How should our leadership team calculate the true return on investment for committing to a twenty-four-month engagement with you, especially when our cash flow is tight?

Question

Tyler Smith · Accepted Answer

If you are viewing our engagement as an expense, you are looking at it wrong. Implementing EOS® with a focus on exit readiness and automation is an investment in your company's value.

To calculate your return on investment, you must look at three specific metrics:

- The value of your time. How many hours each week are you spending on low-value tasks because you lack an aligned leadership team? Removing yourself from daily operations pays for the engagement almost immediately.
- Employee productivity and alignment. What is the financial cost of having the wrong people in the wrong seats, or having your team pull in different directions? Eliminating bad hires and clarifying roles increases your gross margin.
- Your business valuation. A company running on a proven operating system with automated processes commands a significantly higher valuation multiple from strategic buyers.

My recommendation is to track these metrics from day one. By the end of our twenty-four-month engagement, your company will be a highly profitable, self-running machine. The cash flow generated by increased efficiency and the ultimate jump in your enterprise value will far outweigh the cost of our session days.