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Core concepts

Understand the foundational ideas behind effective metrics: the difference between KPIs and metrics, leading vs lagging indicators, metric decomposition, and more.

Master the core concepts of metrics and KPIs: leading vs lagging indicators, metric decomposition, vanity metrics, and metric ownership explained.

7 guides

Chapters
01Clear definitions
02KPIs and metrics compared
03Why the distinction matters
04How metric trees clarify the relationship
05Common mistakes
06Examples across different functions
07From distinction to system
GuideCore concepts
KPI vs metric: what is the difference?
The terms KPI and metric are used interchangeably in most organisations, but they mean different things. Understanding the distinction is not pedantic. It determines what gets attention, what gets ignored, and whether your measurement system drives focus or creates noise.
View guide9 min read
Chapters
01North Star metric definition
02Why every business needs a North Star metric
03How to choose your North Star metric
04North Star metric examples by business model
05Common mistakes when choosing a North Star metric
06From North Star to metric tree
07The one metric that matters vs the North Star
GuideCore concepts
North star metric: what it is and how to find yours
A North Star metric is the single measure that best captures the core value your business delivers. This guide explains how to choose one, avoid common pitfalls, and turn it into a system your teams can actually use.
View guide9 min read
Chapters
01Definition
02The fundamental difference
03Why most teams get the balance wrong
04How leading and lagging indicators connect in a metric tree
05Leading indicator examples by function
06How to identify the right leading indicators
07The behavioural case for leading indicators
GuideCore concepts
Leading vs lagging indicators explained
Understand the difference between leading and lagging indicators, why both matter, and how a metric tree makes the causal chain between them visible, navigable, and actionable.
View guide8 min read
Chapters
01What are input metrics and output metrics?
02Input and output metrics compared
03How input and output metrics relate to leading and lagging indicators
04Amazon and the power of input metrics
05How metric trees connect inputs to outputs
06Common mistakes with input and output metrics
07Input and output metrics by function
GuideCore concepts
Input metrics vs output metrics
Input metrics measure the controllable activities your teams perform every day. Output metrics measure the business results those activities produce. Understanding the distinction, and connecting the two, is the difference between managing by hope and managing by system.
View guide9 min read
Chapters
01What are vanity metrics?
02Why vanity metrics persist
03The three-part test for an actionable metric
04Common vanity metrics and their actionable alternatives
05How metric trees naturally filter out vanity metrics
06Practical steps to replace vanity metrics
07The deeper point
GuideCore concepts
Vanity metrics vs actionable metrics
Vanity metrics make your dashboard look impressive and your progress report feel reassuring. But they cannot tell you what to do next, why something changed, or whether your business is actually improving. This guide explains what makes a metric vanity, how to apply a rigorous test to every number you track, and how to replace hollow indicators with metrics that drive real decisions.
View guide9 min read
Chapters
01What is metric decomposition?
02Three types of decomposition
03Step-by-step decomposition process
04Common decomposition patterns by business model
05When decomposition goes wrong
06From decomposition to action
GuideCore concepts
Metric decomposition
Metric decomposition is the practice of breaking a high-level business metric into its mathematical and causal components. This guide covers the types, process, and patterns you need to decompose metrics effectively.
View guide10 min read
Chapters
01The accountability gap
02Why ownership changes behaviour
03The RACI model for metrics
04How to assign metric ownership using a metric tree
05Common ownership mistakes
06What happens when ownership works
GuideCore concepts
Metric ownership: who should own which metric and why it matters
Most organisations track hundreds of metrics but few have a named person accountable for each one. This guide provides a practical framework for assigning and managing metric ownership using a metric tree as the structural backbone.
View guide8 min read

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