Shopify CEO Tobi Lutke explains Goodhart’s law and why he doesn’t like KPIs or OKRs
“Goodhart’s law is real. The moment a metric becomes a goal, it’s no longer a useful metric… No metric by itself is a complete heuristic for a complex business. There’s a million different https://t.co/pLoiG9fbHE
Shopify CEO Tobi Lutke explains Goodhart’s law and why he doesn’t like KPIs or OKRs “Goodhart’s law is real. The moment a metric becomes a goal, it’s no longer a useful metric… No metric by itself is a complete heuristic for a complex business. There’s a million different https://t.co/pLoiG9fbHE
Most companies make the mistake of tracking what's easy to measure (lines of code, PR counts) rather than what actually matters — “outcome over output.”
Building something no one else can measure
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When the balance skews towards Compete , it is easy to lose sight of the big picture. The vision for the future devolves into questions like, "what if we had more users?" and "what if we just did more stuff?" This mindset drives products to become big, complex messes of features, leaving you wondering, "who asked for all this?" You end up wit
... See moreGeorge Kedenburg III • The Cost of Craft
Benchmark founder Andy Rachleff on what most founders get wrong about product/market fit
“When you’re starting a company, you need to develop a value hypothesis and then a growth hypothesis. The value hypothesis consists of the what, the who, and the how. What are you going to build? For whom is it relevant? And what’s the business model? That’s t... See more
“Startups don’t starve; they drown.” There are always a zillion new ideas about how to make the product better floating around, but the hard truth is that most of those ideas make a difference only at the margins. They are mere optimizations. Startups have to focus on the big experiments that lead to validated learning. The engines of growth framew
... See moreEric Ries • The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses
When I hear people say things like “our goal is to be at 5mm ARR by 2024” I always get a little sad and uncomfortable. I don’t have quantifiable goals like that. And if I do, any number I choose feels arbitrary. My goals are usually more qualitative - to create simple, delightful products that are meaningful for the people they serve, to create dig
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