Estimate the Cost of the Performance Leak
Now that you have reviewed the six Performance Levers, estimate the financial cost of the performance issue you selected.
This is not meant to be a perfect accounting calculation. It is a conservative directional estimate that helps leaders see whether the issue is big enough to deserve focused attention.
Watch the Performance Leakage Lesson
This lesson explains how to estimate lost time, rework, delay, avoidable effort, or capacity drain without overstating the case.
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Read the lesson transcript
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This section should explain that the estimate is directional. Participants should use reasonable assumptions, stay conservative, and avoid pretending the number is more precise than the data allows.
Before You Complete This Estimate
Use the same performance challenge you selected at the start. Estimate the cost of the issue as it currently shows up in time, effort, rework, delay, or lost productivity.
- Use conservative numbers you would be comfortable explaining to a leader.
- Estimate time lost per affected employee per week, not total frustration.
- Use hourly compensation if you know it. Use annual salary if that is easier.
- Choose the data quality level honestly. Rough estimates are acceptable as long as they are labeled that way.
The goal is not to create a perfect financial model. The goal is to make the hidden cost visible enough that the pattern can be discussed seriously.
Complete the Performance Leakage Estimate
Enter your best conservative estimate. The calculator will generate a directional range and save it to your Executive Brief record.