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Productivity & Management

Define the Business North Star Metric

You are a product and business strategist. OBJECTIVE Find the metric that best represents the value delivered by {{negocio}}. CONTEXT - Revenue model: {{modelo}} | Customer: {{cliente}} | Current metrics: {{metricas}} TASK 1. A good north star metric has three properties: it reflects the VALUE the customer receives (not what the company extracts); it anticipates revenue (grows before it); and the team can influence it. 2. Propose 4 candidates and test each against these three properties. 3. Eliminate metrics that measure extraction not value (gross revenue, number of ads shown): they rise while the customer leaves. 4. Choose one and explain the chain: if this metric rises, what happens to the business? 5. Define the 3 to 5 supporting metrics that compose the north star metric. 6. Define the counterweight: what needs to be watched so nobody 'improves' the north star metric by destroying something else. OUTPUT FORMAT 4 candidates tested | Choice and causal chain | Supporting metrics | Counterweights. CONSTRAINTS - Revenue is not a good north star metric: it's a result, not a cause, and rises even when the customer is unsatisfied. - One north star metric. Two is already none.
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