Methodology

Recovery Model

Transparent assumptions. Illustrative ranges.

This page explains how we estimate recoverable value in the “Calculate Your Recovery” module.

1) What we mean by “recoverable value”

Recoverable value is the annualized value currently leaking through operational friction — time loss, rework, missed follow‑ups, avoidable delays, and preventable errors — that can be reclaimed through better workflow design, instrumentation, and selective automation.

This isn’t a promise; it’s a range meant to help you decide whether the opportunity is worth a deeper audit.

2) Inputs (and what influences the estimate)

The estimator uses:

  • Annual revenue (your scale proxy)
  • Sector (light-touch adjustment for typical leakage patterns)

In real audits, the recoverable range is most influenced by:

  • Process maturity (handoffs, approvals, exception handling)
  • Tooling and data quality (systems of record, schema discipline)
  • Throughput constraints (human review bottlenecks, queueing)
  • Error rates (rework, reversals, duplicate work)

3) Why we show a range (scenarios)

Organizations vary dramatically.

So instead of one “precise” number, we show three scenarios:

  • Conservative: lower-bound improvements
  • Likely: typical leakage + maturity profile
  • Aggressive: upper-bound opportunity when friction is systemic

4) The model (Phase 1)

We compute annual recovery as:

  • Conservative = revenue × r_low
  • Likely = revenue × r_mid
  • Aggressive = revenue × r_high

Default fallback rates:

  • r_low = 3%
  • r_mid = 7%
  • r_high = 12%

Some sectors apply modest overrides to reflect common leakage patterns.

5) Sector notes (high level)

  • Commerce: leakage often shows up in fulfillment exceptions, returns, and inventory mismatch.
  • Client Services: leakage clusters around intake, scheduling, and inconsistent delivery workflows.
  • Infrastructure: leakage tends to be in planning variance, incident response, and change management churn.
  • Manufacturing: leakage is frequently downtime, scrap, and long feedback loops.
  • Agri‑Tech: leakage often comes from delayed detection and decision latency.
  • Institutional: leakage commonly appears as bureaucratic friction and collection gaps.

6) Worked example

If revenue is $5,000,000 and the likely scenario is 7%, the illustrative recovery is:

  • Likely recovery = $5,000,000 × 0.07 = $350,000 / year

7) What happens after the assessment

The assessment routes you into a short audit workflow:

  1. We identify the highest-leverage bottleneck(s)
  2. We estimate value at stake with tighter assumptions
  3. We recommend a build plan (workflow + instrumentation + automation)

8) Disclaimers

  • These are illustrative estimates — results vary.
  • We do not represent this as financial advice.
  • Any benchmark rates are used for scenario framing, not guarantees.

If you want a tighter estimate for your exact workflow, run the assessment and we’ll audit the leakage pattern.