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Equation #20 · Chapter 9
Self-Funding Coefficient S_fc
Self-Funding Coefficient
S_fc · Ch 9(Human cost − AI cost) ÷ pilot cost. Above 10 the CFO is negligent not to buy.
Worked example — Three contractors and an invoice queue
Most of their week goes on invoice matching — about $600K a year fully loaded. The automated version costs $120K a year to run. A pilot that proves it costs $60K.
It came out at 8.0. Green — well past the 2.5 line where it pays for itself.
Below 1 you are asking the CFO for a favour. Above 2.5 you are pointing at arithmetic. If you're sitting at 0.8, don't sharpen the deck — go back to the person with the problem and widen the use case until the numerator moves.
Your turn — change one number
Result8.00
Green. Pays for itself. Pitch the CFO.