North Star Metric
A north star metric is the key measure of success for the product team in a company. It defines the relationship between the customer problems that the product team is trying to solve and the revenue that the business aims to generate by doing so. This serves three critical purposes in any company. It gives your organization clarity and alignment on what the product team needs to be optimizing for and what can be traded off. It communicates the product organizations’ impact and progress to the rest of the company – resulting in more support and acceleration of strategic product initiatives. In most companies, product teams are measured by how much they ship, not on the impact they have on the business. Without an impact driven culture in product, you can’t influence the destiny of your business. Without a north star, you can’t have a product-led company. Thus, a ‘shooting’ northern star has three attributes. The first attribute measures the moment a customer finds value in your product. The second attribute represents the backbone of your existing product strategy. The third attribute is a leading (not lagging) indicator of future business results that your company cares about. In addition to that, the metric is also used to derive goals and metrics for individual product teams. Every team needs their own specific goal that drives the product organization’s north star forward.
North Star Metric template consists of four slides with bright and stylish infographics. The first slide is presented as a planetary star system. Each social network is represented as a planet of a certain size. The slide immediately grabs the audience’s attention with its distinctive design. You can use it at the very beginning of your deck to grab the attention of your audience. The next slide represents three blocks – Product Initiatives, North Star, Revenue and Shareholder. You can use this slide when holding a meeting with your managers. For example, you can present them with a change in strategy and indicate the main products to promote. The third slide is intended to define the main metrics of the polar star model. The slide will be useful when developing joint actions between the marketing department and the sales department. You will be able to define the required indicators and remove unnecessary ones. The next slide presents your data in a functional diagram. This slide can be used by HR specialists.
North Star Metric template will be useful for product managers and leaders of new directions. All slides in this template are editable and you can independently make all the necessary changes in accordance with your corporate identity. This template will complement and update your old presentations. The template will also be useful for sales managers and most certainly product managers.