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> If the 15-member team is adding value alongside the maintenance, that will surely be showing up as increased ARR. No, and this I think is the root of my poin
by boopboopbadoop 5y ago
> If the 15-member team is adding value alongside the maintenance, that will surely be showing up as increased ARR.
No, and this I think is the root of my point. Anything not producing AAR yet (e.g. developing a new product) has no impact on your AAR, but adds headcount, thus skewing any insight AAR/FTE would give.
- mavelikara 5y agoThis point, I believe, is implied in the article. The trend of ARR/FTE is what the author recommends measuring as a metric.
- boopboopbadoop 5y ago> So, one of the few reasons to ask for the startup headcount is to compare to its revenue and quickly evaluate its soundness. This line lead me to believe otherwise. I agree the trend is more valuable, but still has issues (e.g. months- or years-long projects will have no value until they are released)