It’s all Just Metrics​Dear Reader,​ Let’s retire the idea that OKRs, North Star Metrics, or KPIs are some sort of mystical construct. I’ve written about the difference between these approaches to using metrics. But since then, I’ve seen many teams hide behind the theater these different metrics frameworks can create, getting lost in alibi progress. It’s time to remind ourselves of one universal truth: No matter what you call it or how you use it, in the end, it’s all just metrics—metrics you use in a certain way to get a certain value from them. A North Star Metric is a metric that helps you align product value and business goals on the highest level. OKRs consist of metrics that help you measure your progress toward a strategic priority within a certain time frame. KPIs are metrics you regularly monitor and react to based on their development. Considering this truth, it’s essential to understand the relationship between a North Star Metric, the financial metrics the business cares about, and the metrics the product team can influence through their everyday work. That’s why, for example, you don’t need to supplement your OKRs with KPIs. Both are metrics, and your Key Results are SUPPOSED to be valuable metrics on their own. If you have to complement them with more metrics, you'll get lost in metrics theater. And that’s why, while I love the construct, I think it’s time to stop talking about KPI trees. This term implies a specific usage of the metrics included. It prevents teams from embracing this as a helpful structure for arriving at useful metrics in different shapes and forms. Instead, call it what it is: A Metrics Tree. Because it’s a visual structure to identify metrics you CAN use as North Star Metrics, OKRs, or KPIs. Did you enjoy this one or have feedback? Do reply. It's motivating. I'm not a robot; I read and respond to every subscriber email I get (just ask around). If these emails aren't for you anymore, you can unsubscribe here. Thank you for Practicing Product, ​Tim​ PS: Thanks to Tim Brauser for reviewing an earlier draft of this essay and providing helpful feedback. Go from Product Strategy to Quarterly OKRsJoin me for an interactive session to talk about setting truly useful OKRs that align with your strategic priorities.
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