A North Star Metric (NSM) is a key metric chosen by a company with the aim of leveraging results and focusing on what really matters. Using a North Star Metric is a way to measure the company's progress with a focus on sustainable business growth. It can be classified as an Output metric as it is the result of different smaller activities that can be measured by other metrics – Input metrics – and which together aim to achieve a specific result and make an impact.

Some examples of North Star Metrics from famous companies are the time people spend on the platform watching movies and TV shows (Netflix) and the number of active users per month (Facebook).

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The North Star metric is a way to simplify the company's overall strategy and guide collaborators in the same direction, ensuring that the most important goals are achieved.

Its importance lies in the fact that this metric is able to align the organization towards the actions that must be performed and the processes that must be optimized. This brings as a consequence quality support and acceleration of results, improving the product or service offered.

There is no leadership without accountability.

Some of the benefits of having a North Star Metric are:

• Alignment of the entire company around the same objective;
• Improved transparency in the company regarding numbers and processes;
• Better communication between employees and with customers.