The global skills and competency framework for the digital world

Cost management COMG

Planning, controlling and analysing costs to enable the effective use of financial resources.

Revision notes

Updates for SFIA 9

  • This is a new skill introduced in SFIA 9.
  • Theme(s) influencing the updates for this new skill: Application of SFIA skills for finance and FinOps.
  • Previous SFIA assessments or skills mapping of other SFIA skills may be impacted by this new skill. Provide specialised finance skills - e.g. Financial management

Guidance notes

Activities may include, but are not limited to:

  • developing and implementing cost management strategies, policies and procedures
  • analysing costs, identifying trends, and recommending corrective actions
  • conducting cost-benefit analyses and supporting stakeholder collaboration in the cost management process
  • overseeing the development of complex cost models and reporting frameworks
  • presenting cost management insights to stakeholders and facilitating data-driven decision-making
  • promoting a culture of cost awareness and ongoing improvement throughout the organisation
  • implementing cost management processes and tools to support cloud computing and FinOps in areas such as consumption-based pricing, rapid scalability, and real-time cost visibility and optimisation.

Understanding the responsibility levels of this skill

Where lower levels are not defined...
  • Specific tasks and responsibilities are not defined because the skill requires a higher level of autonomy, influence, and complexity in decision-making than is typically expected at these levels. You can use the essence statements to understand the generic responsibilities associated with these levels.
Where higher levels are not defined...
  • Responsibilities and accountabilities are not defined because these higher levels involve strategic leadership and broader organisational influence that goes beyond the scope of this specific skill. See the essence statements.

Developing skills and demonstrating responsibilities related to this skill

The defined levels show the incremental progression in skills and responsibilities.

Where lower levels are not defined...

You can develop your knowledge and support others who do have responsibility in this area by:

  • Learning key concepts and principles related to this skill and its impact on your role
  • Performing related skills (see the related SFIA skills)
  • Supporting others who are performing higher level tasks and activities
Where higher levels are not defined...
  • You can progress by developing related skills which are better suited to higher levels of organisational leadership.

Show/hide extra descriptions and levels.

Levels of responsibility for this skill

2 3 4 5 6

Cost management: Level 2

Level 2 - Assist: Essence of the level: Provides assistance to others, works under routine supervision, and uses their discretion to address routine problems. Actively learns through training and on-the-job experiences.

Assists in gathering cost data and preparing basic cost reports under supervision.

Supports the cost management process by completing assigned tasks and seeking guidance when needed.

Cost management: Level 3

Level 3 - Apply: Essence of the level: Performs varied tasks, sometimes complex and non-routine, using standard methods and procedures. Works under general direction, exercises discretion, and manages own work within deadlines. Proactively enhances skills and impact in the workplace.

Applies standard cost management techniques and processes to monitor and report on costs within a specific area of responsibility.

Identifies and escalates cost variances and supports the implementation of cost-saving initiatives. Collaborates with stakeholders to gather cost data and provide reports.

Cost management: Level 4

Level 4 - Enable: Essence of the level: Performs diverse complex activities, supports and guides others, delegates tasks when appropriate, works autonomously under general direction, and contributes expertise to deliver team objectives.

Develops and implements cost management processes and procedures for a department or function.

Monitors actual performance against budget and identifies variances.

Analyses costs, identifies trends and recommends corrective actions.

Provides guidance and advice on cost management techniques and tools.

Cost management: Level 5

Level 5 - Ensure, advise: Essence of the level: Provides authoritative guidance in their field and works under broad direction. Accountable for delivering significant work outcomes, from analysis through execution to evaluation.

Leads the development and implementation of cost management strategies, policies and procedures for a significant area of the organisation.

Provides authoritative advice and guidance on cost optimisation techniques and recognised good practices. Oversees the development of complex cost models and reporting frameworks.

Presents cost management insights to senior stakeholders and facilitates data-driven decision-making. Promotes a culture of cost consciousness and continuous improvement.

Cost management: Level 6

Level 6 - Initiate, influence: Essence of the level: Has significant organisational influence, makes high-level decisions, shapes policies, demonstrates leadership, promotes organisational collaboration, and accepts accountability in key areas.

Defines and leads the organisation's overall approach to cost management, aligning it with strategic objectives and financial goals.

Develops and implements enterprise-wide cost management policies, standards and processes. Collaborates with senior leaders to identify and drive cost optimisation initiatives.

Provides strategic insights and recommendations to optimise cost performance and drive long-term value creation. Sets the vision and direction for cost management across the organisation.

Keywords
New skill