Methodology

How R&D Audits Work

A structured, 4-phase methodology that transforms raw engineering data into board-ready financial clarity. Typical engagement: 4 weeks.

1

Discovery & Data Collection

Week 1
📋

We collect the raw data needed to build an economic model of your engineering organization.

Activities

  • →Engineering team structure and size analysis
  • →Technology stack and architecture review
  • →JIRA/Linear ticket analysis (last 6-12 months)
  • →CI/CD pipeline metrics (build times, deployment frequency)
  • →Cost data (cloud spend, tool licenses, headcount)

Deliverable

Data collection brief + preliminary risk assessment

2

Technical Assessment

Week 2
🔬

Deep analysis of codebase health, architecture patterns, debt accumulation, and AI infrastructure.

Activities

  • →Codebase static analysis (complexity, duplication, coupling)
  • →Architecture review (monolith vs. microservices, data flow)
  • →Dependency audit (outdated packages, vulnerability surface)
  • →AI/ML infrastructure review (model costs, retraining pipelines)
  • →Interview key engineering leaders and architects

Deliverable

Technical risk inventory + architecture debt map

3

Economic Modeling

Week 3
📊

Translate technical findings into financial metrics that boards, investors, and executives can act on.

Activities

  • →Product Debt Index (PDI) calculation
  • →Innovation Tax quantification (% of R&D on maintenance)
  • →Technical Insolvency Date projection
  • →APER scoring (revenue per engineer vs. benchmarks)
  • →AI COGS analysis (if applicable)

Deliverable

Dollar-denominated debt summary + insolvency timeline

4

Remediation Roadmap

Week 4
🗺️

Prioritized playbook for debt remediation with quarterly milestones and ROI projections.

Activities

  • →Debt remediation priority matrix (impact vs. effort)
  • →Quarterly milestone plan with measurable targets
  • →Team restructuring recommendations (if needed)
  • →Technology modernization recommendations
  • →Executive presentation and board slide deck

Deliverable

Board-ready report + quarterly remediation plan

Start Your Audit

Board-ready results in 4 weeks. Dollar-denominated. Actionable. No 50-page technical reports that nobody reads.

Book R&D Capital Audit →