Qubit: Lenny Rachitsky on North Star Metrics
For those unfamiliar with startup metrics, this is a good guide by Lenny Rachitsky.
“That’s why nailing your North Star Metric(s) — the top-line metrics that all company priorities are aligned around — is so crucial. Whatever companies choose as their guiding metric, all energy and brainpower will flow in that direction. This can be hugely effective — it has worked wonders for companies like Airbnb, Netflix, and Uber, especially early on — but it can also be dangerous. By maintaining a laser focus on a single metric for too long, teams risk short-term thinking, missing new opportunities, and sacrificing the user experience. I share some data and case studies below to provide lessons for narrowing in on your own North Star Metric, knowing when to broaden your lens, and when to pivot your approach.”
“Whenever you have a candidate for your North Star Metric(s), determine what levers move this metric, and then focus your ideation around those input metrics. Here’s a (non-exhaustive) set of input metrics for each of the six types of North Star Metrics I outlined above:”
Source:
Choosing Your North Star Metric
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