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by dmos62 1961 days ago
Also, what if engineering is good, but sales is bad? Engineers might exceed their productivity goals, but it wouldn't amount to profit.
1 comments

Then from the internal market economics PoV, here's how it looks:

Engineering: costs (salaries + infra) are covered by revenue (services rendered to exec team). Executive team: costs (execs salaries, expenses to pay engineers and sales for their services, accumulating interest to be returned to investors if any) are NOT covered by revenue (which comes from customers).

I find this decomposition incredibly neat and enabling solving the right problems.