A method of improving the computation speed of the sum of absolute transformed distances (SATD) for different intra-prediction modes is described. Determining the SATD quicker provides the benefits of better coding performance without suffering the drawbacks of longer computation times. The method of reducing intra-prediction and mode decision processes in a video encoder, implements Hadamard transforms with improvements. Hadamard transforms are performed on an original block and predicted blocks and calculations are only performed where coefficients are non-zero thus skipping the coefficients that are zero. Using such an approach, the calculations required for the Vertical Prediction, Horizontal Prediction and DC Prediction are reduced significantly. Thus, the best intra-prediction mode is able to be determined very efficiently.