Org Health Diagnostic

What it measures: Can we fund operations and invest in growth?

Key metrics:

• Runway — months at current burn (Green: >12, Yellow: 6-12, Red: <6)
• Burn multiple — net burn / net new ARR (Green: <1.5x, Yellow: 1.5-2.5x, Red: >2.5x)
• Gross margin — SaaS target: >65% (Green: >70%, Yellow: 55-70%, Red: <55%)
• MoM growth rate — contextual by stage (see benchmarks)
• Revenue concentration — top customer % of ARR (Green: <15%, Yellow: 15-25%, Red: >25%)

2. 📈 Revenue Health (CRO)

What it measures: Are customers staying, growing, and recommending us?

Key metrics:

• NRR (Net Revenue Retention) — Green: >110%, Yellow: 100-110%, Red: <100%
• Logo churn rate (annualized) — Green: <5%, Yellow: 5-10%, Red: >10%
• Pipeline coverage (next quarter) — Green: >3x, Yellow: 2-3x, Red: <2x
• CAC payback period — Green: <12 months, Yellow: 12-18, Red: >18 months
• Average ACV trend — directional: growing, flat, declining

3. 🚀 Product Health (CPO)

What it measures: Do customers love and use the product?

Key metrics:

• NPS — Green: >40, Yellow: 20-40, Red: <20
• DAU/MAU ratio — engagement proxy (Green: >40%, Yellow: 20-40%, Red: <20%)
• Core feature adoption — % of users using primary value feature (Green: >60%)
• Time-to-value — days from signup to first core action (lower is better)
• Customer satisfaction (CSAT) — Green: >4.2/5, Yellow: 3.5-4.2, Red: <3.5

4. ⚙️ Engineering Health (CTO)

What it measures: Can we ship reliably and sustain velocity?

Key metrics:

• Deployment frequency — Green: daily, Yellow: weekly, Red: monthly or less
• Change failure rate — % of deployments causing incidents (Green: <5%, Red: >15%)
• Mean time to recovery (MTTR) — Green: <1 hour, Yellow: 1-4 hours, Red: >4 hours
• Tech debt ratio — % of sprint capacity on debt (Green: <20%, Yellow: 20-35%, Red: >35%)
• Incident frequency — P0/P1 per month (Green: <2, Yellow: 2-5, Red: >5)

5. 👥 People Health (CHRO)

What it measures: Is the team stable, engaged, and growing?

Key metrics:

• Regrettable attrition (annualized) — Green: <10%, Yellow: 10-20%, Red: >20%
• Engagement score — (eNPS or similar; Green: >30, Yellow: 0-30, Red: <0)
• Time-to-fill (avg days) — Green: <45, Yellow: 45-90, Red: >90
• Manager-to-IC ratio — Green: 1:5–1:8, Yellow: 1:3–1:5 or 1:8–1:12, Red: outside
• Internal promotion rate — at least 25-30% of senior roles filled internally

6. 🔄 Operational Health (COO)

What it measures: Are we executing our strategy with discipline?

Key metrics:

• OKR completion rate — % of key results hitting target (Green: >70%, Yellow: 50-70%, Red: <50%)
• Decision cycle time — days from decision needed to decision made (Green: <48h, Yellow: 48h-1w)
• Meeting effectiveness — % of meetings with clear outcome (qualitative)
• Process maturity — level 1-5 scale (see COO advisor)
• Cross-functional initiative completion — % on time, on scope

7. 🔒 Security Health (CISO)

What it measures: Are we protecting customers and maintaining compliance?

Key metrics:

• Security incidents (last 90 days) — Green: 0, Yellow: 1-2 minor, Red: 1+ major
• Compliance status — certifications current/in-progress vs. overdue
• Vulnerability remediation SLA — % of critical CVEs patched within SLA (Green: 100%)
• Security training completion — % of team current (Green: >95%)
• Pen test recency — Green: <12 months, Yellow: 12-24, Red: >24 months

8. 📣 Market Health (CMO)

What it measures: Are we winning in the market and growing efficiently?

Key metrics:

• CAC trend — improving, flat, or worsening QoQ
• Organic vs paid lead mix — more organic = healthier (less fragile)
• Win rate — % of qualified opportunities closed-won (Green: >25%, Yellow: 15-25%, Red: <15%)
• Competitive win rate — against primary competitors specifically
• Brand NPS — awareness + preference scores in ICP

Scoring & Traffic Lights

Each dimension is scored 1-10 with traffic light:

• 🟢 Green (7-10): Healthy — maintain and optimize
• 🟡 Yellow (4-6): Watch — trend matters; improving or declining?
• 🔴 Red (1-3): Action required — address within 30 days

Overall Health Score: Weighted average by company stage (see references/health-benchmarks.md for weights).

Dimension Interactions (Why One Problem Creates Another)

Dashboard Output Format

ORG HEALTH DIAGNOSTIC — [Company] — [Date]
Stage: [Seed/A/B/C]   Overall: [Score]/10   Trend: [↑ Improving / → Stable / ↓ Declining]

DIMENSION SCORES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
💰 Financial    🟢 8.2  Runway 14mo, burn 1.6x — strong
📈 Revenue      🟡 5.8  NRR 104%, pipeline thin (1.8x coverage)
🚀 Product      🟢 7.4  NPS 42, DAU/MAU 38%
⚙️  Engineering  🟡 5.2  Debt at 30%, MTTR 3.2h
👥 People       🔴 3.8  Attrition 24%, eng morale low
🔄 Operations   🟡 6.0  OKR 65% completion
🔒 Security     🟢 7.8  SOC 2 Type II complete, 0 incidents
📣 Market       🟡 5.5  CAC rising, win rate dropped to 22%
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

TOP PRIORITIES
🔴 [1] People: attrition at 24% — engineering velocity will drop in 60 days
   Action: CHRO + CEO to run retention audit; target top 5 at-risk this week
🟡 [2] Revenue: pipeline coverage at 1.8x — Q+1 miss risk is high
   Action: CRO to add 3 qualified opps within 30 days or shift forecast down
🟡 [3] Engineering: tech debt at 30% of sprint — shipping will slow by Q3
   Action: CTO to propose debt sprint plan; COO to protect capacity

WATCH
→ People → Engineering cascade risk if attrition continues (see dimension interactions)

Graceful Degradation

You don't need all metrics to run a diagnostic. The tool handles partial data:

• Missing metric → excluded from score, flagged as "[data needed]"
• Score still valid for available dimensions
• Report flags which gaps to fill for next cycle

References

• references/health-benchmarks.md — benchmarks by stage (Seed, A, B, C)
• scripts/health_scorer.py — CLI scoring tool with traffic light output