Company Culture Is Costing You Millions Every Year

So here's a calculator.

Let's assume we've got a $50 million company, you know, 10 leaders, 20 managers, 70 contributors, and we're Annual compensations here and fully loaded costs.

And, you know, here's the multiplier.

And if you go look at the drivers, we've got priority thrash, rework, decision, quality, context switching, and percentage workforce impacted.

So there's a percentage.

And then just hours per week, loss per impacted person.

Not a whole

lot, right? No.

But just this in itself, $1.7 million.

That's the impact of these few hours on these items, $1.7 million.

Then we throw in the driver of turnover, revenue impact, initiative waste, a value to say a 12% turnover.

There's another $1.1 million.

So your total tax on a $50 million company is $2.8 million.

So if I have a 20% reduction, In all these items.

Yeah.

I can get a dividend of $566,000.

Wow.

Which means in about three months, I cover my tax.

Okay.

Yeah.

And what I've identified is here's my biggest area, my terminal attrition.

So where should I focus my time and my effort initially? Right.

I should focus right here.

Why are people leaving? And then I can look at my decision latency.

That's my next cost.

So here's a calculator.

Let's assume we've got a $50 million company, you know, 10 leaders, 20 managers, 70 contributors, and we're Annual compensations here and fully loaded costs.

And, you know, here's the multiplier.

And if you go look at the drivers, we've got priority thrash, rework, decision, quality, context switching, and percentage workforce impacted.

So there's a percentage.

And then just hours per week, loss per impacted person.

Not a whole

lot, right? No.

But just this in itself, $1.7 million.

That's the impact of these few hours on these items, $1.7 million.

Then we throw in the driver of turnover, revenue impact, initiative waste, a value to say a 12% turnover.

There's another $1.1 million.

So your total tax on a $50 million company is $2.8 million.

So if I have a 20% reduction, In all these items.

Yeah.

I can get a dividend of $566,000.

Wow.

Which means in about three months, I cover my tax.

Okay.

Yeah.

And what I've identified is here's my biggest area, my terminal attrition.

So where should I focus my time and my effort initially? Right.

I should focus right here.

Why are people leaving? And then I can look at my decision latency.

That's my next cost.