ROI Calculator Methodology

Understanding the value of perfect strategy execution alignment

Our Approach to ROI Calculation

Stratafy's ROI calculator is built on extensive research into strategy execution gaps and their impact on organizational performance. We use a comprehensive model that considers both direct financial impacts and indirect benefits of improved alignment.

Key Assumptions

  • Industry average execution gap: 38%
  • Misaligned time in organizations: ~30%
  • Implementation timeline: 2-3 months
  • Full benefit realization: 6-12 months

Improvement Ranges

  • Strategy execution: 15-25%
  • Time efficiency: 10-20%
  • Productivity: 5-15%
  • Meeting effectiveness: 10-20%
  • Market responsiveness: 20-40%
  • Employee retention: 5-15%

ROI Components

Strategy Execution Improvement

Based on your current execution gap, we calculate potential improvements of 15-25%. Organizations with larger gaps (>45%) can achieve higher improvements as there's more room for optimization.

Formula: Initiative Value × Improvement Rate (15-25%)
Example: For a $1M initiative with 45% gap: $1M × 25% = $250,000 improvement

Time Efficiency Gains

We analyze time spent on misaligned activities (typically 30% of leadership time) and calculate efficiency improvements of 10-20% based on your execution gap.

Formula: Annual Executive Comp × Misaligned Time % × Efficiency Improvement
Example: For $200/hr CEO: ($200 × 2080 hrs) × 30% × 20% = $24,960 saved

Employee Productivity Enhancement

Similar to time efficiency, but applied to team productivity. Improvements range from 5-15% of misaligned time based on current gap.

Formula: Team Annual Comp × Misaligned Time % × Productivity Improvement
Example: 50 employees at $75/hr: ($75 × 2080 × 50) × 30% × 15% = $351,000

Meeting Waste Reduction

Calculates savings from reduced meeting time (10-20% improvement) by analyzing current meeting hours and average hourly costs.

Formula: Annual Meeting Hours × Avg Hourly Cost × Reduction Rate
Example: 1000 hrs × $100 avg rate × 20% = $20,000 saved

Pivot Response Value

Quantifies the value of faster market responses (20-40% improvement) based on identified opportunities and their likelihood.

Formula: Opportunity Value × Likelihood × Speed Advantage
Example: $500K opportunity × 30% likelihood × 40% = $60,000

Employee Retention Impact

Calculates savings from reduced turnover (5-15% improvement) based on current turnover rate and replacement costs.

Formula: Replacement Cost × Turnover Rate × Employees × Reduction
Example: $45K cost × 15% rate × 50 employees × 15% = $50,625 saved

Investment Breakdown

Annual Subscription

Core platform access with all features

$4,188

Implementation Support

One-time setup and onboarding assistance

$2,500

Leadership Time

Estimated time for strategy alignment sessions

3 hrs/month

Team Time

Per team member for alignment activities

15 min/week/member

Try the Calculator

Use our interactive calculator below to see your potential ROI based on your organization's specific parameters.

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