Savings that have a direct impact on an organization's bottom line are called...

Hard savings are defined as savings that have a direct and measurable impact on an organization's financial performance. These savings reflect tangible cost reductions that can be quantified and reported in financial statements, typically leading to an increase in profits or a decrease in expenses. For instance, if a project leads to lower operational costs or reduced waste, these benefits translate directly into cash savings for the organization.

In contrast, other types of savings such as soft savings might involve cost avoidance or improvements in efficiency that do not have an immediate effect on cash flow or profitability. Transactional savings refer to the efficiencies gained at the transactional level, while net savings can be a broader term that may include both hard and soft savings but is not specifically focused on direct financial impact.

Thus, hard savings stand out because they are fully realized in the organization’s financial statements and can be tracked with precision, making them a critical focus for organizations seeking to enhance financial performance through continuous improvement initiatives.