Decision Value Model

What it costs you to decide the way you decide today.

Time spent in meetings, analyses redone, weeks lost before converging: these are real costs that appear in no budget. Enter your numbers, see how much they weigh today, and how much of it Tal4Biz can give back.

Your company
People's time
The analyses
The delay
8

How much sooner you would have decided with a shared picture in front of everyone from the start.

How the total is made up

Four line items for every strategic decision, plus the external analyses repurchased every year. No hidden estimates: below is the exact formula running in the calculator.

Meeting time

The hours of everyone sitting at the table, plus the time needed to prepare each meeting.

meetings ร— participants ร— duration ร— hourly cost ร— (1 + preparation)

Analysis and reconciliation

The person-days spent gathering data from different systems, aligning it, and building the dossier.

person-days ร— daily cost

The delay

Every week the initiative doesn't start is a week of its annual value you don't collect.

avoidable weeks ร— (annual value รท 52)

The communication

The hours spent explaining the decision, collecting late objections, and realigning whoever has to execute it.

hours ร— hourly cost
Note. This tool doesn't measure: it models. The default values are orders of magnitude for a company with โ‚ฌ100 million in revenue. The number you get is only as good as your two most sensitive assumptions โ€” how many strategic decisions you actually make in a year, and how many weeks of the cycle would be avoidable. These are the first two things we verify together, if you'd like to go deeper with us.

Sources

Public sources give us the order of magnitude of the model's ingredients. We reviewed research from the European Commission's Joint Research Centre, the study on executive time use published in the Journal of Political Economy, Eurostat statistics, ENISA findings, industry surveys on software spend, and management literature. The processing and estimates were carried out by Tal4Biz to synthesize and facilitate the calculation of the decision cost impact.

  1. Weekly hours spent in meetings grew from about 10 in the 1960s to 23 in 2017; roughly half of meetings are judged unproductive. Basis for the number and duration of meetings in the model.
  2. Research on 1,114 CEOs in six countries. The average CEO works about 50 hours a week and spends 70% of it on interactive activities. Basis for the hourly cost of managerial time. Published in the Journal of Political Economy.
  3. Only 43% of organizations have full visibility into their IT spend; 35% report that waste on subscription software has increased. Basis for the "repurchased external analyses" line item.
  4. Preston G. Smith & Donald G. Reinertsen โ€” Developing Products in Half the Time
    The cost of delay method: monetizing delay by dividing the initiative's expected annual value by the weeks in a year. This is the formula behind the "delay" line item.
About the sources. Every figure shown on this page traces back to a source named above: the data is reported in summary form, with attribution and a link to the original, and no chart, table, or text has been reproduced. The entities cited have no relationship with Tal4Biz, and the citation does not constitute or imply their endorsement.
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