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๐ Calculation Formulas
๐ผ Productivity Gains Block 1
Productivity gains = aรbร(dโc)รe
a=Active entities ยท b=Admin hrs/entity/yr ยท c=Current automation% ยท d=Target automation% ยท e=Labor cost/hr
Value of time saved when staff can automate entity maintenance through workflows and shared data, reducing manual processes.
Current result โ
๐ข Entity Rationalization Block 2
Entity rationalization = aรfรg
a=Active entities ยท f=Carrying cost/entity ยท g=Entities retired within 12 months%
Value of dissolving unnecessary entities by eliminating ongoing compliance, audit, and filing costs. Better visibility enables faster, more confident rationalization decisions.
Current result โ
๐ฐ External Spend Reduction Block 3
External spend reduction = hรi
h=Total outsourced entity spend ยท i=Spend reduction with LEM%
Direct savings from reducing reliance on external legal providers for entity filings, documentation, and compliance work that can be automated or insourced.
Current result โ
๐ฏ Total & ROI Final
Total annual benefit = (Productivity gains + Entity rationalization + External spend reduction) ร Conservative factor%
Year 1 ROI = (Total โ (License + Services)) รท (License + Services) ร 100
Hours saved per year = aรbร(dโc)
Year 1 ROI includes one-off implementation costs. Conservative factor reduces all benefit estimates to reflect uncertainty.
Total annual benefit โ