It’s all Just MetricsDear 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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Product Practice #328 My 2024 Mid-Year Review READ ON HERBIG.CO PUBLISHED Jun 28, 2024 READING TIME 5 min & 20 sec This is the last newsletter before my annual summer writing break. I will return on August 16th after next week's issue. In the meantime, follow me on LinkedIn for more hands-on content. ☀️ Dear Reader, I first encountered the concept of a mid-year review via Tiago Forte a few years back. After I published 7 Things I Learned from Writing a Weekly Product Management Newsletter for...
Product Practice #327 How Product Leaders CanGuide Their Team's OKRs READ ON HERBIG.CO PUBLISHED Jun 21, 2024 READING TIME 3 min & 51 sec This is the second-to-last newsletter before my annual summer writing break. I will return on August 16th after next week's issue. ☀️ For the scope of this essay, I will define Product Leaders as members of a Product Management function with people management responsibilities (e.g., Director of Product, Head of Product, VP of Product, etc.). Product leaders...
Product Practice #326 4 Learnings fromWorking on 40 NSMs READ ON HERBIG.CO PUBLISHED Jun 14, 2024 READING TIME 5 min & 0 sec Dear Reader, During an ongoing long-term Discovery and Metrics Coaching engagement, I had the opportunity to meet many different external and internal-facing teams. One of this company’s focus points is the establishment of more metrics-informed decision-making, and they landed on North Star Metrics (NSMs) as a critical vehicle for that. Here are my four key takeaways...