3 Frameworks for Metric Thinking

3 key frameworks for leaders to take away when thinking about metrics for their business and product strategies.

I have been thinking a lot recently about my own and team strategy for measuring success, especially where the products are part of a complex value chain towards company outcomes. While thinking about revisiting the Value Propositions how we tell a story of success, a big part of that work is looking at metrics, what do we measure today, what should we measure based on the strategic direction we take and how should we go about it.

So bringing together experiences from my time across industries, working and chatting with some inspirational folks, and some mix of very valuable frameworks from thought leaders, I picked these three as my core mental model as I go about Metric Thinking.

1. Metric Classification Framework:

As product leaders we need a framework to articulate how the metrics we choose play a part towards success. Metrics are key components to evidence success, whether it's via Key Performance Indicators ; Success Measures for OKRs; or Goals for North Stars. The following table is a critical questioning tool that allows to establish the purpose of the metric. By going through this classification exercise, you can better articulate on how the metric would be used, you can identify gaps within the metric strategy (are there only growth metrics but no guardrails, or are they tediously trying to link to company outcomes rather than recognising their value is through indirect metrics)?

??Your metrics will take on multiple tags from the metric types below, as one metric could be leading, growth-oriented, goal, and direct. This allows you to explain the role of the metric.?

I am a big fan of John Cutler 's Beautiful Mess, and the piece on stable metrics, bets and goals, I think you need to read his thoughts and overlay on top of the questions I have laid out above, as for me Core vs Bets is at the heart of my own thinking of classifications. His tome of deep thinking around success metrics, bets and roadmapping is a must read!

2. Strategic Approach.

When considering metrics, it's important to recognise that there is no one-size-fits-all model. Product leaders must evaluate their specific market conditions, company goals, and strategic direction to determine the most relevant metrics. Here’s how different strategic approaches can influence metric selection and usage. I have picked up the following framework as part of the Oxford Strategic Leadership Programme (while I am in the last leg of completion) where Jonathan Trevor 's book Re:Align was in our course curriculum, and this was a great way to take a strategic framework and apply it for metric thinking.

Strategic Alignment Framework for Metrics

(a great application of this framework from Re:Align by Jonathan Trevor)

1. Stability vs. Agility: Balancing the need for reliable, consistent performance (Stability) with the ability to quickly adapt to changing conditions (Agility).
2. Autonomy vs. Connectivity: Balancing the need for individual teams or products to operate independently (Autonomy) with the need for integration and collaboration across the organisation (Connectivity).

For your product and business strategy, assess where on the? Strategic alignment framework you are mapped today and where you want to go, this should determine the strategy direction and the types of metrics that are best suited for that direction. The trade-offs to enable this thinking have been laid out below as “No Perfect Model”. This is the biggest task for the product leadership team,? pick and set the direction and articulate your justification, you cannot cover all aspects of the quadrant!?

No Perfect Model and that is Okay!

Each product leader must evaluate their specific market and strategic direction to select and balance the right metrics. The chosen metrics should align with the organisation's goals and help navigate the trade-offs between stability and agility, as well as autonomy and connectivity. Here’s why:

• Efficiency Maximiser: Prioritise metrics that measure operational efficiency, system reliability, and resource optimization.
• Enterprise Responder: Focus on metrics that reflect responsiveness to market changes, user feedback, and emerging trends.
• Portfolio Integrator: Choose metrics that ensure different products and services work well together, providing a unified user experience.
• Network Exploiter: Select metrics that are in-step with network effects, user interactions, and community engagement.

3. Accountability for the Metric lifecycle in a Cross-Functional Organisation.

Have a clear plan on the various stages of the Metric, and the x-functional accountability towards the activities and outcomes of each stage. And metrics have a lifecycle, so bake this into your product development lifecycle so the metric does not fall out of step.?My simple cycle below is a culmination of working across different companies, and especially work I did with Eva Ryott , how we approached metrics development in a very complex cross-functional organisation.

I would love comments on my chosen way of thinking, and ideas on what other frameworks one should use, do you see things differently when you go about thinking about metrics.

Key inspirations:

Re:Align by Jonathan Trevor

LinkedIn article by Shane McGregor : https://www.dhirubhai.net/pulse/realign-technologists-review-shane-mcgregor/?

John Cutler 's How to think about Bets, Success Metrics, and Roadmapping

Design Thinking and Innovation Metrics

Lots of chats with Eva Ryott over time and more recently Carlos Caicedo , Nanako Yamagishi , Jaco Els and some deep conversation on outcomes and impact with Eric Bowman (Thank you!)