What is the problem actually costing you?

A few honest numbers usually tell a clearer story than a gut feeling. Takes about 2 minutes.

Section A

Firefighting time

Staff regularly firefightingYou can add multiple values, e.g. 70000 + 50000 + 15000% of time firefightingYou can add multiple values, e.g. 70000 + 50000 + 15000Avg fully-loaded salary £You can add multiple values, e.g. 70000 + 50000 + 15000

Workings

5 staff × 40% × £70,000 = £140,000/year

Section B

Client churn

Avg annual client value £You can add multiple values, e.g. 70000 + 50000 + 15000Clients lost per yearYou can add multiple values, e.g. 70000 + 50000 + 15000

Workings

3 clients × £20,000 = £60,000/year

Section C

Lost referrals

Referrals lost per yearYou can add multiple values, e.g. 70000 + 50000 + 15000Avg new client value £You can add multiple values, e.g. 70000 + 50000 + 15000

Directional estimate, not precise.

Workings

2 referrals × £20,000 = £40,000/year

Section D

Failed projects (one-off)

Cost of failed project(s) £You can add multiple values, e.g. 70000 + 50000 + 15000

Workings

Historical one-off cost = £25,000 (not in annual total)

Section E

Additional costs

Errors and rework £/yearYou can add multiple values, e.g. 70000 + 50000 + 15000Departures per year (burnout)You can add multiple values, e.g. 70000 + 50000 + 15000Avg salary of departing staff £You can add multiple values, e.g. 70000 + 50000 + 15000Replacement cost as % of salaryYou can add multiple values, e.g. 70000 + 50000 + 15000Leadership hours/week firefightingYou can add multiple values, e.g. 70000 + 50000 + 15000Avg leadership hourly rate £You can add multiple values, e.g. 70000 + 50000 + 15000SLA / contractual penalties £/yearYou can add multiple values, e.g. 70000 + 50000 + 15000Wasted tooling spend £/yearYou can add multiple values, e.g. 70000 + 50000 + 15000

Workings

Errors and rework = £10,000

1 departures × £55,000 × 75% = £41,250

5 hrs/week × 52 × £150 = £39,000

SLA penalties = £0

Wasted tooling = £8,000

Additional costs total = £98,250/year

Results

What it adds up to

Total annual cost of the problem

£338,250

Historical one-off cost (failed projects)

£25,000

If this number is bigger than you expected, that's usually the point where it's worth talking to someone.

Orin fixes operational processes once they're costing real money, reputation, or trust. If you want to talk through what's actually going on, book a short call.

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