Choosing Your North Star Metric
When learning to ride a motorcycle, you’re taught that where your eyes go, your bike goes. Look to your right and you’ll drift right. Look left, go left. There’s a lot of power in where you focus your attention.
That’s why nailing your North Star Metric(s) — the top-line metrics that all company priorities are aligned around — is so crucial. Whatever companies choose as their guiding metric, all energy and brainpower will flow in that direction. This can be hugely effective — it has worked wonders for companies like Airbnb, Netflix, and Uber, especially early on — but it can also be dangerous. By maintaining a laser focus on a single metric for too long, teams risk short-term thinking, missing new opportunities, and sacrificing the user experience. I share some data and case studies below to provide lessons for narrowing in on your own North Star Metric, knowing when to broaden your lens, and when to pivot your approach.
So what are the optimal North Star Metric(s) for startups? I surveyed current and past employees at over 40 of today’s most successful growth-stage companies to compile the table below; the findings provide a helpful framework for organizations seeking their own guiding metrics.
