Goals are an essential component of any strategy because they provide a transparent and quantifiable means of monitoring progress toward achieving a vision. In the business world, goals are frequently set using the SMART criteria, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound. These criteria ensure that goals are lucid, actionable, and have a clearly defined deadline.
The provided examples, such as Microsoft’s goal of having a computer on every desk and in every home, demonstrate how a vision can be translated into a specific and measurable goal. Microsoft’s goal is specific in that it targets a specific audience, and homes, and defines the target outcome, a computer. It is also measurable because it can be tracked by the percentage of homes with computers.
Similarly, Teach for America’s vision, “One day, all children in this nation will have access to an excellent education,” is translated into a specific and measurable goal of X% of children with education. The goal of the Alzheimer’s Association, “A world without Alzheimer’s disease,” is translated into a measurable and time-bound goal of an X% decrease in Alzheimer’s cases.
A review of the literature on goal-setting theory suggests that setting specific and challenging goals results in improved performance and higher achievement (Locke & Latham, 2002). In addition, having a specific and measurable objective can increase motivation and focus on achieving the desired result (Eisenberger & Lennon, 1980). Moreover, setting goals can serve as a feedback mechanism, allowing individuals and organizations to track progress and adjust their strategies as required (Kleingeld, Koopman, & Thierry, 2010).
In conclusion, setting specific and measurable goals is a crucial component of any strategy, as they provide a transparent and actionable means of tracking progress toward achieving a vision. Goals can be clear, actionable, and have a defined deadline when using the SMART criteria. The provided examples, such as Microsoft and Teach for America, illustrate how a vision can be translated into specific, measurable, and measurable goals that can be achieved.
A North Star metric is a key performance indicator (KPI) that assists a business in focusing on its ultimate vision and goals. It is a metric that represents the core value a product or service provides to its customers. The North Star metric for a product development company could be the number of users who engage with the product on a consistent basis. This metric can help the company gauge its progress toward its ultimate goal of developing a product that is widely adopted and adored by customers.
To set goals using a North Star metric, a product development company must first identify the metric that best represents the core value of its product. This could be accomplished through customer research and feedback, as well as internal analysis of performance data. Once the North Star metric has been identified, the organization can set specific, measurable, and achievable goals for it. For instance, the company may set a quarterly goal to increase the number of daily active users by 20%.
To achieve this goal, the company will need to devise a strategy that focuses on enhancing the user experience and product engagement. This may consist of implementing new features, conducting user testing, and analyzing customer feedback. Additionally, the company should establish a system for tracking and measuring progress toward the objective, and make necessary adjustments.
Importantly, the North Star Metric should be a leading indicator of success, not a lagging indicator. A leading indicator is a measurable value that changes before the ultimate goal is reached, whereas a lagging indicator is a measurable value that changes after the ultimate goal is reached. This indicates that the North Star Metric should be used to guide the company’s strategy, as opposed to merely measuring its success retroactively.
Literature refers to the North Star Metric concept as “Single Metric That Matters” (SMTM). The concept behind SMTM is to focus on a single metric that drives growth and aligns teams around a common goal. The North Star Metric concept gained popularity thanks to Marty Cagan’s book “Inspired: How to Create Tech Products Customers Love.”
In conclusion, setting goals with a North Star metric is a potent method for a product development company to focus on its ultimate vision and measure its success-related progress. By identifying the metric that best represents the product’s core value, setting specific, measurable, and attainable goals, tracking progress, and making adjustments as necessary, a company can increase the likelihood of developing a product that is widely adopted and adored by its customers.
References:
Eisenberger, R., & Lennon, R. (1980). The motivation to work. John Wiley & Sons.
Kleingeld, A., Koopman, P. L., & Thierry, H. (2010). Goal setting and feedback in organizations: a meta-analysis of design and evaluation features. Journal of Occupational Health Psychology, 15(2), 230.
Locke, E. A., & Latham, G. P. (2002). Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9), 705-717.
