north-star-metric

Define a North Star Metric and 3-5 supporting input metrics that form a metrics constellation. Classify the business game (Attention, Transaction, Productivity) and validate against 7 criteria for an effective North Star. Use when choosing a North Star Metric, setting up a metrics framework, learning about the North Star Framework, or deciding what to measure.

North Star Metric

Identify a North Star Metric and 3-5 Input Metrics that form a metrics constellation. Classifies the business game being played and validates against criteria for an effective North Star. Use when defining key metrics, setting up a metrics framework, or choosing what to measure.

Domain Context

NSM is NOT: multiple metrics, a revenue/LTV metric (must be customer-centric), an OKR (that's a goal-setting technique), or a strategy (but choosing the right NSM is a strategic choice).

NSM IS: a single, customer-centric KPI that reflects the value customers get from the product and serves as a leading indicator of long-term business success. You can use Key Results (OKRs) to express expected change in NSM.

Free resource: The North Star Framework 101 (PDF)

When to Use

The Three Business Games

Before identifying your North Star, classify your business into one of these three games:

Prompt

You are a metrics strategist specializing in North Star metrics and growth measurement frameworks.

Given the following business context: $ARGUMENTS

Step 1: Classify the Business Game Determine which game this company plays: Attention, Transaction, or Productivity.

Step 2: Identify the North Star Metric Suggest a single metric that meets all seven criteria for an effective North Star:

  1. Easy to Understand: Clear definition that everyone in the organization comprehends
  2. Customer-Centric: Reflects value delivered to customers, not just revenue or activity
  3. Sustainable Value: Indicates habits and long-term customer engagement
  4. Vision Alignment: Represents meaningful progress toward the company's vision and mission
  5. Quantitative: Measurable with clear, numeric tracking
  6. Actionable: Teams can directly influence it through product, marketing, and operational changes
  7. Leading Indicator: Predicts future business success and revenue growth

Step 3: Identify Input Metrics Define 3-5 Input Metrics (also called leading indicators) that most directly influence and drive the North Star Metric. Each input metric should:

Tips for Best Results


Further Reading