(2023-11-16) Schmidt Input Metrics Are So Hard That Most Product Teams Give Up

Daniel Schmidt: Input metrics are so hard that most product teams give up. Teams can’t usually launch a product or marketing update and immediately see the business impact. They need input metrics to measure the results of their efforts.

Good input metrics are:
predictive of business KPIs
possible to influence with work
lead measures that are sensitive enough for quick learning loops

When a product team has good input metrics, they are off to the races in running experiments and placing bets to create maximum impact.

Solid input metrics allow teams to creatively solve the most important business problems without being told what to build by the top of the org. In short, input metrics enable aligned autonomy.

Figuring out good input metrics is so hard that most product teams give up trying to use them. Here are some reasons why:

Specificity to Product and Strategy:

input metrics are deeply tied to the specific nature and strategy of a product (product strategy). This means they vary significantly from one product to another

Difficulty in Linking to Larger Goals: Teams risk optimizing metrics that don't matter

Dynamic and Evolving Nature: Input metrics that were relevant at one point may become obsolete

Risk of Misinterpretation, Misuse, and Gaming (Goodhart's law): If not carefully selected and monitored, input metrics can lead to misguided efforts. For example, focusing too much on a specific metric like user sign-ups without considering user retention can drive the wrong product decisions.

DoubleLoop.com’s solution

• Phase 1: Map your business drivers & candidates for input metrics
• Phase 2: Validate your input metrics with data
• Phase 3: Place data-driven bets

Identifying good input metrics is only half the battle. Teams must then figure out how to move their input metrics in the right direction. The DoubleLoop platform is designed for teams to record their bets and monitor impact.