FLAIR
  1. Foundation
  2. Leverage
  3. Activation
  4. Iteration
  5. Realisation
ROI CalculatorChapter 5

ROI Calculator

The Matrix tells you what to build. The ROI Calculator tells you whether it is worth building.

Annual value = time saved per use × frequency × team size × loaded hourly cost × honest adoption likelihood.

Conservative

Frequency is how often the work happens. Team size is how many people save the time each time it does.

What proportion of the team will actually use the assistant in the way the calculator assumes, twelve months after launch. The conservative scenario defaults to 0.3, and a specific argument is required to go above 0.5.

Model usage, tooling, the hours the owners spend in Iteration Reviews, and the platform time that keeps the assistant alive. It is never zero.

Results appear once the build cost and the run cost are entered.

Ambitious

Frequency is how often the work happens. Team size is how many people save the time each time it does.

What proportion of the team will actually use the assistant in the way the calculator assumes, twelve months after launch. The conservative scenario defaults to 0.3, and a specific argument is required to go above 0.5.

Model usage, tooling, the hours the owners spend in Iteration Reviews, and the platform time that keeps the assistant alive. It is never zero.

Results appear once the build cost and the run cost are entered.

Decide on the conservative scenario.

A value without a cost is not a return.

Time saved is not time recovered. Measure reabsorption once the assistant is live.

Marlow's numbers