How your product work could move EBITDA
53, Aligning
Based on what you shared, your approach shows signs of aligning your macro strategy with your execution, but there’s room for improvement, notably with economic contribution and delivery credibility.
Modeled EBITDA improvement
Based on a Lorenz engagement, your Convergence Check score and the room to improve.
Modeled contribution by dimension
- Economic Contribution$6,615
- Strategic Coherence$3,591
- Customer & Market Alignment$4,555
- Delivery Credibility$5,950
- Operational Sustainability$4,095
- Risk & Resilience$4,905
- Outcome Learning & Adaptation$4,665
- Less Lorenz subscription−$1,000
- Annual EBITDA improvement$33,376
Assumes: 2 months × $8,000/month = $16,000 investment, plus a $1,000-a-year Lorenz subscription, with steady benefits beginning after month 2.
Your Financial Figures
- Annual revenue$10,000,000
- Annual EBITDA$2,000,000
Your Financial Figures
Fill in either one. The other is worked out from your revenue.
About your impact estimate
Research-informed scenario, not a forecast. The financial assumptions do not change your assessment score.
- We score your product work across seven dimensions, from what you shared and what you answered.
- We translate that score into two levers: revenue your product work could lift, and operating cost it could take out.
- We treat small companies differently from large ones, because the same practices move a smaller business further.
Modeled contribution by dimension
- Economic Contribution$6,615
- Strategic Coherence$3,591
- Customer & Market Alignment$4,555
- Delivery Credibility$5,950
- Operational Sustainability$4,095
- Risk & Resilience$4,905
- Outcome Learning & Adaptation$4,665
- Less Lorenz subscription−$1,000
- Annual EBITDA improvement$33,376
91% of the assessment could be judged. Only what could be judged feeds this scenario; what was not shown never increases it.
The rates behind the scenario are our modeling assumptions, informed by McKinsey's product operating model research. That research compares companies; it is not a guaranteed gain from an engagement. Read the research.
Results are annual EBITDA improvements after the subscription and before the engagement fee. Payback and year-one ROI count the fee and assume no benefit until the engagement ends. These are undiscounted estimates, not cash-flow forecasts.
Convergence Check dimensions
13of 100Risk & Resilience
Assess whether material downside is contained and the organization can recover or change direction.
Risk & Resilience
Assess whether material downside is contained and the organization can recover or change direction.
Risk visibility
Two risks are listed, without the work they affect.
your files
Residual exposure
The plan rests on one partner API with no stated limit on what its loss would cost.
inferred from your files
Controls
One risk has an owner; none has a control.
inferred from your files
Recovery and reversibility
Not shown
Modeled contribution $4,905 · 14.27% of total
28of 100Operational Sustainability
Assess whether the organization can sustain the ongoing responsibilities created by its product work.
Operational Sustainability
Assess whether the organization can sustain the ongoing responsibilities created by its product work.
Operating work visibility
A few maintenance items are on the backlog without owners.
your files
Load and capacity
Operating work is mentioned but no capacity is set aside for it.
inferred from your files
Ownership readiness
Products have owners; support and recovery paths are written for one.
inferred from your files
Burden reduction
Not shown
Modeled contribution $4,095 · 11.91% of total
53of 100Economic Contribution
Assess the value created or protected after costs, and when that value becomes available.
Economic Contribution
Assess the value created or protected after costs, and when that value becomes available.
Financial expression
Most epics carry a value and a cost range.
your files
Net contribution
The main initiatives state a return, but the cost side is partly estimated.
inferred from your files
Credibility
Value estimates cite last year’s pricing data and a sales pipeline review.
inferred from your files
Timing
When value arrives is stated for one initiative only.
inferred from your files
Modeled contribution $6,615 · 19.24% of total (revenue $2,277 · cost $4,338)
53of 100Customer & Market Alignment
Assess whether the work addresses consequential needs in the customers and markets the business intends to serve.
Customer & Market Alignment
Assess whether the work addresses consequential needs in the customers and markets the business intends to serve.
Customer inputs
Most top items link a customer record or a support ticket.
your files
Segment relevance
Target segments are named; the share of work per segment is not.
inferred from your files
Evidence of need
The main initiatives cite several customers sharing the need.
inferred from your files
Concentration
A large share of the quarter goes to work for two named customers.
inferred from your files
Modeled contribution $4,555 · 13.25% of total
61of 100Outcome Learning & Adaptation
Assess whether the organization can determine whether work helped and use the findings to change subsequent decisions.
Outcome Learning & Adaptation
Assess whether the organization can determine whether work helped and use the findings to change subsequent decisions.
Outcome expression
Most top items say what they should change beyond shipping.
your files
Outcome definition
The main initiatives have a measure, a target and a date.
your files
Measurement credibility
Data sources are named; collection has not started for all of them.
inferred from your files
Adaptation
Results are reviewed each quarter; decisions are not written down.
your answer
Modeled contribution $4,665 · 13.57% of total (revenue $1,606 · cost $3,059)
63of 100Delivery Credibility
Assess whether the organization can deliver a usable result within the required time and capacity.
Delivery Credibility
Assess whether the organization can deliver a usable result within the required time and capacity.
Delivery details
Committed items have owners, estimates and target dates.
your files
Capacity fit
120 points of capacity, 104 committed, support work included.
your answer
Dependencies and readiness
Dependencies are listed for most committed items; some are scheduled after the work that needs them.
your files
Commitment credibility
Progress is tracked; there is no record of past commitments met.
inferred from your files
Modeled contribution $5,950 · 17.31% of total
70of 100Strategic Coherence
Assess whether the allocation and sequence of product effort advance the company's chosen direction.
Strategic Coherence
Assess whether the allocation and sequence of product effort advance the company's chosen direction.
Strategic connection
Every top item names one of the three company goals.
your files
Contribution
Each goal has committed work that says how it moves the goal.
your files
Allocation
Most planned effort sits on the two highest goals.
inferred from your files
Sequencing
The order follows the goals, with a few items ranked without a stated reason.
inferred from your files
Modeled contribution $3,591 · 10.45% of total
How an engagement would start
Initial focus areas
Planning-method comparison
For larger backlogs with complex team and budget dynamics, we work through advanced optimization strategies. We run your portfolio several ways, greedy by value, goals-based from your targets, and commitment-led from what you have promised, and build portfolio mixes optimized for specific themes you choose. This uses the optimization engine inside the Lorenz app, so the methods you choose are ones you can keep running yourself. Capacity and commitment reset is also on the table: a framework for capacity planning by team and by skill, and for messaging commitments versus stretches to the business.
Who is in the room
The planning group and finance.
You leave with
A planning method you chose with your eyes open, the alternatives on record, and the engine to rerun them.
Threads we would pull
Review exposure across the portfolio
Check whether risk is concentrated in one product, customer or dependency, and diversify where it exceeds the limit.
Reorder for earlier value
Rework the sequence so benefits land sooner or costs land later, and price the difference.
Balance core and customer work
Set the mix of core product versus customer-specific work you want, and state the roadmap cost of each custom commitment.
Price the load new work adds
For each new initiative, state the operating load it will add and fold it into the capacity plan.
Test a control
Test one control and record whether it worked.
This is a representative engagement. After a brief consultation, we would tailor a program for you and your organization.