Input Metrics vs Output Metrics…

Our end goal metrics are output metrics, for example – Revenue, Cash inflow, Traffic, or No. of Active users are output metrics.

Input metrics are controllable metrics that drive these Output metrics.

If traffic is your output metrics then input metrics can be “no. of quality content posted in regular intervals”. 

For revenue, “no. of qualified lead calls per day” can be input metrics.

There can be different input metrics to achieve the same output metric. 

Also, we have control over output metrics only thru input metrics. To control output, we must understand how inputs affect the outputs of the system. And which one to use for achieving our output metrics.

Moreover, it’s not just “no. of content” posted per day. We identified no. of quality content posted per day. The “Qualifier” is critical because we don’t want any “content” we want “quality content” that can engage users and also in regular intervals daily, weekly, monthly, etc. So both the qualifier and interval are critical parts of the input metrics.

In general, our plans be it for external or internal teams are for output metrics; revenue, users, etc. But unless we break it into controllable input metrics and put targets for input metrics, we will not be able to achieve our output metrics.

Identifying Input metrics is hard because what seems obvious can lead to different output metrics or may not even achieve it. It takes time, analysis, and hard work to really understand and identify the core input metrics. And that’s what creates a big differentiator between successful and unsuccessful companies.

A successful company has more clarity on input metrics and how it drives output metrics.

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