Calculator Settings
Investment Costs
Business Function Total Cost (Internal and External)
Internal Personnel Costs
External Costs
Total Business Function Cost Summary
Instructions
Internal Personnel Costs
- Enter the standard working hours per year for each full-time employee (FTE)
- Specify the number of internal staff members involved
- Input the average fully-loaded cost per FTE (including salary, benefits, and overhead)
External Costs
- Enter total annual spend on external resources
- Specify the average hourly rate for external resources
- Include all vendor, consulting, and outsourced service costs
Why This Matters
Understanding your current business function costs provides the baseline for calculating potential savings and ROI from technology investments.
Technology & Implementation Investment Cost
Instructions
Technology Costs
- Enter the annual cost for software licenses
- Specify expected yearly price increases (typically 4-5%)
- Include any additional modules or user licenses needed
Implementation & Support
- Include one-time setup and configuration costs
- Account for data migration and integration expenses
- Add annual maintenance and support fees
- Consider training and change management costs
Investment Timeline
First-year costs include one-time implementation expenses plus annual recurring costs. Subsequent years only include recurring costs with potential price increases.
Expected Benefits
Efficiency Savings
Instructions
How to Calculate
- Identify manual tasks that can be automated
- Estimate hours saved per week per person
- Value is auto-calculated based on effective hourly rate
- Consider both direct time savings and improved accuracy
Common Examples
- Document automation and assembly
- Workflow automation
- Data entry and processing
- Review and approval processes
Pro Tips
Start with easily measurable tasks and be conservative in your estimates. Focus on high-volume, repetitive work first.
Risk Reduction
Instructions
How to Calculate
- Review historical compliance incidents and their costs
- Estimate potential fines and penalties avoided
- Consider reputation damage prevention
- Include potential litigation cost reduction
Risk Areas to Consider
- Regulatory compliance
- Contract risks
- Data security and privacy
- Operational errors
Pro Tips
Base estimates on actual historical incidents or industry benchmarks. Consider both direct costs and indirect impacts.
Revenue Generation
Instructions
How to Calculate
- Identify new revenue opportunities
- Estimate increased capacity for billable work
- Calculate value of faster deal closure
- Consider improved client satisfaction impact
Revenue Sources
- Additional matters/deals handled
- New service offerings
- Increased client retention
- Higher-value work capacity
Pro Tips
Focus on quantifiable revenue opportunities. Use historical data and market analysis to support estimates.
External Cost Savings
Instructions
How to Calculate
- Review current external spend categories
- Estimate realistic reduction percentages
- Consider vendor consolidation opportunities
- Account for improved resource utilization
Savings Areas
- Outside counsel optimization
- Vendor management
- Contract negotiations
- Service provider consolidation
Pro Tips
Start with easily achievable savings targets. Consider both immediate and long-term optimization opportunities.