Yesterday, I posted 3 Immediate Strategic Needs for the Coop.
The goal of today’s post is to solidify 2 of those needs: North Star Metrics & Core KPIs.
At the end of this post, I also share some thoughts on empowering high-impact contributors, though no concrete proposals. That comes next.
Where are we today
Over the past 3-4 weeks, I’ve been reviewing community materials & having conversations with many of you to learn what you believe we need to focus on.
Through this process, two core points are clear:
- We are aligned on what fundamentally matters
- There are a lot of additional metrics that tell important stories
With that in mind, here is what I recommend
- We reaffirm our commitment to 5 core metrics
- We enable individual community members & working groups to use more nuanced metrics
Today, I am focusing on #1. I break core metrics into 1) North Star Metrics and 2) Core KPIs. The core question for you to consider is: "Are we still roughly aligned?”
I am confident we are.
North Star Metrics
North Star metrics are supposed to be the measurement that’s most predictive of an organization’s long-term success. It is an exercise in simplifying the overall strategy into terms all can remember, understand, and apply [Learn more: Mixpanel & Grow & Amplitude].
Well-crafted north star metrics have 3 attributes:
- Measures user value
- Represents a product strategy
- Is a leading indicator of revenue
Crafting a single north star metric for the Coop is not easy. Our products already provide value to users in different ways (FLI vs. DPI/CGI).
So, for this first iteration, I recommend we use 2 North Stars to guide us as we learn more:
$ Total Value Locked
$ Aggregate Trade Volume
These are the strong metrics to use as North Stars:
- They measure user value
- They represent a product strategy
- They are leading indicators of revenue
These can be then broken down further (i.e. by product & incentivized/unincentivized) to provide more actionable insight.
Core Key Performance Indicators (KPIs)
Core KPIs are used to answer, “How are we doing against our north star?”
We’ve largely circled around a similar set of KPIs since launch. Based on all prior posts & conversations, I recommend we focus on 3 to help us answer, “how are we doing?” against our North Stars.
# Total Unit Supply
# Total Unique Holders
$ Protocol Revenue
Again, these metrics can be broken down further, i.e. by product and incentivized vs. unincentivized.
Next Steps - Core Metrics
Request for feedback
- What might be missing from these core metrics?
- Generally, what is unclear? What questions come up?
Intended next steps
- Ensure we have tracking/tooling for core metrics across current Coop products
- Update the Weekly Planning Deck to focus on these core metrics
Addendum: Empowering High-Impact Contributors
Finally, let’s touch on Strategic Need #3: Empowering high-impact contributors.
As described in Roles, Contributions, and Rewards and October Rewards Distribution & Methodology, not all work gets compensated. These posts do a great job describing how Treasury Rewards ought to work.
It has been clear, though, that Treasury Rewards fail to enable a certain kind of high-autonomy, high-impact work. The Growth Working Group was the first Index Coop-created solution to this problem.
The core questions I’m thinking about when it comes to empowering high-impact contributors include:
- How do we remain fluid while we learn how to best run the Coop?
- How do we empower more leaders to step up in response to community needs?
- Who makes what decisions?
- How are they held accountable?
- How do we enable community members to answer: a) What should I work on? b) How do I know my work will be used? c) How do I know my work will make an impact? d) Will I be compensated for my work? How?
One model that continues to pop up as an answer is “working groups.” This model is both validated outside of the Coop and battle-tested within the Coop by the Growth Working Group. Broadly speaking, this structure has answered many of those questions.
Iterating on this structure so that others can take on high-impact/high-autonomy work is one of my focus areas right now.
My intended next step is to share for feedback a rough outline on how we can scale working groups.