M/HQ Group · Stage 2 · Appendix B

Savings model

How the savings are sized, why they are tiered, and the point that matters most: even the most conservative case pays for the programme in its first year.

1The method: a four-factor waterfall

Savings are built up one workflow at a time, from the team's own numbers. Each workflow's annual saving is the product of four factors:

annual saving = loaded team cost × time share × addressable share × capture rate
FactorWhat it means
Loaded team costThe team's fully loaded cost: payroll plus on-costs (end-of-service, visas, insurance, ticket) and bonus, so savings are measured on real cost, not base salary alone.
Time shareThe portion of that team's time the workflow actually consumes.
Addressable shareThe portion of that time the technology can realistically touch (for example, the data-entry element of an accounting mandate, not the judgement element).
Capture rateHow much of the addressable time is actually freed. This is the factor the tiers below vary, and it is held conservative.

2The seven workflows

The model sizes seven workflows where Stage 1 evidenced the load. Judgement work (tax opinions, audit conclusions) is excluded: it stays with the professional.

  • Monthly accounting
  • Annual accounting
  • Regulatory commercial onboarding
  • ADGM authorisations
  • Board minutes
  • Internal compliance onboarding
  • Group close

3Tiered four ways

The same model is run at four capture levels, so a reader can see how firm each number is instead of taking one blended figure on trust:

TierWhat it assumes
Devil's advocateThe floor: every capture rate halved.
CautiousConservative capture across the workflows.
ExpectedThe realistic central case.
Best caseCapture at the top of the credible range.

The tier totals sit in the savings workbook alongside the one-time and ongoing costs, so the return can be read at whichever level of caution you prefer.

The full model

The complete calculation lives in an Excel workbook: every workflow, every input and capture rate, and the tier totals alongside the one-time and ongoing costs. It has been shared separately, and the latest version is available on request.

4The floor

Why the floor matters

Even the Devil's advocate tier, with every capture rate halved, frees enough to cover the one-time programme cost inside the first year. The case does not rest on the optimistic tiers being right; if only the floor materialises, the programme still pays for itself, and everything above it is upside.

5What is still an estimate

Three things to keep in mind:

  • The baselines come from division-head interviews in Stage 1, treated as observed rather than independently audited.
  • They are re-measured against a real time study at the WS0 kickoff, and the model re-cuts against those measurements.
  • Capture rates are held conservative until proven in use; the tiers are there so no single assumption carries the case.
CrossVal · ConfidentialAppendix B · Savings model · M/HQ Group