How does 1 day equal 2 FTE?
When communicating value, we need to present the largest reasonable figures. One simple way to accomplish this is to annualize our calculations.
Let’s say that during a discovery conversation, we learn that our prospect can save 1 day each week by implementing our software. We could leave it at that, but it isn’t very compelling!
On the other hand, if we annualize our finding, it amounts to about 50 days per year. That’s much more interesting: That’s nearly a quarter of an FTE (Full Time Equivalent)!
But wait: The prospect was simply describing 1 individual on a team, and it turns out that there are 10 people all suffering the same issue. On a weekly basis this amounts to saving 10 days for the team but annualizing the calculation we find that our prospect can recover 500 days annually. That’s a lot more! (Flick your magic wand and say, “Engorgio!”)
We glance at our prospect, a middle manager, and realize that they can’t really visualize what 500 days saved can mean. We say, “500 days – that’s a bit over 2 FTEs, so that’s like freeing up 2 members of your team to focus on other, more valuable activities.” Our prospect immediately “gets it” and starts thinking about other neglected tasks that now could be addressed.
Annualizing value numbers makes the business case compelling!
Resources:
Value Numbers Need to Align with Job Title: Why?
https://greatdemo.com/value-numbers-need-to-align-with-job-title-why/
How Does 3 Minutes Equal $24 Million?
https://greatdemo.com/how-does-3-minutes-equal-24-million/
Let’s Talk About Value – Uncovering the Delta
https://greatdemo.com/lets-talk-about-value-uncovering-the-delta/
Doing Discovery:
https://www.amazon.com/Doing-Discovery-Important-Enablement-Processes/dp/B0B8RJK4C2/
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