writing · cost & organization · 2025

All companies need a DOGE

Incremental cost reductions are not enough

Led by Elon, Department of Government Efficiency (DOGE) is a temporary US Government Organization that focuses on cutting wasteful spending and modernizing government.

DOGE reported significant cost savings introducing Spend Control, Organizational Optimization and Deregulation Efforts to the US Government. Savings so far are estimated to 170 bn to May 11th.

Estimated Savings
$170B
Combination of asset sales, contract/lease cancellations and renegotiations, fraud and improper payment deletion, grant cancellations, interest savings, programmatic changes, regulatory savings, and workforce reductions.

It can classify DOGE actions in main categories and subcategories with some examples:

doge actions — categories, savings and examples
Main CategorySubcategoryDescriptionSavings ($ bn)Specific Examples
Spend Control Goods and ServicesTerminated 10,248 federal contracts32.0
  • Terminated 120 contracts with ceiling of $3.1 bn
  • Cancelled HR IT program, 780% over budget
  • Terminated multiple Department of the Interior contracts
Real EstateTerminated 563 leases0.3
  • Terminated National Park Service lease in Charles Town, WV
  • Consolidated Washington, D.C. offices
  • Terminated GSA lease in Washington, D.C.
GrantsTerminated 12,256 grants39.0
  • Terminated USAID grants to GAVI Foundation
  • Terminated NEH grants for merit-based causes
  • Terminated DoL DEI grants
Operational CostsImplemented cost-saving measuresTBD
  • De-activated 500,000 credit cards
  • Terminated unused software licenses
  • Reduced unnecessary travel
Organizational Optimization Workforce ReductionsReduced federal workforceTBD
  • Offered 75,000 employee buyouts
  • Eliminated 55,000 positions
  • Reduced IRS staff by 40%
Process ImprovementsModernized government processesTBD
  • Implemented OPM digital transformation
  • Streamlined CMS Navigator program
  • Migrated SSA COBOL systems
Department ClosuresClosed or reduced federal departmentsTBD
  • Shut down USAID, absorbed by State Department
  • Reduced Department of Education operations
  • Scaled back CFPB
Deregulation Efforts Repealed burdensome regulations28.7
  • Repealed energy efficiency standards for appliances
  • Streamlined natural gas export permitting
  • Simplified electricity transmission regulations

Also it organized in small cells and seems to follow a specific methodology.

the methodology, in five steps
StepNameShort Description
1Identify InefficienciesReview federal spending and operations to pinpoint waste and redundancies.
2Terminate Unnecessary AgreementsCancel non-essential contracts, grants, and leases based on inefficiencies.
3Repeal Burdensome RegulationsEliminate outdated or restrictive regulations to reduce compliance costs.
4Optimize Workforce and TechnologyImplement workforce reductions and modernize processes with technology upgrades.
5Report TransparentlyDocument actions and outcomes publicly for accountability.

The US Government but also all companies were built on decisions taken over the years like geological layers.

Companies relies on a standard rule of X% savings target over years, well aligned to a yearly budget process.

But is this enough today?

With current disruption environment, with hyper-accelerating technology and continuous disruptions, seems not to be the case.

What is differential in the DOGE methodology compared to the standard procurement cost savings and organizational restructuring processes?

doge methodology vs. standard corporate practice
StepNameDOGE MethodologyStandard Corporate PracticeDifferential (DOGE)
1Identify InefficienciesCentralized, data-driven review across all departments.Budget-driven with incremental focus.Centralized analytics
2Terminate Unnecessary AgreementsMass termination of contracts, grants, leases.Prioritizing continuity.Mass termination
3Repeal Burdensome RegulationsRapid repeal using executive authority.Bureaucratic compliance.Regulation repeal
4Optimize Workforce and TechnologyRapid, cross-department workforce and tech optimization.Gradual workforce growth; slow tech adoption.Rapid optimization
5Report TransparentlyPublic, real-time dashboard reporting.Limited internal reporting; periodic disclosures.Real-time transparency

DOGE methodology seems an opportunity especially for companies playing in markets being under disruption.

Any corporation will be brave enough to implement DOGE?

First published on Substack, May 2025.

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