Operating Temperature Diagnostic
A measurement framework to accurately assess whether a company is overheating, freezing, or operating at optimal temperature before crisis hits.
A measurement framework to accurately assess whether a company is overheating, freezing, or operating at optimal temperature before crisis hits. Uses 10 indicators (burn rate vs revenue growth, hiring velocity, time to fill roles, CAC, product release velocity, infrastructure incidents, employee turnover, customer churn, cash runway, competitive position) scored from 1 (Freezing) to 5 (Overheating).
When to Use Operating Temperature Diagnostic
Use quarterly to assess company operating temperature, when planning strategic changes, when burn rate or growth rate changes significantly, or when considering major investments or cuts.
How to Apply
Score Each Indicator
Rate each of 10 indicators from 1 (Freezing) to 5 (Overheating) based on current metrics.
Questions to Ask
- What is our burn rate vs revenue growth ratio?
- What is our hiring velocity?
- How long does it take to fill roles?
- Is our CAC stable, rising, or declining?
- What is our product release velocity?
- How many infrastructure incidents per month?
- What is our employee turnover rate?
- What is our customer churn rate?
- What is our cash runway?
- Are we gaining or losing competitive position?
Calculate Average Score
Average all 10 scores to get overall temperature reading.
Interpret Temperature
< 2.0 = Dangerously cold; 2.0-2.5 = Too cold; 2.5-3.5 = Optimal zone; 3.5-4.0 = Too hot; > 4.0 = Dangerously hot
Determine Action Triggers
Score < 2.0: Emergency warming needed. Score 2.0-2.5: Gradual warming. Score 2.5-3.5: Maintain. Score 3.5-4.0: Activate cooling. Score > 4.0: Emergency cooling required.