Using North Star Metrics to display your key information on a large screen
The above visual large screens have too many metrics, and there is no support between metrics and metrics, and there is also a lack of analysis. Even with real-time data, there is no motivation to monitor. Especially for those companies/leaders who pay special attention to practical value, there is no good-looking effect and no actual connotation. It may be evaluated as unpractical and will be educated.
In fact, the visual large screen is doing well, cool is the second, what data metrics are put, it can make people see the key information at a glance, and the actual business is the most important direction.So, how should the large screen metrics be chosen?A series of data, by region, by time, by ratio, by rank, by ring, by year-on-year, can be more than 10 forms. And the capacity of large screen is finite,what metrics should I vote for?
1.Let’s first look at what is a good data metrics
The book mentions some guidelines for good data metrics:
1. Good data metrics are comparable
If you can compare the performance of a certain data metrics in different time periods, user groups, and competitive products, it can help us better understand the actual direction of the product. For example, the drug purchasing rate of a medical APP this week is higher than that of the previous week. Through comparison of different time periods, the reason for “high” can be found;
2. Good data metrics are simple and easy to understand
The team or other colleagues in the company can easily remember or discuss this metrics. Such as user growth rate, profit margin, and payback ratio;
3. Good data metrics is a ratio
The ratio is a natural comparative metrics, such as through the monthly new user rate to determine whether the user of the product is steadily rising. Sudden rise indicates that there is a key behavior, and no rise indicates that there is a problem in the links such as drawing new products and using products. The ratio is a metrics that leads to action and is highly operational. This is exactly what we want.
So, after knowing what is a good data metrics, how should we find good data metrics?
2.How to find the right data metrics?
There are 4 points to keep in mind:
1. Qualitative metrics > quantitative metrics
Qualitative metrics are usually unstructured, empirical, revealing, and difficult to categorize. Quantitative metrics involve many numerical and statistical data, providing reliable quantitative results but lacking intuitive insights;
2. Metrics that can be put into action > vanity metrics
The vanity metrics looks beautiful,but it doesn’t make a difference for your company. Instead, actionable metrics can help you select an action plan to guide your business;
3. Reporting metrics and redictive metrics
Most visualizations reflect current and past data and are technically best kept in real time. The foresight metrics is speculative and predicts the results presented in the future. Reporting and foresight metrics need to be determined based on business conditions. Data projections such as inventory stocks can predict production schedules and avoid selling cliffs. Reporting metrics are used for daily operations of the company, and can keep information flowing and consistent;
4. Relevance metrics and causal metrics
If the two metrics always change together, they are related and can be displayed in a chart, such as a histogram + line chart. If one of the metrics can cause another metricsr to change, there is a causal relationship between them, which can be placed in a set of comparisons.
Step 1: Determine a north star metrics
In general, the large screen that assists the leadership in business decision-making will have a clear theme, such as this (semi-finished product) “real estate company sales large screen.” For this kind of large screen with clear theme, you can use the multi-dimensional dismantling of the north star metrics method when selecting.
“ North Star Metric ” also known as “OMTM”, the only important metrics. The reason why it is called the north star metrics is that once this indicator is established, it is like the north star, setting the theme and direction.
On this large screen, we can see at a glance that this north star metrics is the total sales in 2018, which is the most concerned metrics of the real estate company’s sales department.
Step 2: Multi-dimensional dismantling of the north star metrics
The north star metrics is generally a numerical total, and by multi-dimensional disassembly of this value, the leader has a deeper understanding of the north star metrics.
1. Looking at the changes of the north star metrics from the time dimension
From this large screen, we can see that the company displays the sales metrics in a combination chart and sorts them by month. The trend of these data can be seen at a glance；
2. The distribution of north star metrics from the geographic perspective
Because this company has large and small real estate projects in almost every province of the country, divided into local and large areas and sales teams, it is necessary to show sales on the map. Sales metrics were displayed on a combined map, and sales in each region were clear at a glance；
3. Looking at the completion of the north star metrics from the perspective of the proportion
Compared with the overall metrics, the ratio can show the situation that a certain data index occupies the overall share. From this large screen, we can see that the company displays the annual sales completion rate in the form of a dashboard, so that keeps the leadership and the boss informed of the overall goals achieved；
4. Looking at the ranking of north star metrics from the dimension of the sub-parts
A company or group is often composed of multiple branches, business units or projects. The metrics of these different sub-units together constitute the overall metrics of the company. As can be seen from this large screen, the designers can rank the sales in accordance with the dimensions of the branch and project sales, and visually see which branches and projects are ranked in the top places.
Both metrics use a bar chart, or you can use a column chart to see your personal preferences.
5. Looking at the completion of the north star metrics from the perspective of support
A north star metrics is often supported by other metrics, such as sales = the sum of the contract amount, the actual sales = the sum of the amount of the return, the contract amount and the amount of the return is the supporting metrics of sales. This large screen is to display the supporting metrics of the north star metrics in a line chart.
Seeing this, you may be able to understand my “north star metrics selection” idea. The core is to determine the main map – select the north star metrics – according to the association, causal relationship dismantling metrics, similar to the “Pyramid principle.” In this way, the train of thought is very clear and even large screen projects can see clearly such a way of thinking, rather than blindly piled up metrics, no analysis logic.Of course, the way to choose large-screen metrics is definitely more than this.