Cost Hub

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Cost Hub

A Cost Hub is the cost centre to which we charge the cost of our operations and strategy. In orgamatics we do not allot costs to an organogram (organisational structure). Instead we cost the project-, process-, and relationship- constructs of Org. We execute a strategy through programmes and projects. That is our project construct. We implement our operations through systems and processes. That is our process construct. We manage relationships through meaningful interaction. That is our relationship construct. In orgtology we must define a cost hub within these boundaries. E.g., we could create a strategic cost hub that will show the cost of our programmes and projects, or an operational cost hub that will show the cost of our systems and processes, or a stakeholder cost hub that will show the cost of our relationships. There are several ways in which we can create cost hubs within the boundaries of the three constructs of Org. We grasp the cost of a hub by giving it a weight, which we show as either an absolute cost weight, a group cost weight, or a single cost weight. A role structure (organogram) is accountable to the three constructs of Org, and it will extract its budget from there.

 

Author - Derek Hendrikz
Hits - 113
Synonyms: Cost Centre; CH


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