Strategy

North Star Metric

This exercise helps teams define a single, key success metric that reflects customer value. We'll brainstorm metrics, map them to customer value, and identify leading indicators. The goal? Selecting a North Star Metric to guide product decisions.

Duration
45 mins
Group Size
4-8
Category
Strategy
Difficulty
Easy
Participants will identify the metric that best captures customer value. The team will align on the definition of success. The exercise focuses product development and establishes leading indicators to track progress.

  • Defined North Star Metric.

  • Clear success measure.

  • Focused optimization efforts.

The North Star Metric must reflect customer value, not just business goals. Revenue alone is usually not a good North Star Metric, as it's a lagging indicator. Good examples: Airbnb = nights booked, Facebook = daily active users, Spotify = time spent listening. Avoid "franken-metrics" that combine too many things. The team should be able to explain the North Star Metric in 30 seconds. Supporting metrics break down how to improve the North Star Metric. Some debate is healthy, as it indicates engagement. Once selected, use the North Star Metric to ruthlessly prioritize features. Revisit if the product strategy shifts significantly. Sometimes, teams struggle to narrow down the options; in these cases, try dot-voting after the discussion.

  1. Metric Brainstorming (10 minutes): Brainstorm all possible success metrics. Include engagement, retention, revenue, and satisfaction. Write each metric on a separate sticky note. Don't filter yet – capture everything. Consider metrics across the user journey.

  2. Customer Value Mapping (15 minutes): For each metric, ask: "What customer value does this represent?" Sort metrics into categories: direct customer value (user achieved their goal), proxy for customer value (time spent), and business metric (revenue – but does it show value?). Eliminate vanity metrics (pageviews without context). Focus on metrics tied to user success.

  3. Leading Indicator Identification (10 minutes): Identify metrics that predict long-term success. Look for metrics that occur early in the user journey, predict retention or satisfaction, can be influenced by product changes, and are measured frequently enough to inform decisions. Map relationships between metrics.

  4. North Star Selection (10 minutes): Debate the top 3-5 candidate metrics. Select ONE North Star based on these criteria: it directly represents customer value delivered, measures progress toward the product vision, is actionable (the team can influence it), is understandable to the entire organization, and is a leading indicator of sustainable growth. Define supporting metrics that drive the North Star. Document the decision rationale.

Unlock Step-by-Step Instructions

Join 2,500+ facilitators who use Workshopr to plan better workshops — free during beta.

For Facilitators

  • Review participant profiles and expectations
  • Prepare all materials and supplies
  • Test technology and room setup

For Participants

  • Complete pre-session survey
  • Review background materials
  • Prepare examples or case studies

Unlock Pre-Work Requirements

Join 2,500+ facilitators who use Workshopr to plan better workshops — free during beta.


  • Whiteboard or large workspace.

  • Sticky notes.

  • Markers.

  • Customer value framework.

  • Existing analytics data (if available).

  • Metrics relationship mapping template (optional).

  • Examples of North Star Metrics (optional).

  • Current KPI dashboard (optional).

  • User research insights (optional).

Unlock Materials Required

Join 2,500+ facilitators who use Workshopr to plan better workshops — free during beta.

  • Facilitator Guide (PDF)
  • Participant Workbook Template
  • Presentation Slides
  • Printable Materials

Unlock Resources & Templates

Join 2,500+ facilitators who use Workshopr to plan better workshops — free during beta.

Discussion

0/2000
Loading comments...

Related Exercises

See all exercises

Five Whys

30 mins

The Five Whys is a classic technique to find the root cause of a problem. By repeatedly asking "why," you'll drill down from symptoms to the core issu...

Strategy

Stakeholder Impact Mapping

1.3 hours

Stakeholder Impact Mapping reveals how solutions affect different groups. It highlights impacts teams often miss. In 78 minutes, you'll prevent soluti...

Strategy

Decider Vote

10 mins

The Decider makes the final call on which solution(s) to prototype. They use a super-vote, leveraging team input and strategic judgment to choose the ...

Strategy