Controllable spend - Revision history

Designing Buildings at 08:00, 24 December 2021

2021-12-24T08:00:20Z

← Older revision		Revision as of 08:00, 24 December 2021
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	= Controllable spend and public entities =		= Controllable spend and public entities =

−	When associated with public entities (such as local ~~governments~~), controllable spend may refer to procurement activities outside long-term contractual arrangements. In some instances it may also refer to spend that is required but can be modified.	+	When associated with public entities (such as local government), controllable spend may refer to procurement activities outside long-term contractual arrangements. In some instances it may also refer to spend that is required but can be modified.

−	These adjustments may present an opportunity for procurement departments to add value and reduce costs, but they sometimes fall under parameters that have been dictated by ~~HM Revenue and Customs~~ restrictions. Controllable spend may be seen as a viable area when economic conditions - such as a financial downturn - prompt the Government to require public entities to make ~~significant~~ budgetary adjustments.	+	These adjustments may present an opportunity for procurement departments to add value and reduce costs, but they sometimes fall under parameters that have been dictated by central government restrictions. Controllable spend may be seen as a viable area for reductions when economic conditions - such as a financial downturn - prompt the Government to require public entities to make budgetary adjustments.

	One specific type of controllable spend for public entities is a measure defined under Department Expenditure Limits (DEL). DELs are controllable spends for departments relating to budgets that are usually set for three years in advance in a spending review.		One specific type of controllable spend for public entities is a measure defined under Department Expenditure Limits (DEL). DELs are controllable spends for departments relating to budgets that are usually set for three years in advance in a spending review.
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	= Similar terms =		= Similar terms =

−	Controllable spend is ~~not the same as spend controls. These are parameters that apply when organisations seek to spend money on a digital or technology service.~~	+	Controllable spend is not the same as spend control (which is sometimes referred to as spend management or expense management). This generic term describes how procurement and finance teams can evaluate expenses and effectively incorporate them into forecasts and budgets.
−		+
−	~~Controllable spend is also~~ not the same as spend control (which is sometimes referred to as spend management or expense management). This generic term describes how procurement and finance teams can evaluate expenses and effectively incorporate them into forecasts and budgets.	+

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 07:57, 24 December 2021

2021-12-24T07:57:29Z

← Older revision		Revision as of 07:57, 24 December 2021
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	= Introduction =		= Introduction =

−	Controllable spend ~~is a term used~~ to ~~describe~~ costs that can be adjusted based on a ~~public organisation’s~~ actions or ~~private organisation's~~ business decisions.	+	Controllable spend refers to costs that can be adjusted based on a actions or business decisions.

	= Controllable spend and private business =		= Controllable spend and private business =
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	Controllable spend measures may be directed at short-term or one-off measures. This may be tied to reductions in funding allocated for what might be deemed non-essential items including travel, bonuses, professional development fees and materials and so on.		Controllable spend measures may be directed at short-term or one-off measures. This may be tied to reductions in funding allocated for what might be deemed non-essential items including travel, bonuses, professional development fees and materials and so on.

−	They may also be dictated by changes in company policy regarding business efficiency and utility usage. This ~~may~~ mean adjusting temperature levels in buildings or instituting stricter measures around turning lights off in unoccupied parts of the facility - or at the end of the working day.	+	They may also be dictated by changes in company policy regarding business efficiency and utility usage. This might for example mean adjusting temperature levels in buildings or instituting stricter measures around turning lights off in unoccupied parts of the facility - or at the end of the working day.

	= Problems associated with controllable spend in private business =		= Problems associated with controllable spend in private business =

−	In private businesses, addressing controllable spend may present challenges. This is sometimes due to organisational silos created by sourcing responsibilities that are spread across multiple departments.	+	In private businesses, addressing controllable spend may present challenges. This is sometimes due to organisational silos created by sourcing responsibilities that are spread across multiple departments. In these instances, it may be difficult to share data between departments, in particular if different technical systems have been used or if information has been compiled in a non-standard manner.

−	~~In these instances, it may be difficult to share data between departments, especially if different technical systems have been used or if information has been compiled in a disparate manner.~~	+	It is important to develop a cohesive procurement process across the entire organisation. The should use the same technical platform and terminology to define procurement processes and identify potential controllable spend areas. The end result should help produce a benchmark to introduce consistent controllable spend measures throughout the organisation.
−		+
−	~~To resolve the issue, it~~ is important to develop a cohesive procurement process across the entire organisation. The ~~process will need to~~ use the same technical platform and terminology to define procurement processes and identify potential controllable spend areas. The end result should help to produce a benchmark to introduce consistent controllable spend measures throughout the organisation.	+

	= Controllable spend and public entities =		= Controllable spend and public entities =

Editor at 16:25, 23 December 2021

2021-12-23T16:25:06Z

← Older revision		Revision as of 16:25, 23 December 2021
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	* Budget for building design and construction projects.		* Budget for building design and construction projects.
		+	* Departmental Expenditure Limits DELs.
	* Long tail spend.		* Long tail spend.
	* Maverick buying.		* Maverick buying.

Editor at 10:04, 23 December 2021

2021-12-23T10:04:44Z

Editor at 16:19, 22 December 2021

2021-12-22T16:19:47Z

← Older revision		Revision as of 16:19, 22 December 2021
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	= Introduction =		= Introduction =

−	Controllable spend is a ~~general purchasing~~ term used to describe costs that can be adjusted based on an organisation’s actions or business decisions.	+	Controllable spend is a term used to describe costs that can be adjusted based on an organisation’s actions or business decisions.

	= Controllable spend and private business =		= Controllable spend and private business =

Editor at 16:17, 22 December 2021

2021-12-22T16:17:06Z

← Older revision		Revision as of 16:17, 22 December 2021
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	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

−	* Budget for building design and construction projects	+	* Budget for building design and construction projects.
−	* Indirect costs in construction	+	* Long tail spend.
−	* Long tail spend	+	* Maverick buying.
−	* Maverick buying	+	* Maverick spend.
−	* Maverick spend	+	* Public procurement.
−	* Public procurement	+
		+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]] [[Category:Public_procedures]]

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2021-12-22T16:10:41Z

Created page with "= Introduction = Controllable spend is a general purchasing term used to describe costs that can be adjusted based on an organisation’s actions or business decisions. = Contr..."

New page

= Introduction =

Controllable spend is a general purchasing term used to describe costs that can be adjusted based on an organisation’s actions or business decisions.

= Controllable spend and private business =

In private businesses, the actions associated with controllable spend are generally based on the instructions of an influential person associated with budgetary decision making powers. This can include the chief executive or chief procurement officer. Controllable spend measures can also be proposed by the finance team within the organisation.

Controllable spend measures may be directed at short-term or one-off measures. This may be tied to reductions in money allocated for non-essential items such as travel, bonuses, professional development fees and materials and so on. They may also be dictated by changes in company policy regarding business efficiency and utility usage. This may mean adjusting temperature levels to reduce energy bills or instituting stricter measures around turning lights off in unoccupied areas of the facility - or at the end of the working day.

= Problems associated with controllable spend in private business =

In private businesses, addressing controllable spend may present challenges. This is sometimes due to organisational silos created by sourcing responsibilities spread across multiple departments.

In these instances, it may be difficult to share data between departments, especially if different technical systems have been used or if information has been compiled in a disparate manner.

To resolve the issue, it is important to develop a cohesive procurement process across the entire organisation. The process will need to use the same technical platform and terminology to define procurement processes and identify potential controllable spend areas. The end result should help to produce a benchmark of controllable spend throughout the organisation.

= Controllable spend and public entities =

When associated with public entities (such as local governments), controllable spend may refer to procurement activities outside long-term contractual arrangements. In some instances it may also refer to spend that is required but can be modified.

These adjustments may present an opportunity for procurement departments to add value and reduce costs, but they sometimes fall under parameters that can be dictated by HM Revenue and Customs restrictions. Controllable spend may be seen as a viable area when economic conditions - such as a financial downturn - prompt the Government to urge public entities to make significant budgetary adjustments.

One specific type of controllable spend for public entities is a measure defined under Department Expenditure Limits (DEL). DELs are controllable spends for departments relating to budgets that are usually set for three years in advance in a spending review.

= Similar terms =

Controllable spend is not the same as spend controls. These are parameters that apply when organisations seek to spend money on a digital or technology service).

It is also not the same as spend control (also referred to as spend management or expense management). This generic term describes how procurement and finance teams can evaluate expenses and incorporate those expenses into forecasts and budgets as effectively as possible.

= Related articles on Designing Buildings =

* Budget for building design and construction projects
* Indirect costs in construction
* Long tail spend
* Maverick buying
* Maverick spend
* Public procurement

← Older revision		Revision as of 10:04, 23 December 2021
Line 1:		Line 1:
	= Introduction =		= Introduction =

−	Controllable spend is a term used to describe costs that can be adjusted based on an organisation’s actions or business decisions.	+	Controllable spend is a term used to describe costs that can be adjusted based on a public organisation’s actions or private organisation's business decisions.

	= Controllable spend and private business =		= Controllable spend and private business =

−	In private businesses, the actions associated with controllable spend ~~are generally~~ based on the instructions of an influential person associated with budgetary decision making ~~powers~~. This ~~can include~~ the chief executive or chief procurement officer. Controllable spend measures can also be proposed by the finance team within the organisation.	+	In private businesses, the actions associated with controllable spend may be based on the instructions of an influential person associated with budgetary decision making responsibilities. This may be the chief executive or chief procurement officer. Controllable spend measures can also be proposed by the finance team within the organisation.

−	Controllable spend measures may be directed at short-term or one-off measures. This may be tied to reductions in ~~money~~ allocated for non-essential items ~~such as~~ travel, bonuses, professional development fees and materials and so on. They may also be dictated by changes in company policy regarding business efficiency and utility usage. This may mean adjusting temperature levels ~~to reduce energy bills~~ or instituting stricter measures around turning lights off in unoccupied ~~areas~~ of the facility - or at the end of the working day.	+	Controllable spend measures may be directed at short-term or one-off measures. This may be tied to reductions in funding allocated for what might be deemed non-essential items including travel, bonuses, professional development fees and materials and so on.
		+
		+	They may also be dictated by changes in company policy regarding business efficiency and utility usage. This may mean adjusting temperature levels in buildings or instituting stricter measures around turning lights off in unoccupied parts of the facility - or at the end of the working day.

	= Problems associated with controllable spend in private business =		= Problems associated with controllable spend in private business =

−	In private businesses, addressing controllable spend may present challenges. This is sometimes due to organisational silos created by sourcing responsibilities spread across multiple departments.	+	In private businesses, addressing controllable spend may present challenges. This is sometimes due to organisational silos created by sourcing responsibilities that are spread across multiple departments.

	In these instances, it may be difficult to share data between departments, especially if different technical systems have been used or if information has been compiled in a disparate manner.		In these instances, it may be difficult to share data between departments, especially if different technical systems have been used or if information has been compiled in a disparate manner.

−	To resolve the issue, it is important to develop a cohesive procurement process across the entire organisation. The process will need to use the same technical platform and terminology to define procurement processes and identify potential controllable spend areas. The end result should help to produce a benchmark of controllable spend throughout the organisation.	+	To resolve the issue, it is important to develop a cohesive procurement process across the entire organisation. The process will need to use the same technical platform and terminology to define procurement processes and identify potential controllable spend areas. The end result should help to produce a benchmark to introduce consistent controllable spend measures throughout the organisation.

	= Controllable spend and public entities =		= Controllable spend and public entities =
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	When associated with public entities (such as local governments), controllable spend may refer to procurement activities outside long-term contractual arrangements. In some instances it may also refer to spend that is required but can be modified.		When associated with public entities (such as local governments), controllable spend may refer to procurement activities outside long-term contractual arrangements. In some instances it may also refer to spend that is required but can be modified.

−	These adjustments may present an opportunity for procurement departments to add value and reduce costs, but they sometimes fall under parameters that ~~can be~~ dictated by HM Revenue and Customs restrictions. Controllable spend may be seen as a viable area when economic conditions - such as a financial downturn - prompt the Government to ~~urge~~ public entities to make significant budgetary adjustments.	+	These adjustments may present an opportunity for procurement departments to add value and reduce costs, but they sometimes fall under parameters that have been dictated by HM Revenue and Customs restrictions. Controllable spend may be seen as a viable area when economic conditions - such as a financial downturn - prompt the Government to require public entities to make significant budgetary adjustments.

	One specific type of controllable spend for public entities is a measure defined under Department Expenditure Limits (DEL). DELs are controllable spends for departments relating to budgets that are usually set for three years in advance in a spending review.		One specific type of controllable spend for public entities is a measure defined under Department Expenditure Limits (DEL). DELs are controllable spends for departments relating to budgets that are usually set for three years in advance in a spending review.
Line 27:		Line 29:
	= Similar terms =		= Similar terms =

−	Controllable spend is not the same as spend controls. These are parameters that apply when organisations seek to spend money on a digital or technology service).	+	Controllable spend is not the same as spend controls. These are parameters that apply when organisations seek to spend money on a digital or technology service.

−	It is also not the same as spend control (~~also~~ referred to as spend management or expense management). This generic term describes how procurement and finance teams can evaluate expenses and incorporate ~~those expenses~~ into forecasts and budgets ~~as effectively as possible~~.	+	Controllable spend is also not the same as spend control (which is sometimes referred to as spend management or expense management). This generic term describes how procurement and finance teams can evaluate expenses and effectively incorporate them into forecasts and budgets.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =