The New Economy

The Missing Accounting Entry That's Costing You 2-6% of Revenue Every Year

For 530 years, double-entry bookkeeping has been the gold standard of economic measurement. It records every transaction with millimetric precision. But it has a blind spot-a blind spot that hides between €100,000 and €300,000 of annual waste in a €5M company, and hundreds of millions in a multinational.

That blind spot has a name: the Cost of Relational Quality (CRQ).

Drawing on 30+ years of professional experience, Giovanni Walter Amendala introduces the first systematic, measurable framework for quantifying what traditional accounting cannot see:

• C₁ - The Cost of Conflict (unproductive meetings, unresolved tensions)

• C₂ - The Cost of Turnover (avoidable departures, lost tacit knowledge)

• C₃ - The Cost of Non-Collaboration (rework, silos, penalties)

• C₄ - The Cost of Presenteeism (people present but cognitively absent)

Using real anonymised case studies-Precision Manufacturing Ltd (€5.2M SME) and Global Pharma Corp (€8B multinational)-the book demonstrates that CRQ averages 2-6% of annual revenue in every organisation, regardless of size or sector.

• Why Maslow's hierarchy of needs is the hidden driver of P&L performance

• How to calculate your organisation's CRQ in seven working days using data you already have

• The seven relational KPIs (PSI, OVI, ETI, SAI, CFCI, OEII, CRQ) that anticipate financial deterioration 2-3 quarters in advance

• How Activity-Based Costing (ABC) becomes the bridge to measuring relational waste

• A 90-day operational roadmap with rituals that change culture through habits, not proclamations

• The definitive mathematical proof that reducing CRQ from 9.7% to 4.2% doubles EBIT margin

• CFOs and Financial Controllers - discover what your P&L is hiding

• CEOs and Business Owners - learn why respect for people is not ethics but efficiency

• HR Directors - finally quantify the ROI of psychological safety and culture

• Board Members - understand the leading indicators that predict financial performance

• Management Consultants - add a rigorously measurable framework to your toolkit

This is not a book about "soft skills" or "being nice." It is a book about hard accounting, measurable ROI, and the economic proof that human dignity drives profit. Every claim is supported by IFRS/IAS references, validated psychometric tools (Edmondson's Psychological Safety Index), and real-world data.

Access CRQ calculators, survey templates, and KPI dashboards via the link inside.

"The most important management accounting book since Kaplan and Cooper's Activity-Based Costing"

Who should read this immediately:

CFOs who suspect their P&L is absorbing costs without explanation. CEOs of SMEs who cannot afford to lose 7-10% of revenue to invisible waste. HR leaders tired of being told "you can't measure culture." Board members who need leading indicators, not lagging ones.

Bottom line: If you ignore the CRQ, you are leaving 2-10% of your revenue on the table. Amendola has shown you how to pick it up.