4min snip

Commonplace Expertise cover image

Colin Bryar on the Practice of Amazon's Weekly Business Review

Commonplace Expertise

NOTE

Understanding the Difference Between Controllable Input Metrics and Output Metrics

It is crucial to differentiate between controllable input metrics and output metrics. While output metrics measure outcomes like revenue and profit, input metrics are the actions that lead to these outcomes. Identifying input metrics can be challenging as they involve a long list of customer-facing controllable input metrics that reflect what customers care about. These metrics require conscious investment and are instrumental in driving the desired outcomes for a profitable business. Determining the right controllable input metrics involves trial and error, intuition, and quantification. Constantly evaluating the correlation between input and output metrics helps in refining and identifying the most effective metrics.

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