The Disconnect and Opportunity Analysis
Principle Three. Be realistic in the savings estimates; the steering team and ultimately the executive team should add the appropriate safety buffer to the numbers, observing the doctrine of “underpromise and overdeliver”. Conservative realism is normal; gross sandbagging is not helpful at this point.
Principle Four. Document all assumptions behind the savings estimates. This is the most important principle; any pushback by the steering team typically has more to do with the assumptions than the numbers.
Principle Five. Identify validation resources than can objectively test or spar with the number and assumptions, before the estimates are shared with the steering team. There are two kinds of value than result from this effort: change management and content. The validation team accomplishes both, given others the opportunity to participate and feel ownership while making the content more accurate.