PACED Yield
PacedRevenue21 August 2026
PACED Yield is the Rolled Throughput Yield of a revenue engine: the product of its five gate efficiencies, Position × Activate × Capture × Embed × Develop. It measures how efficiently the engine converts reachable potential into compounding revenue, and because the gates multiply, five gates each at 70% run the engine at 17%.
The formula. PACED Yield = P × A × C × E × D, where each term is a Gate Efficiency: actual performance divided by the achievable benchmark for that gate, in that motion. The whitepaper publishes an achievable figure per gate.
Why five gates at 70% deliver 17%
Redo PACED Yield's headline arithmetic yourself: 0.7 × 0.7 × 0.7 × 0.7 × 0.7 = 0.168. A dashboard that reports gates one at a time shows five reassuring 70s and no 17, so every individual number survives review while the engine delivers a sixth of its potential. PACED Yield is the one number that carries the whole engine, and computed honestly it lands lower than most leaders expect, because it measures throughput against a perfect engine.
What it is not. PACED Yield is not an average, and averaging is precisely the error it exists to correct: gates at 90%, 90%, 90%, 90% and 10% average 74% and deliver 6.6%. It is also not a forecast. It describes what the engine converts today, not what the pipeline promises.
Where it comes from. Defined in The Revenue Debt You Cannot See, which adapts Rolled Throughput Yield, the Six Sigma measure of a multi-step process, to the revenue engine.
Related terms. Revenue Debt, the cost the yield prices; the binding constraint, the term that sets the ceiling; the Churn-Masking Illusion, which flatters the D term.
The free PACED diagnostic computes your yield band from fifteen questions.
Sources
- The Revenue Debt You Cannot See, PacedRevenue (v1.0, May 2026): definition, formula, and the 70%-to-17% arithmetic.