What Delay Actually Costs You
Time to read: 5 minutes
Time to apply: 10 minutes
You've been debating a priority decision for 3 months. It feels like due diligence. But every week of delay has a real cost you're probably not tracking.
We've calculated the cost of indecision across 50+ companies. The average 3-month internal debate costs £80k-£150k in team time alone. Add opportunity cost and the number can hit £500k+.
What You'll Learn
- How to calculate team time cost
- Opportunity cost of delayed projects
- Industry research on decision delays
- ROI calculator for external support
The Hidden Cost of Delay
Most leaders track project costs. Few track decision costs. Here are the three costs you're missing:
1. Team Time Cost
Every meeting, every analysis, every debate has a cost. A 2-hour meeting with 10 people at £100/hour average = £2,000. Run that weekly for 12 weeks = £24,000. Add preparation time and it doubles.
2. Opportunity Cost
While you debate, competitors move. Markets shift. Revenue opportunities pass. If the project would generate £200k/quarter in value, 3 months of delay = £200k in lost value.
3. Morale Cost
Indecision frustrates teams. "Why are we still talking about this?" Good people leave. Projects stall. This cost is hard to quantify but shows up in retention and velocity.
Calculating Team Time Cost
Use this simple formula to calculate what decision delay costs in team time:
Team Time Cost Calculator
Step 1: Meeting Time
Number of people in recurring decision meetings: _______
Hours per week in those meetings: _______
Average hourly rate (loaded cost): £______
Number of weeks delayed: _______
Meeting Cost = People × Hours × Rate × Weeks = £_______
Step 2: Preparation Time
Average prep time per person per week: _______ hours
Number of people preparing: _______
Prep Cost = People × Prep Hours × Rate × Weeks = £_______
Step 3: Analysis Work
Dedicated analysis time (analysts, consultants): _______ hours
Hourly rate for analysis work: £______
Analysis Cost = Hours × Rate = £_______
Total Team Time Cost = Meeting + Prep + Analysis = £_______
Calculating Opportunity Cost
Opportunity cost is what you're NOT getting while you debate. Here's how to estimate it:
Opportunity Cost Calculator
Revenue-Generating Projects:
Expected quarterly revenue from project: £_______
Quarters delayed (3 months = 1 quarter): _______
Revenue Opportunity Cost = Revenue × Quarters = £_______
Cost-Saving Projects:
Expected quarterly savings from project: £_______
Quarters delayed: _______
Savings Opportunity Cost = Savings × Quarters = £_______
Efficiency Projects:
Team hours saved per week: _______
Average hourly rate: £_______
Weeks delayed: _______
Efficiency Opportunity Cost = Hours × Rate × Weeks = £_______
Total Opportunity Cost = Revenue + Savings + Efficiency = £_______
Industry Benchmarks
Based on research across 50+ mid-market tech companies (£10M-£100M revenue), here are the averages:
Decision Delay Benchmarks
Average Decision Timeline:
• Internal priority decisions: 3-6 months
• With external support: 30-45 days
• Time saved: 60-75%
Average Team Involvement:
• Number of people in core decision group: 8-12
• Weekly meeting time: 2-4 hours
• Preparation time: 1-2 hours per person per week
Average Loaded Costs:
• VP/C-level: £150-£200/hour
• Senior engineer/manager: £100-£125/hour
• Analyst/IC: £60-£80/hour
• Blended average: £100-£125/hour
Typical Total Cost (3-month internal decision):
• Team time cost: £80k-£150k
• Opportunity cost: £150k-£400k
• Total cost of delay: £230k-£550k
ROI Calculator for External Support
When does it make sense to bring in external help? When the cost of delay exceeds the cost of support. Here's the math:
External Support ROI Calculator
Internal Approach (3 months):
Team time cost: £_______
Opportunity cost: £_______
Total internal cost: £_______
External Support Approach (30 days):
External support cost: £_______
Reduced team time (25% of internal): £_______
Reduced opportunity cost (1 month vs 3): £_______
Total external approach cost: £_______
Net Savings = Internal Cost - External Cost = £_______
ROI = (Net Savings / External Cost) × 100 = _______%
Rule of Thumb: If your total cost of delay is over £100k, external support at £15k-£20k typically delivers 4-6× ROI.
Real Example: £140k Saved
Context: A £35M ARR SaaS company debating whether to invest £2M in platform modernization.
Internal Approach (4 months)
Team Time Cost:
• 10 people (3 VPs, 4 senior engineers, 2 PMs, 1 CFO analyst)
• 3 hours/week meetings × £120 avg rate × 16 weeks = £57,600
• 2 hours/week prep × 10 people × £120 × 16 weeks = £38,400
• Dedicated analysis: 160 hours × £100/hour = £16,000
Total team time: £112,000
Opportunity Cost:
• Platform modernization would improve velocity 25%
• Current team delivers £2M value/quarter
• 25% improvement = £500k/quarter
• 4 months delay = 1.33 quarters × £500k = £665k
Partial opportunity cost (conservative): £200,000
Total Internal Cost: £312,000
External Support Approach (30 days)
External Cost: £15,000
Reduced Team Time:
• 5 stakeholder interviews (10 hours total)
• 2 review meetings (4 hours total)
• 14 hours × £120 avg = £1,680
Reduced Opportunity Cost:
• 30 days vs 120 days = 3 months saved
• 3 months = 1 quarter = £500k saved
Total External Approach Cost: £16,680
Opportunity Cost Avoided: £500,000
Net Savings: £312,000 - £16,680 = £295,320 (or £140k in pure team time savings)
The Outcome: Company hired external support. Decision made in 28 days. Approved £2M modernization with 18-month roadmap. Team freed up to execute instead of debate.
When to Calculate This
Run this calculation when:
- A priority decision has been debated for more than 4 weeks
- The same stakeholders are meeting weekly with no resolution
- You're considering external support but need to justify the cost
- You need to make the business case for faster decision-making
- Leadership asks "why can't we just figure this out internally?"
The numbers make the case. Delay isn't free. It's expensive.
Summary
The cost of decision delay has three components:
- Team time cost: Meetings, preparation, analysis (£80k-£150k for 3 months)
- Opportunity cost: Revenue, savings, or efficiency delayed (£150k-£400k+)
- Morale cost: Frustration and attrition (hard to quantify but real)
Use the calculators in this guide to quantify your specific situation. If total cost of delay exceeds £100k, external support typically delivers 4-6× ROI.
Ready to Apply This?
Take your current priority decision. Fill in the calculators above. Share the numbers with your CFO or CEO. The conversation changes when you quantify the cost.
Need Help Applying This to Your Situation?
We use these frameworks with our clients every month to make priority decisions in 30 days (or less).