2.1 We evaluated the Department's approach to identifying and assessing cost reduction measures to assess whether it had:
• set out a clear target operating model - a vision for how the business will work in the future so that it can deliver its objectives at a sustainable lower cost;
• clear objectives for the spending review and used these to prioritise cost reduction measures;
• a strong understanding of the current and likely future cost and value of activities; and
• identified sustainable cost reductions.
We reviewed the process the Department used to put together its spending review bid and examined in detail a sample of 15 of the Department's budgets. These budgets make up 73 per cent of departmental spending between 2011-12 and 2014-15 and cover all major areas of the Department, including small programmes. There are more details of our sampling criteria and approach in our methodology (Appendix One and online).