Your North Star Metric Is Probably Misleading Everyone

Bart has been in ecommerce for over 20 years, and can't imagine a better job to have. He is interested in all things agile, or anything new to learn.

SHARE
Request to reuse this
Add to my favorites
Topics: Product Management, Strategy

If you’ve been in a product meeting, either a presenter or observer, you’ve probably heard the phrase “North Star” or “North Star metric.” If a team doesn’t already have one, someone in the meeting might ask for one to be created. People nod and agree, and start to throw out metrics in acronym form, such as MAU or LTV or GMV. Eventually, the team lands on one, and adds to the top of every future presentation. One metric to rule them all.

It sounds right in theory; your North Star metric is meant to be the guiding light, the one that helps you navigate the waters through a perilous journey. It’s meant to align teams, simplify the message, and keep everyone headed in the same direction.

The sad truth, though, is that most North Star metrics don't guide anyone—they are actually misleading everyone.

In the quest for simplicity and clarity, the team over-commits—either resources or simply attention—so a single number is offered without realizing how much it can mislead the team, executives and stakeholders. Before long, the team starts building and focusing on dashboards with these metrics, ignoring the ones that are being harmed in equal measure.

For instance, teams chase engagement while quality drops. They cut costs while attrition spikes. They celebrate “dwell time” increasing, not …

Please log in or sign up below to read the rest of the article.