management, both in terms

of experience and knowledge. Now, over 450

organizations and 600 consultants spread

across 45 countries use our software, making

CostPerform the leader in the field and the

professional’s choice foranswering the most

complex questions.

Through our world-class software platform

and our professional global partner network,

we provide the training, coaching and support

needed to help organizations get the most out of

CostPerform - and their business performance.

Read on and discover what CostPerform can do

for your organization.

Meet the professional’s choice

It’s our mission to empower people to solve the

most complex cost and performance questions.

CostPerform is flexible and easy to use.

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The most comprehensive cost management software

platform

It’s intuitive and easy to use

CostPerform offers multiple cost accounting

and allocation methods, various smart calcula-

tion functions and several analysis and simu-

lation tools. Dashboarding and whiteboarding,

a report generator, ETL (Extract Transfer and

Load), and API (Application Program Interface)

are also part of the software platform. Thanks

to a multitude of possibilities, it can answer any

cost related question.

Working with CostPerform doesn’t require any

IT knowledge. And because it’s so intuitive and

easy to use, we guarantee that you will be able

to quickly start finding the solutions to your

most complex cost and performance issues.

Why chooseCostPerform?

It’s the professional’s choice

It offers the best value for money

More than 450 organizations across the globe

- ranging from the US Government to large

telecom companies - use our software to report to

regulators and to improve their performance. And

thanks to our excellent reputation, firms like KPMG,

Deloitte, PWC, Ernst & Young, Grant Thornton,

and our network of other dedicated partners not

only endorse CostPerform but provide support and

consulting services as well.

Compared to similar software platforms,

CostPerform’s total cost of ownership is

considerably lower, making it the best value for

money.

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Complex issues, challenging calculations, and

outdated and unclear cost management software

causes today’s organizations sleepless nights. For

instance: how do you find out what the exact cost

of producing and distributing microchips is? Or

how much it costs to keep an aircraft carrier in a

state of readiness? With ordinary software, you

won’t find the correct answers to those questions,

but with CostPerform’s extraordinary software

platform, you will.

Here’s how. Simply put, the cost structure of most

organizations consists of four layers. From top to bottom

they are: costs, resources, activities, and products and/or

services. CostPerform’s software allows you to visualize

those layers and use them as building blocks to represent

the current or future cost structure of your organization.

When you’ve created the structure, you can assign

‘objects’ (as we call them), to each block. For instance,

a hospital has objects such as salaries and depreciation

costs, nurses and MRI’s as resources, heart surgery and

blood transfusions as activities and by-pass operations

and hip replacements as products. Once the objects are

established, the next step is to find the cause-and-effect

relationships between the objects and to record and

visualize them into a cost model. This model gives you

detailed - and thus extremely valuable - insights into

the often very complex cost and capacity flows of your

organization. With those insights, you can find answers

to any cost and performance question, resulting in the

knowledge of where to make adjustments to improve

business performance.

Current and future insights But CostPerform doesn’t stop there. Besides being fully

customizable to your organizations’ needs, our software

is also capable of creating future cost performance

scenarios with intelligent simulations, giving you more

valuable insights. For instance, when considering whether

to introduce a new product or service, you might ask:

how will this affect costs, workloads and your profits?

CostPerform delivers the answers.

Software designed by cost management experts

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A microchip manufacturer has a $500

million budget to produce 10 million

chips. At years-end, bookkeeping

signals a budget overrun of 20%: the

actual costs were $600 million but they

produced 11 million chips. As a CFO, you

can just accept this and find someone or

something to blame. A more professional

approach would be to use CostPerform to

do a standard variance analysis. With the

help of working standards (batch sizes,

time to produce, recipes et cetera), the

manufacturer can calculate its allowed

costs (which could even be higher than

$600 million) for the 11 million chips

produced. And thanks to recorded

data on time spent and material

used, he can better identify the root

cause of the 20% overrun, resulting in

(positive and negative) price, volume,

occupation and efficiency results. A

CFO can use this detailed performance

information to improve profit, rather

than blaming people for overrunning

budget and doing nothing about it.

The power of CostPerform: a practical example

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What makes CostPerform a world-class software platform?

It serves as your cost allocation method...

In a transparent way...

CostPerform is designed to serve as your

cost allocation method. Thanks to the unique

software design with layers, objects, attributes

and assignments in combination with smart and

proven calculation algorithms, it can handle any

cost method. Plus: CostPerform enables you to

improve your current and future cost allocation

methods. In other words, it grows on you, and

with you.

We’ve ‘rescued’ many of our clients from using

spaghetti spreadsheets or - even worse - overpriced,

non-transparent and so-called black box allocation

tools. With CostPerform, transparency is guaranteed

thanks to the graphical object navigator, drill-

down and roll-up analyser, whiteboarding and the

report generator, making CostPerform ideal for:

communication with stakeholders, improving the cost

awareness of non-financial colleagues, and convincing

regulators of the compliance of your allocations.

Using state-of-the-art algorithms…

With affordable impact

Conditional cost distribution, formula based

dynamic referencing and multi-dimensional

allocation of costs to high transaction volumes

are just a few of CostPerform’s many state-of-

the-art algorithms, illustrating the intelligence

of our software. And thanks to our dedication to

the continuous improvement of our algorithms,

CostPerform gets smarter with every release.

If you consider CostPerform as one of your missing

business assets - giving you the power to turn rough

data into intelligent and actionable information

- it makes your investment absolutely worth it.

CostPerform has one of the highest impact-to-cost

ratios in the world, a short payback period and a

substantial yearly return on investment. In absolute

terms, clients and partners regard us as highly

effective and very affordable, which is exactly why

professionals love CostPerform.

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CostPerform methods & templates

As mentioned before, one of CostPerform’s

unique features is that it is designed and built

to serve any cost allocation method.

However, this doesn’t mean you have to create your

own methods from scratch: CostPerform also comes

with predefined methods and templates that are

commonly used in your sector or industry. This is not

only the easiest way to start your cost management

initiatives but also the best way to benefit from our

extensive experience in the specific domain.

Common cross-industry cost allocation methodsNearly all of our clients use the predefined

methods and templates as a base for their own

custom methods. Since 2001, we’ve gathered

those client-specific methods and organized

them in families of costing methods to inspire

and provide future customers with the best cost

management knowledge. Here are the most

commonly used, cross-industry cost allocation

methods:

Note: when working with a predefined method or template, you can still alter and tune it to your requirements.

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Every organization has activities that can

be identified, measured and thus improved

for better business performance. Using

time-per-activity standards as a cost

driver to products is not only an obvious

method but also one that opens up the

way to variance analysis and process

improvement detection. Making activities

more efficient and effective has a direct

impact on unit costs and profits.

Capacity Management via CostPerform

is all about giving you exclusive insights

into the way your company’s capacities

(workforce, machines, space, IT et cetera)

are being deployed, to answer questions

like ‘where’s your unused capacity?’

and ‘where’s your capacity bottleneck in

your delivery process?’. The best way to

improve the cost performance of your

business is by focusing on all relevant

capacities. Not only does a better-

managed capacity lower costs directly by

constantly removing bottlenecks, it also

improves customer experience because of

better service, a shorter time to market

and faster delivery.

Time-driven Activity- Based Costing

Capacity Management

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Multi-dimensional Costing (MDC) is one of today’s

most advanced and precise costing methods. This

is how it works: by precisely allocating costs

to dimensions like ‘Customer’, ‘Country’, ‘Sales

channel’, ‘Client group’ and ‘Product’ and then

allocating the costs of each dimension to the sales

transactions, you end up with a significantly more

precise cost allocation and better insights into the

true costs and profitability of the combinations of

all your dimensions.

For example, everybody can imagine that product X,

produced and sold locally is cheaper than the same

product sold 10.000 miles away from the factory. But

even on your local market a similar trend can be seen:

the same product X, sold to a low-volume high-demand

client A can be more expensive than when you sell it to

reliable, returning client B. This is because your biggest

client B always orders in time, never changes the order

and has no complaints, meaning that his ‘handling’

costs are lower than the small and difficult clients.

Multi-dimensional cost & profitability

Multi-dimensional Costing opens up a lot of

interesting insights into the true costs and

profitability of your company’s outputs and more

and gives more precise ‘handles’ to improve

performance. Needless to say, if you combine

the methods above into one model, you have the

ultimate and highest impact cost management

model in the world. In our experience, reaching

this level of cost management requires time,

the right company culture and mentality and,

most importantly, the right data collections.

CostPerform won’t stop you from heading

this direction in the field of professional cost

management: we will follow you closely on your

journey to perfection.

The ultimate cost management model

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CostPerform Industry templates

Based on our extensive and broad

experience, we not only supply various

methodologies but also provide industry-

specific template models for clients to

increase the effectiveness and efficiency

during implementation and operational

usage of the cost models.

Technology Business Management (TBM) for IT companies Most organizations struggle with the way the

growing cost of technology (IT) is being managed.

With the introduction of TBM, business and

technology leaders now have a common model (or

language) to jointly manage IT spending for both

running and growing a business. TBM provides

a framework for understanding the relationships

between the primary processes of the business

and the level of IT spending. In many industries,

we see that IT becomes the primary process of the

company and needs to be managed as such.

Our TBM template offers you a TBM compliant

cost model. Loaded in CostPerform, it provides

the essential financial and operational tooling

to implement the TBM framework within your

organization. For example, the TBM framework can

be implemented in such a way that you will also be

able to manage all your cloud suppliers according

to their detailed billings.

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processes and increases the

cost to serve. Our cost-to-serve

template model offers a solid,

rich and detailed multidimensional

cost model and is perfectly suited

to manage the cost-to-serve in a

professional and beneficial way.

Other methods and templatesPlease contact us if your required

cost allocation method and/or

industry is not described here.

CostPerform can handle any

method and industry, and for most

situations we can provide specific

example methods and templates

that best fit your needs. Just ask!

and Utilities template models can

help you cope with the complex

demands and transparency needs

in an efficient and effective way.

Cost-to-serve for logistics companiesEvery year, consumers buy more

goods via the Internet, making

logistics companies the most

important link in the supply chain.

Today, most webshops facing

thin margins on their goods can

only be profitable if their ‘cost

to serve’ is as low as possible.

Although ‘same-day delivery’ has

a competitive advantage, it also

puts high pressure on the logistic

Regulatory reporting for telecom and utility companies Regulators can be very strict and

demanding when it comes to cost-

allocation reports. Telecom and

other utility companies have to

comply with these requirements or

face very high penalties.

Regulators can ask for complex

and sophisticated allocation

methods like LRIC (Long Run

Incremental Costs) for telecom

companies. No matter how

complex the demands are,

transparency in allocation is the

most critical factor. Our Telecom

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Worldwide at home

Thanks to more than 20 years of experience and

a vast amount of know-how, CostPerform can

help you improve your performance - regardless

of the field in which you operate. Today we’re

active in the following markets:

Government Financial Institutions Government agencies in the US, UK, the

Netherlands, all government agencies in

Dubai and more than 200 other organizations

worldwide use CostPerform for TBM and

cost-price calculations to determine price lists,

ensure funding and for other purposes.

From insurance companies and merchant banks

to central banks: CostPerform is used by more

than 25 financial institutions to determine

profitability, report to regulators and to

simulate future business models.

Telecom Manufacturing and Logistics

Healthcare IT Services (TBM)

Our clients (40 and counting) in these markets

use CostPerform for operational cost and

capacity management, variance analysis,

contract management, cost-to-serve

and other purposes.

In the early days of CostPerform, our software

platform was in high demand in the hospital

sector. Building on that base we now serve

customers throughout every area in the

healthcare sector.

With the increasing popularity of TBM, our

number of IT clients (15) is growing fast,

both in the private and government sector.

CostPerform is their product of choice to

run IT as a business.

Thanks to our ability to handle the extreme

complexity of network costing, LRIC (Long Run

Incremental Costs) and other telecom-specific

challenges, CostPerform has become the current

market leader in telecom costing. Today, more

than 20 telecom companies use CostPerform for

regulatory and business economic purposes.

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Case: TBM at the Small Business Administration

How do we enable all agencies to adopt a TBM strategy by 2022?

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TBM at the Small Business Administration (SBA)The Office of Management and

Budget (OMB) is encouraging

agencies to adopt Technology

Business Management (TBM)

strategies by 2022. While some

agencies are just beginning to

take tentative steps to initiate

TBM projects, the Small Business

Administration (SBA) is a shining

example of one agency further

along in its implementation and

sustainment journey.

The SBA TBM program began two years

ago, primarily to address the OMB

directive to adopt TBM as the standard

taxonomy and reporting structure for

Capital Planning and Investment Control

(CPIC). However, the Chief Information

Officer (CIO) and Chief Financial Officer

(CFO) quickly recognized that TBM

implementation also provided important

opportunities beyond mere compliance.

TBM offered the SBA an ability to

enhance the transparency of the

agency’s IT spending, gain visibility

into the demand from customers

and the cost to serve them, and

ultimately optimize the level of

enterprise IT spending to support

key mission goals and objectives.

The SBA selected CostPerform

as its TBM solution and utilized

an activity-based costing (ABC)

approach to provide program offices

and support functions the capability

to perform cost management,

analysis, and reporting.

The TBM implementation team

benefited from the strong

sponsorship of both Maria Roat,

SBA’s CIO and program champion,

and Tim Gribben, SBA’s former CFO.

These executive leaders worked

diligently to inform other key SBA

stakeholders about the value and

benefits of TBM, ensuring this

project’s success. Both share the

vision of “running IT like a business”;

gaining insights to differentiate

what it costs to “run” versus

“change” the SBA business.

To attain the vision, the TBM

implementation team designed

and deployed a CostPerform

solution that connects plan,

budget, and actual data across

the TBM taxonomy. But the

SBA is not only looking at

the past or present, they

specifically want to extend

the TBM outcomes to the

future state of the business.

Using forecasting methods

to determine expected future

performance and cost is

a desired and achievable

outcome. The flexibility of

CostPerform allows the SBA to

incorporate mission goals and

expand its models beyond TBM

baselines.

“CostPerform allows us to comply with OMB directives, and gives us the flexibility and information we need to optimize IT spending across the agency.”

Maria Roat, SBA’s CIO and program champion15

CostPerform short success stories

Better transparency

Save weeks of IT resources

One of our telecom customers

claims they avoided a $1.000.000

fine from the regulator because

CostPerform did what it

promised: deliver the required

report on time with better

transparency than before.

A European bank saves 3 weeks

of valuable IT resources every

quarter compared to their old

(black box) allocation tool,

because now the controllers can

run their own cost models with

CostPerform in just 2 hours.

First to report costs

Complete cost of readiness

Predict upcoming invoices

A European bank-insurer

claimed they are the first to

report costs to regulators for

IFRS, GAAP and Solvency,

using one cost model only.

CostPerform’s model was

their best choice for it.

One of our biggest clients

in the US stated that, with

CostPerform, it was the first

time in history that they could

show the US Congress the

complete cost of readiness of

their services.

A logistics company used

CostPerform to predict the

upcoming invoices from their

suppliers and found errors in the

invoices, saving large amounts of

money that exceeded the cost of

CostPerform many times.

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CostPerform Global Partner Network

Some of our top partners

Through our professional global partner

network, we provide the training,

coaching and support to help you get

the most out of CostPerform and your

business performance.

Our certified partners can help you with the

software implementation and provide you with

industry-specific knowledge and CostPerform

templates to give you a head-start on your

cost management initiatives. Furthermore, our

partners also have the experience and skills

to realize the most significant performance

improvements, discovered with the help of

our software platform.

Join our networkAre you as enthusiastic about CostPerform

as we are? Then join our global partner

network! Contact us via becomepartner@

costperform.com for more information on

the possibilities.

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www.costperform.com

Contact CostPerform

Tel USA: +1 410 385 5325

Mail USA: infousa@costperform.com

Tel NL: +31 (0) 347 355 023

Mail NL: info@costperform.com