Slow decision-making is costing U.S. companies millions in lost revenue each year, according to a new report from business and technology consulting firm West Monroe. The "Speed Wins" study finds that organizations lose up to 5% of annual revenue because of delays in decisions and execution, a hidden cost the firm has termed the "Slowness Tax."
Why it matters: The financial impact stems from missed market opportunities, stalled initiatives, and slower responses to customer needs and competitive pressures. The findings suggest that even with increased AI adoption, internal friction and decision-making bottlenecks are preventing companies from moving faster.
By the numbers: The "Speed Wins" report is based on a survey of over 1,200 leaders, including 214 C-suite executives and 1,000 managers, at U.S. companies with at least $250 million in annual revenue.
- Nearly 3 in 4 leaders believe their organization could operate at least 50% faster.
- 85% of leaders say their organization missed key opportunities over the past year due to an inability to act quickly.
- 80% of leaders identify internal friction as a primary contributor to the "Slowness Tax."
What they're saying: "The pace of business is accelerating, but most operating models haven't kept up," said Bret Greenstein, Chief AI Officer at West Monroe. "Organizations are investing heavily in AI to move faster, but speed doesn't come from technology alone. It comes from removing friction from processes and between people... Without that foundation, AI makes individuals faster—but it doesn't make the organization faster."
The Speed Wins research can be viewed here.
SOURCE: West Monroe
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