STEP 2. COST OUT THE LIST
This involves determining how much it will cost to carry out the activities listed
in Step 1. Obviously, there are some basic costs that have to be covered just
to keep the organization going. There are the facility expenses, core staff
salaries, and expenses related to the basic programs that were established in the
past and which are still needed. Each of these programs and activities must be
carefully evaluated for cost and impact so that rational decisions can be made
about the continuation of such programs. In addition, the expenses and impact
associated with new activities must also be evaluated.