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Picking Metrics and Setting Goals

I think people suck at picking metrics and setting goals. Why? Because they tend to pick metrics they can't actually impact and set goals that leave them feeling empty once they've achieved them. So, let's define some key terms and explore how we can do better.

Based on this youtube video

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Metrics: Leading vs Lagging

When I was at Facebook, we were taught about two types of metrics:

  • Lagging Metrics: The metrics you really give a shit about, but can't directly influence (like your weight, revenue, or daily active users).
  • Leading Metrics: Harder to measure, but you can directly influence them to drive those lagging metrics (like calories consumed/burned or process improvements).

The key is to focus on the leading metrics that will push you towards your goals. For example, if I want to lose weight:

  1. I gotta figure out my leading metrics (calories consumed/burned).
  2. I need to consistently measure and adjust these metrics to hit my lagging metric goal.

Goals: Process vs Outcome

Just like with metrics, there are two types of goals:

  • Outcome Goals: Tied to lagging metrics, and they often lead to feeling like shit once you've achieved them (like losing 10 pounds).
  • Process Goals: Tied to leading metrics, they create consistent habits that drive long-term success (like walking 10 minutes every day).

Process goals are where it's at because they:

  1. Are measurable and adjustable.
  2. Can be consistently performed.
  3. Naturally lead to the outcomes you want when you stick to them.

Examples

  • Pottery: When I started pottery, I had grand ideas of making kitchen sets and cups for my friends. But setting outcome goals like that is a recipe for disappointment. Instead, my pottery sensei told me to set a process goal of using 20 pounds of clay per session. This removed the pressure and allowed me to grow.
  • UFC Fighter: Successful champions focus on the process (training consistently) rather than the outcome (winning the belt). The ones who get depressed are the ones who only focus on the outcome.
  • Business: I used to set outcome goals, like making a million dollars a year. But once I hit that goal, I'd just feel empty. Now, I set process goals, like increasing my fees by 10% per client or sending 10 emails to get 1 client. This creates a clear roadmap for success.

The Bottom Line

  1. Focus on leading metrics that drive lagging metrics.
  2. Set process goals tied to leading metrics for consistent growth.
  3. Enjoy the journey by finding a schedule that works for you.

By shifting your focus to process goals and leading metrics, you can create a more fulfilling and successful path towards the outcomes you want. Trust me, once you start thinking this way, you'll never go back to those bullshit outcome goals again.

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