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Metrics Tree

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  • unit economics,
  • metrics,
  • cards
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A tool that aims to show exactly how and where to improve a business process that is a bottle neck according to unit economics and Goldratt's theory of constraints.

A metrics tree is a metaphor that links different metrics together. Creating a tree starts by specifying a target metric, which is usually related to financial metrics, which in turn are related to decision metrics, which are unit economics metrics, which in turn are related to product metrics, and these are already related to atomics. 

As a result, we end up with a tool that allows us to understand exactly at what expense we can improve the unit economics metrics that have been identified as a growth point using Goldratt's theory of constraints.

Unit economics metrics show what business process needs to be improved, and product metrics show how exactly it should be done.

Unit economics & financial modeling in practice

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