A metrics tree breaks the North Star metric (the one that sums up the value customers receive, measured frequently) down into the input metrics that move it and, below them, into levers: actions the team controls. It shows how day-to-day work reaches the product outcome, exposes metrics with no owner or no action, and helps choose what to measure in each experiment.
How to use
- Write the North Star at the top: who gets value, doing what, in which time window.
- Add 3 to 5 input metrics right below and, if needed, sub-metrics on the next level.
- End each branch with levers: actions the team controls that move the metric above.
- In the second step, give each input metric a balancing metric.
- Read the checks and the suggested owners table, then export it to review with the team.
What each field asks for
| Field | What to enter |
|---|---|
| Metrics tree | Top: the North Star. Below: input metrics. Levels 3 and 4: sub-metrics and levers (actions the team controls). |
| Metric in the tree | E.g. new team activation |
| Balancing metric | E.g. teams still active after 30 days |
Example
A fictional task management app uses "active teams completing the core task per week" as its North Star. Below it sit four input metrics: new team activation, usage frequency per team, team retention in month 3 and new teams from referrals. Activation breaks down into "time to first value", with two levers (a ready-made project template and spreadsheet import). The tool points out that "new teams from referrals" has no lever yet, that retention and referrals lack a balancing metric, and suggests owners: an activation and growth PM for activation, the core product PM for frequency and retention.
When to use
- When defining or reviewing the product North Star and showing what moves it.
- In quarterly planning, to connect initiatives to metrics and avoid deliveries with no measured effect.
- When several areas compete for the same metric and it is unclear who owns each one.
- Before an experiment, to choose the primary metric and the balancing one.
Frequently asked questions
What is a North Star metric?
It is the metric that best sums up the value customers get from the product, measured frequently. A good North Star rises when customers succeed and falls when they stop, and the team can influence it.
What is the difference between an input metric and a lever?
An input metric is something you measure that pulls the North Star, such as new account activation. A lever is an action the team controls, such as simplifying sign-up, that should move the input metric.
How many input metrics should I use?
Usually 3 to 5. Fewer tends to hide important parts of the value; more dilutes focus. The tool warns you when the tree goes above five.
Why are downloads or sign-ups poor North Stars?
Because they are counts that grow even without delivering value and almost never fall. They are vanity metrics. Prefer an action that shows real use in a period, such as orders completed per week.
Can revenue be the North Star?
Revenue is a consequence of the value delivered and reacts slowly. It matters, but it usually works better as a business or balancing metric, while the North Star measures the value the customer receives.
What is a balancing metric?
It is the one that reveals the side effect of pushing an input metric. If the team speeds up activation, the balancing metric might be how many accounts are still active after 30 days.
How does the tool suggest an owner for each metric?
From the theme of the text: activation goes to growth, revenue to monetisation, support to customer experience, and so on. It is only a suggestion to start the conversation: confirm it with the team.