Every number on this page comes from named institutions. PMI, McKinsey, Standish Group, Oxford University. Nothing invented. Everything citable.
| Cost Category | Annual Impact | Source |
|---|---|---|
| PM time lost to administration (60% of capacity) | $480,000 | PMI Pulse |
| Rework from incomplete requirements | $310,000 | Standish CHAOS |
| Direct project overrun costs | $400,000 | McKinsey/Oxford |
| Cascade delay — next 3 projects held back | $620,000 | 2weekAI field analysis |
| Data hygiene enforcement (800 hrs/PM/year) | $240,000 | IDC |
| Bad-data executive decisions | $180,000 | Conservative estimate |
| Total annual waste per portfolio company | $2,230,000 | Conservative 1.0x |
Conservative multiplier. The realistic figure is 1.4–1.8x. Nine additional waste categories excluded.
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| Year | Annual Waste | Cumulative |
|---|---|---|
| Year 1 | $8.2M | $8.2M |
| Year 2 | $9.1M | $17.3M |
| Year 3 | $10.4M | $27.7M |
| Year 4 | $11.8M | $39.5M |
| Year 5 | $13.2M | $52.7M |
Five-year cost of inaction: $52.7M. Five-year LeanStream deployment: $400K–$600K.
Scenario: PE firm, 8 portfolio companies, 15x EBITDA multiple
Recovering $8M annually per company × 8 companies = $64M/year
At 15x EBITDA: $64M recovery = $960M market cap impact
LeanStream deployment across 8 companies: $1.2M–$2.8M one-time
ROI: 342x to 800x on implementation investment
Average payback period after LeanStream deployment. The system pays for itself before the first major initiative completes discovery.
$103,000 — cost per month of delay for a mid-size organization.
The processes that make the acquired business work live in one person's head. Post-acquisition attrition is the single most predictable risk in any integration. When that person leaves — and they often do — the knowledge goes with them. Rebuilding it costs $40,000–$80,000 per departure and 3–6 months of lost productivity. LeanStream's SOP documentation captures every critical process before the attrition wave hits.