How much of your company's resources are devoted to managing its information versus producing and delivering goods and services?

I have devised a model called the Information Management Multiplier (IMM) to identify the scope of information activities at a company.

To start, take sales, general and administrative costs, as reported on financial statements. I exclude research and development because it is usually outside a CIO's oversight.

Next, take the net cost of operations, which is total operating costs minus the worth of all outsourced work.

The ratio of information management to net cost of operations then becomes the IMM, which reveals how much information management costs exceed (or don't exceed) the direct costs of production and services.

To see the details behind this calculator and fill in your own estimates, click on the "Get the Tool" icon above and download the interactive worksheet.