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The Cost of Getting It Wrong

CRO Impact Simulator

Adjust parameters to model the 24-month revenue impact of a great hire vs. a mis-hire. The gap is almost always larger than founders expect.

Company ARR Baseline
ARR gap at month 24
Total mis-hire cost
Great hire ending ARR
Valuation gap (5x ARR)
Great Hire — Deal Parameters
Ramp-up (months)
Avg deal size
Lead-to-close rate
Annual churn
Mis-hire — Deal Parameters
Ramp-up (months)
Avg deal size
Lead-to-close rate
Annual churn
ARR trajectory — month by month
Great hire
Baseline (50% growth)
Mis-hire
Mis-hire cost breakdown
ItemCost

Severance 0.5x OTE, recruiting 33% OTE, onboarding 10% OTE. Opportunity cost = ARR gap vs baseline (50% growth). Churn uplift = incremental ARR lost to elevated churn over 24 months.

Valuation destruction by ARR multiple

Enterprise value destroyed vs. great hire outcome at common SaaS revenue multiples applied to the 24-month ARR gap.