Trigger Strategy
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.
16:47
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Quick takeaways
- North Star metrics serve as navigational tools for businesses but should not be seen as singular targets to chase blindly.
- Understanding the distinction between ordered and complex systems is crucial for effectively applying metrics in unpredictable business environments.
Deep dives
Reevaluating North Star Metrics
The discussion centers around the concept of North Star metrics and frameworks, highlighting a critique of the conventional understanding of being data-driven. The argument suggests that North Star metrics should guide businesses but warns against using them as a singular target to chase blindly. Misapprehensions about what drives such metrics can lead to focusing on the wrong elements, causing businesses to pursue paths that might be detrimental. For example, a business might believe increasing metric A will positively affect the North Star metric, only to find the opposite effect occurring, illustrating a disconnect in their understanding of causal relationships.
