Welcome to Decision Desk, where important decisions don't disappear.
The Approval Lag Calculator:
Measuring the Invisible Tax on Revenue
Approval Lag is the time elapsed between a request for a decision and its formal resolution. In high-growth companies, this is the single most expensive hidden cost in the P&L.
When a deal sits in a Slack thread waiting for a VP’s "thumbs up," it isn't just standing still—it is decaying. Every hour of lag increases the "Deal Fatigue" for the prospect and reduces the quarterly capacity of your sales team.
Calculate Your Revenue Leakage
To get an immediate assessment of your team's decision velocity, use the logic below:
Your Data
Average Deal Size $_________
Monthly Deal Volume_________
Current Approval Lag (Days)_________
Annual Revenue at Risk$_________
The Formula: (Monthly Volume × Deal Size) × (Approval Days / 30) = Monthly Revenue Latency.
The Three Stages of Approval Lag
To manage velocity, you must first categorize it. Most teams operate in the "Danger Zone" without realizing that a 24-hour shift in response time could add 10% to their bottom line.
1. The High-Velocity Zone (< 4 Hours)
Decisions are made within the same half-day cycle. Documentation is automated. Friction is near zero.
Outcome: Deals move through the pipeline at the speed of the buyer, not the internal bureaucracy.
2. The Friction Zone (4–24 Hours)
Decisions are made "eventually." The requester often has to "bump" the thread to get eyes on the request.
Outcome: Context is lost, and the "why" behind the decision is rarely recorded.
3. The Danger Zone (24+ Hours)
The "Decision Debt" begins to compound. By the time the approval is granted, the original context is stale, and the buyer's urgency has cooled.
Outcome: Significant revenue leakage and "Invisible Debt" that slows down the entire organization.
Why Standard Tools Fail to Fix Lag
Most teams try to solve this with more Slack channels or more "Urgent" tags. This fails for three reasons:
Fragmentation: The request is in Slack, the data is in Salesforce and the contract is in DocuSign. No one has the full picture.
Notification Fatigue: Managers miss the one critical "Yes" amidst 100 "FYIs."
The Memory Tax: Without a central record, the team spends more time asking "Did this get approved?" than actually closing the deal.
How to Reduce Lag by 80% Immediately
The fix is not more meetings; it is Systemic Resolution.
Move to Async-First: Stop waiting for "sync" meetings to get a signature.
Standardize the Request: Every approval request must include the "Price, Term, and Trade-off" in a single block.
Automate the Ledger: Use a tool like Decision Desk to turn a Slack reaction into a permanent, searchable record.
Frequently asked questions
How do you calculate the cost of approval lag?
The cost is calculated as Monthly Revenue Latency using the formula: (Monthly Volume x Average Deal Size) x (Days of Approval Lag / 30). This represents the capital sitting idle due to internal friction.
What is a healthy benchmark for approval times?
High-velocity teams aim for under 4 hours. Standard healthy teams resolve requests within 4-24 hours. Anything over 24 hours is considered the 'Danger Zone' where deal fatigue and revenue leakage begin to compound.
Why is Slack approval lag so hard to track?
Slack is built for conversation, not record-keeping. Without a dedicated tool like Decision Desk, timestamps for 'request' and 'resolution' are buried in threads, making it impossible to audit bottlenecks without manual effort.
How can reducing approval lag increase my win rate?
Speed is a signal of operational excellence to the buyer. Reducing lag keeps momentum high during the most critical phase of the deal, preventing competitors from entering the conversation during a period of silence.
Progress moves at the speed of decisions.
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