The cross-sell adds revenue. The margin assumes reuse that isn't ready.
Fictional demonstration—not a diagnosis of Big Leap's operations.
1The owner question
Should we approve the Cedar Peak expansion delivery plan as estimated?
2What each team sees
Sales
$72,000 fees, $36,000 contribution — a strong cross-sell.
Delivery
Pages need redevelopment; launch coordination is unassigned.
Finance
Recurring delivery cost matches the statement of work.
Each team's report looks fine. Connecting them changes the decision.
3Connect the evidence
4What does not reconcile
- RECORDAsset register shows pages need redevelopment; setup estimate is $12,000.
- INFERENCEThe sales estimate omits setup and coordination, so contribution is overstated.
- SCENARIOIf redesign removes $9,000 of contractor cost, contribution improves by $7,000.
A difference between systems is not necessarily an error.
5Financial bridge
Agency contribution · 90 days
Sales contribution
− Missing setup
− Missing coordination
= Reconciled contribution
- SCENARIOReconciled baseline: $72,000 − $36,000 − $12,000 setup − $6,000 coordination = $18,000
- SCENARIOValidate reuse & redesign delivery: $72,000 − $36,000 − $6,000 − $3,000 − $2,000 validation = $25,000
- SCENARIOReductions do not materialize: $18,000 − $2,000 validation = $16,000
Agency revenue
$72,000
Fees, not contribution
Sales estimate
$36,000
Omits setup and coordination
6Compare decisions
Verify before acting
Advantage vs baseline: $7,000 · Setup reduction + coordination reduction must exceed $2,000 validation cost (now $9,000).
Supported only if the reductions are removable incremental contractor or vendor spend.
7Why we might be wrong
INFERENCEThese costs are already included in a central allowance.
- Evidence strength
- Direct records for setup; coordination link is inferred.
- Execution dependencies
- Contractor availability for redesign.
- Financial sensitivity
- Each $1,000 of reduction moves contribution $1,000.
- Client or contractual approval
- No client approval needed; internal plan change.
- Timing uncertainty
- Within the 90-day launch window.
8Next action
- Recommendation
- Validate reuse and assign shared costs before approving the delivery plan.
- Accountable role
- Delivery Director
- Verification needed
- Reconcile the work breakdown against the central allowance and confirm the contractor quotes.
- Reversal trigger
- A reconciled work breakdown proves setup and coordination were already included.
- Excluded benefits
- Released salaried hours are capacity, not cash savings.
- Fixed corporate overhead is excluded.
- No future upsell is assumed.
