Metric concepts are widely known and discussed constantly with many methodologies that mention a "True North" metric.
However The North Star Metric (NSM) was first brought to discussion in early 2010s by Sean Ellis helped to structure of the concept and is one that has been used the most, growing the adoption due to its simplicity.
This concept is used when companies and department within large organizations are struggling to identify priorities and direction of the company.
What is a North Star Framework?
The Norht Star Framework is a model to identify a single and most important metric (the North Star Metric) that captures the core values that you deliver to customers.
The framework has four concepts:
- Tasks (generated based on the business requirements of your product or services)
- Metrics (metrics or Key Results defined to guide the tasks and evaluate results)
- North Star Metric
- Long-term Business Objectives and Values
What is a North Star Metric?
The metric measures the long-term success of a company.
This metric represents the company main objective and the core value that gets delivered to users or customers via services or product.
It is the metric that is visible to all and matter the most allowing to identify priorities and long-term goals expectations.
It helps teams to understand the priorities and direction that the company goes.
Samples of North Star Metrics:
- Spotify: time spent per listener
- Linkedin: daily active users
- Uber: daily rides
- Slack: daily active users
- Hubspot: average records created per account
- Zoom: daily hosted meetings
- Netflix: watch time
What are the benefits?
- Alignment: as well as defining OKRs (Objectives and Key Results) upside down a North Star Metric helps alignment and add simplicity.
- Transparency: it shows the one common core metric that shows how the company is doing. It is an open box that gives the employees and teams the one path to success.
- Customer focus: the metric is always the result of something related to your users and customers. This allows the company to identify what their value added.
OKRs vs. North Star Metric
OKRs are Objectives and Key Results that are widely used for companies such as Google and Microsoft, and they define a methodology to create objectives that a measurable with their Key Results.
On the other hand, Norht Star Metric can be one Key Result that is defined within the Company Value Proposition and Objectives.
In Conclusion, OKRs and NSM are complementary of each other and are key to be used for companies to highlight their value proposition.
Team Coaches and the North Star Metric
Since the concept was introduced by our customers, there was always a discussion on how a software an help track and identify startups and projects with a north star.
Team Coaches evolves in the way that customers feel proud of using it in their day to day tasks, that is why we invest time to develop our solution.
Team Coaches provides Metrics and OKRs tools for companies to track their progress and make sure that you have your North Star.
For more information read:
Team Coaches works for you
Team Coaches is a community software that provides an unified way to maintain entrepreneurship community engaged offering tools for managing all the aspect of running an innovation program and maintain prospects and companies track.
A community for them and a solution for you!!!
If you like our product you can book a demo and we can talk about how we can fit into your programs.