Trigger Strategy is now Tentacles 019: North Star Metrics and Framework - are they “dumb”?
Jan 30, 2024
The discussion tackles the bold claim that North Star metrics might be 'dumb.' Insights reveal their role in steering complex adaptive systems while allowing for flexibility. Listeners will delve into the difference between ordered and complex systems, illuminated by intriguing metaphors. The conversation emphasizes the challenges of creating effective performance indicators and warns against oversimplifying their relationships. Ultimately, it's a call to appreciate nuance and adaptability in business strategies.
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North Star Metric Usefulness
- North Star metrics help identify the moment of customer value and revenue generation.
- Useful for optimizing businesses with product-market fit and in growth experiments.
North Star Framework Explained
- The North Star Framework models a causal chain of actions and metrics related to the North Star metric.
- It aims to identify drivers of business growth, visually represented as a driver tree.
Ordered vs. Complex Systems
- Ordered systems (like car engines) have predictable drivers, while complex systems (like businesses) have unpredictable modulators.
- Complex systems involve intertwined elements with non-linear effects, making simple cause-and-effect models inaccurate.