🔎Assess Before You Invest💵

No matter the industry, taking an open-minded and diagnostic lens to any problem has always been the most effective approach to solving a challenge. In the medical field, its about running tests to ensure accurate diagnoses are shared; in the mechanical or technical realms -- troubleshooting is used to identify and solve problems; or the marketing industry theorizes and then utilizes AB testing to determine the best results. This is no different with the world of organizations and the challenges they face, despite their industry.

What does the word "assess" mean?

"To determine the value, significance, or extent of; appraise"

This word comes from the Anglo-French usage, and ultimately derived from the Latin verb assidēre, meaning "to sit as a judge."

There are multiple instances in an organization where members of the organization are in a situation to make a key decision, but do not always have the full picture of data or information to do so, such as when:

• A leader must hypothesize why their team in not performing at its potential.

• An executive receives information about the organization's ineffectiveness and implements the solution.

• A hiring manager has to choose between a few candidates.

• A manager is looking to grow their career and get promoted but is not sure how.

• An HR director is sifting through multiple options for learning and development training and is not sure which will be most impactful.

• The executive team is interest in implementing a large organizational transformation and are unsure of the organization's readiness.

Therefore, the action of "assessing" has a great impact when all levels of the organization instill it as a key action before decision making and more importantly, investing.

Let's look at some actual numbers to get an idea of the true ROI when we do or don't "assess before we invest" :

📊 Cost Comparisons

1. Training Needs Assessment vs. Paying for the Wrong Trainings

• Without Needs Assessment:

  • Cost of average training program per employee: $1,200 (ATD Benchmark).

  • If 50 employees attend irrelevant training = $60,000 wasted (no performance gain).

    
    

• With Training Needs Assessment:

  • TNA project cost: $15,000–$25,000 (depending on scope).

  • Savings: Prevents misaligned training spend, ensures ROI.

    
    

👉 Investing once in a needs assessment saves 2–4x the cost of random training programs.

2. Consulting Solution That Does Not Fix the Problem

• Wrong Consulting Solution:

  • Average consulting engagement = $50,000–$250,000.

  • If problem persists → cost doubles (repeat consulting, lost time, morale).

    
    

• Right Consulting Solution (diagnosis first):

  • Diagnostic phase cost = $20,000–$40,000.

  • Leads to targeted solution → savings of hundreds of thousands in wasted spend.

    
    

👉 Skipping diagnosis = paying twice: once for the wrong fix, and again for the right one.

3. Career Growth Assessments vs. Retention Costs

• No Career Assessments:

  • Replacing an employee costs 1.5–2x salary (Gallup).

  • For mid-level roles ($80k salary), turnover = $120k–$160k each.

    
    

• With Career Growth Assessments:

  • Assessment & coaching package = $1,000–$3,000 per employee.

  • 10x cheaper than turnover.

    
    

👉 Investing in assessments retains talent and prevents expensive exits.

4. Leadership Hypotheses vs. Organizational Diagnosis

• Leader Hypothesizes:

  • Trial-and-error solutions cost months of lost productivity.

  • Estimated cost of poor performance = $1,500 per employee/month (Gallup engagement data).

    
    

• Proper Diagnosis:

  • Organizational assessment cost = $30k–$60k.

  • Prevents 6–12 months of wasted time across a team → savings in hundreds of thousands.

    
    

5. Executive Implements Solution vs. Data-Driven Fix

• Generic Solution:

  • Example: $100k+ training or tech initiative.

  • Without diagnosing, likelihood of failure is 70% (McKinsey).

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• Data-Driven Solution:

  • Initial org effectiveness assessment = $25k.

  • Targeted fix → 2–3x ROI.

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👉 Information before action prevents million-dollar mistakes.

6. Wrong Candidate Hire vs. Pre-Hire Assessments

• Bad Hire:

  • Cost = 30%–200% of salary. For $70k role, $21k–$140k.

    
    

• Assessment Use:

  • $100–$200 per candidate.

  • Prevents even one mis-hire = pays for itself 10–50x over.

    
    

💡 Example: If you assess 100 candidates at $100/test, that’s $10,000 total.

7. Manager Wants Promotion but Lacks Clarity

• No Assessment/Development Plan:

  • Stagnation → disengagement → turnover risk (~$100k replacement).

    
    

• With Career/Leadership Assessment:

  • $1,000–$3,000 coaching/assessment investment.

  • Retention + improved performance → 30–40% ROI.

    
    

8. HR Director Struggles with L&D Options

• No Diagnostics:

  • Wasted training spend = $50k–$100k annually (programs not tied to outcomes).

    
    

• With Diagnostics:

  • Needs assessment cost = $15k–$25k.

  • Ensures alignment → prevents misaligned spend.

    
    

9. Organizational Transformation Without Readiness Check

• No Readiness Assessment:

  • 70% of transformations fail (McKinsey).

  • Failed transformation = millions lost (avg. initiative: $1–5M).

    
    

• With Readiness Assessment:

  • Cost: $50k–$100k.

  • Success likelihood doubles.

    
    

👉 A $50k assessment protects a $5M investment.

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✅ Pattern to Highlight:

Every scenario shows that diagnosis + assessment = small upfront investment that prevents massive downstream costs (anywhere from 5x to 100x ROI).

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If your organization is not "assessing before they invest" and looking for predictive assessments that help leaders, teams, or organization move forward with confidence and clarity. Set up a call with us to find out more.

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