What are the Common Principles for Designing Effective Growth Trackers?
Building on the initial discussion about when to use growth trackers, this concept focuses on the common principles that govern the design of effective trackers.
Let's go through the 3 key principles.
Hierarchy of Metrics:
Instead of presenting a long list of metrics, organize them into a clear hierarchy. This method prevents information overload and provides clarity on the importance and interconnection of various metrics.
A hierarchical approach helps in quickly identifying which metrics are crucial and how secondary metrics feed into the primary ones, streamlining the analysis process.
We've covered how to implement metric hierarchy here in Analytical skills.
Key Metrics and Performance Indicators:
Start your tracker by highlighting the key metrics or key performance indicators (KPIs) at the top. This structure ensures that these critical metrics are immediately visible, allowing stakeholders to quickly assess whether key goals are being met.
Subsequent metrics that influence these KPIs can then be detailed, reinforcing the understanding of how inputs affect the overall performance.
Pairing Complementary Metrics:
When setting up metrics, always pair them to ensure a comprehensive view of the situation. For example, pair a volume metric (like total sales) with a quality metric (like cost efficienct).
This pairing prevents skewed interpretations that might occur if one aspect is considered without its counterpart, thus providing a balanced perspective on performance.
We've covered this principle in-depth here in Analytical skills.
Takeaway:
The principles of hierarchy, clear identification of key metrics, and complementary pairing are foundational to designing effective growth trackers. These principles ensure that trackers not only present data but do so in a way that is immediately actionable and comprehensive, aiding in decision-making.