Companies as hierarchical equations
Personally, I think of companies as hierarchical equations where inputs at one level are outputs of the next.— Rob Dearborn (@RobDearborn) February 19, 2022
E.g., for a subscription co:
– Revenue = Users * LTV
– LTV = Conversion * Retention * ARPPU
– Retention = D1 * W1 * M1 …
Eventually you get to ownable metrics.