THE ECONOMICS OF INVESTIGATING

Put $125K against the problem.

A recurring execution problem can consume millions before anyone isolates why it keeps happening.

Estimate the annual economic impact, see its potential exposure over the remaining hold period, and compare it with the cost of finding the cause.

Include rework, margin erosion, avoidable spend, delayed revenue, scope changes, operating inefficiency, or another measurable consequence of the problem.

Type any amount, including values above $25M.

Remaining hold period

The estimate assumes annual economic impact remains constant throughout the selected hold period.

$2.0M annual impact × 4 years remaining in the hold

IF THE ECONOMICS REMAIN UNCHANGED

$8.0M

Potential economic exposure over the remaining hold period

ECONOMIC EXPOSURE

$8.0M

Exposure over 4 years

EXECUTION DIAGNOSTIC

$125K

Single fee

64 : 1

Estimated exposure relative to diagnostic cost

At this problem size, the diagnostic represents 1.6% of estimated exposure through the hold.

$8.0M

Potential exposure through hold

Estimated annual impact across 4 years, if unchanged, with recurring costs accumulating throughout the remaining hold period.

1.6%

Recovery required

The diagnostic covers its fee if you prevent or recover 1.6% of estimated exposure.

23 days

Time to consume another $125K

At this annual impact, the problem consumes another $125,000 approximately every 23 days.

IF THE PROBLEM CONTINUES

  1. TODAY

    $0

  2. YEAR 1

    $2.0M

  3. YEAR 2

    $4.0M

  4. YEAR 3

    $6.0M

  5. HOLD EXIT · YEAR 4

    $8.0M

$125K to investigate a problem representing an estimated $8.0M of economic exposure.

The diagnostic needs to influence just 1.6% of this amount to equal its cost.

The economics are only the beginning.

The calculation estimates the financial weight of the problem.

The Execution Diagnostic investigates why the problem persists, where it affects the economics, and what needs to change.

How the Math Works

Potential Exposure

$8.0M

Annual economic impact × remaining hold years.

Recovery Required

1.6%

$125,000 ÷ potential exposure × 100.

Cost of Waiting

22.8 days

($125,000 × 365) ÷ annual economic impact.

Assumptions: Annual impact remains constant. Hold-period exposure assumes no growth, discounting, or recovery. Cost of waiting distributes annual impact evenly across 365 days.

About this estimate

This tool provides an illustrative estimate using your figures. Results do not guarantee savings, EBITDA improvement, or investment returns. Actual economic impact depends on the underlying issue, implementation, timing, and operating conditions.

Rework, attrition, scope changes and execution friction can compound across teams, projects and contracts. See what the financial impact could look like at your scale.