Every successful company I've worked with has one thing in common: they've identified their North Star metric—the single measurement that best captures the core value they deliver to customers.
What is a North Star Metric?
A North Star metric is the key measure of a company's success. It's called "North Star" because like the actual North Star, it provides direction and guidance.
Examples:
- Airbnb: Nights booked
- Facebook: Daily active users
- Spotify: Time spent listening
- Salesforce: Customer lifetime value
Why You Need One
1. Alignment
When everyone knows the North Star, decisions become clearer. "Will this help us achieve our metric?" becomes a powerful filter.
2. Focus
It prevents the "shiny object syndrome" that derails so many growing companies.
3. Accountability
It creates clear accountability across teams and individuals.
How to Find Your North Star
Ask these questions:
Your North Star should be a leading indicator of revenue, but not revenue itself. Revenue is a lagging indicator—it tells you what already happened. Your North Star should predict what's coming.
Implementing Your North Star
Once identified:
The best companies obsess over their North Star metric while remaining flexible about how they achieve it.