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Published · transcript-backed

Lenny Rachitsky: belief

21 Sept 2023 Lenny's Podcast Becoming evidence-guided | Itamar Gilad (Gmail, YouTube, Microsoft)

“I think a lot of people think they have something like this in mind where they're just like, "Cool, here's our North Star Metric, here's the levers and things that we can work on to move that.”

— Lenny Rachitsky

Source trail

Everything needed to verify it.

Speaker
Lenny Rachitsky
Attribution
Verified speaker
Claim type
belief
Recorded
21 Sept 2023
Publisher
Lenny's Podcast

Transcript context

…Exactly. Basically how the business is benefiting. Awesome. I think this is a really important concept, the metric tree. I think a lot of people think they have something like this in mind where they're just like, "Cool, here's our North Star Metric, here's the levers and things that we can work on to move that. " But I think actually mapping it out the way you have it here where it kind of goes layers and layers deep to all of the different variables that impact this metric. Not only is it a way to think about impact and goals and things like that, but also helps you estimate the impact of the experiment you're potentially thinking about running. So if you're going to work on something at the bottom here like activation rate, say you move that 10%. How much is that going to impact this global metric? It's probably a very small amount. This is a very important one and we'll talk about impact assessment shortly, this helps with it. It also helps with alignment because the entire organization is trying to move these two metrics, it's the two sides of our mission essentially. We have the mission that's the top objective of the company and these are the two top most key results if you like, the top most things. So when you go and work with another team and you say, "Hey, why don't you work on my project?" They might say, "This idea actually might move the North Star metric model in your idea." And that helps you guys align and I've seen cases where team B put aside their own ideas to jump on the ideas of team A, because of this model. It also creates an opportunity to give some sub metrics to teams to own on an ongoing basis, so it creates a little sense of ownership as well and mission within the tree.…

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