Lenny Rachitsky: commitment

Transcript context

…hey got a lot of pushback for having a product that's maybe too addictive. And the same thing carrying into Instagram and some of the other Meta products or basically anything that is highly engaging. So I do think the right incentives can actually help a team to focus on it, but there's going to be sort of a natural usage cycle to any product as well. I'm glad you mentioned North Star Metrics. I actually have a post I will link to in the show notes where I collected the North Star Metrics of 30 different companies to give you some inspiration. I know this is a deep topic of its own, but just when someone is trying to pick their own North Star Metrics, which I 1000% agree, informs so much about how your company operates. It basically focuses everyone's incentives to let's drive this thing. And that changes so much of what you're building. Any just bullet point piece of advice for helping you pick your North Star Metrics? I start with the value that's uncovered through the [inaudible 01:21:02] test. So with a company, I'll say, "Okay, this is what the must have value is according to our most passionate customers, and we want to think about a metric that reflects us delivering that value." And then I'll give them kind of a framework of ways to think about a North Star Metric. But I think it's really important for it to be a time capped group conversation. And if you give a team 30 days, they'll take 30 days. If you give them six months, they'll take six months. But I think generally a team can come up with a pretty good North Star Metric after 30 minutes if they have the right raw ingredients and a checklist of what's important in a North Star Metric. Something that's not a ratio, it's something that can be up onto the right over time. So you can keep managing it and feeling good. It should correlate to revenue growth, but revenue shouldn't be the North Star Metric, but as you grow value across your customer base, you should be able to grow revenue at the same rate. And so there's- Revenue at the same rate. And so there's some other things, but I think that would be the most important, is that it's something that could be up and to the right over time and reflects value that you're delivering to customers.…

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