This is also the reason why Google didn't scale up their tranformer model although their researchers published the paper and shelfed it. KPI-driven Google has the greatest blindspot but innovation often comes without metrics. With a clear founder's mode, OpenAI's result-driven, intuition-driven mindset led them to a great product, ChatGPT.
Thanks Todd. feels counter-intuitive at first but they way I understood it was don't let metrics be the only way you understand what's going on. A question, you said that companies that reduce their metrics rely on understanding customers and trends more directly. Have they put processes in place for that? for example have they made their developers get in direct contact with customers or as in Airbnb stroy, have they made their employees use their own products? or did it come naturally? I mean they did not make people change their processes , but people automatically tried to learn more about customers and trends once their dashboards turned off?
Javad, I didn’t come across much concrete information on what companies are doing to address this issue. There was some soft discussion around the idea that a “founder’s mindset” helps solve the problem. While it wasn’t very detailed, there’s something to the notion that founders have a kind of sixth sense for identifying when something is off in the business and can quickly rally focus around it. This might stem from their deep connection to early customers or their heightened awareness of competitive threats.
For example, Amazon is well-known for its weekly review of approximately 700 metrics across the entire business by senior management. Over time, managers develop an intuition for subtle changes in the data, which helps them identify potential issues and areas to address.
That said, I don’t think this is a binary process—it’s not a matter of simply having or not having this capability. It’s more of a gradual, evolving approach. However, there’s a risk that companies can become overly focused on metrics and end up missing the bigger picture or losing sight of strategic priorities.
Thanks for the thoughtful comment and taking the time to read. I really appreciate it.
"Basecamp deleted their analytics tools. No A/B tests, engagement metrics, or funnel optimization. The following year, their revenue doubled.
Notion reached a $10 billion valuation while avoiding most traditional SaaS metrics.
The founders of these companies aren't anti-data zealots. They've learned something counterintuitive: Sometimes you understand more by measuring less."
Thanks Todd for highlighting this trend.
I can't help feeling that this is just another example in a grander "Newness to Nowness" cycle / framework, and @tombutlerbowdon I hope you might provide the linkages?
1. Some "newness" knocks on the door, usually of an open mind (entrepreneur, philosopher, scientist, guru, Founding Fathers, guy next door)
2. If acted upon, this can give rise to something new "in the real world", perhaps quickly (a startup or fad) or slowly and painfully (Copernicus / Galileo)
3. The newness may get institutionalised / "constitutionalised" into "nowness" to provide (necessary?) order and continuity (life beyond the Founders)
4. The nowness gets "industrialised" by individuals, bureaucrats, consultants, suits, money-men, politicians, governments, etc, to the extent that this will serve their own interests. Enter stage left the Metrics Movement? E.g. See my post on the "Startup Industrial Complex" commenting on another of Todd's articles on the Startup Storytelling Ecosystem - https://lnkd.in/dkjUdjXA
By the way see the joy of the eDreams story in my post referencing The VC Corner's series of articles showing how this early internet startup seems to have dodged this bullet - https://lnkd.in/dZ4YRgwg
5. Ossification and the Loss of Self. The original Life-Force has mostly left, and a shell remains. Intuition has been crowded-out by systematisation. People have forgotten the point of it all, and follow the Metric (Letter of the Law; the "Mind of Things") rather than the underlying Goal (Spirit of the Law; the "Heart of Things"). Depending on the strength of the institution, it could continue in its lifeless form for centuries. This perhaps is where leaders must intentionally craft informal feedback loops, because the official metrics will be great.
6. (Re-)Awakening. This I feel is where Todd's article fits in. And probably the Self-Help books and Movement. Prophets. Revivals. A sudden or gradual moment of enlightenment reminds us (probably the Source of 1 above) that we have forgotten the WHY. The quiet voice of Conscience, even. Newness energy knocking on the door again. This I feel is the moment Todd refers to when referencing Brian Chesky that even though "their metrics showed perfect growth in 2011, with every KPI trending up. But something felt off."
7. Truth-Telling, Free Will and CHOICE. This stage is critical, as if the groundswell is missed, or perceived Costs outweigh the Benefits, you / the institution will stay comfortably self-satisfied in step 5. Your ossification could intensify against the forces of correction. It’s a tough stage. Kairos. Clammering Egos swell up all over the place. Reference my post on Todd’s “Anti-Shackleton Manifesto” - https://www.linkedin.com/posts/marc-fx-johnson_the-anti-shackleton-manifesto-how-modern-activity-7271404328282718209-laJw
Mostly, humility will be required to see you through. Grace. Some repentance, even.
And so we cycle back to step 1, as a breath of fresh air (Spirit) blows through you / your organisation, revitalising you.
Thanks Marc for reading and the comment. Your "Newness to Nowness" cycle captures the pattern we're seeing in the metrics rebellion. Just as TikTok succeeded by breaking free from conventional metrics, your framework explains why organizations must periodically shed their measurement shells to rediscover their core purpose. Brian Chesky's intuitive realization at Airbnb exemplifies your Step 6 "(Re-)Awakening" - when leaders recognize that perfect metrics can mask fundamental disconnects from purpose and value.
Awesome Todd. Thanks for taking the time for your thoughtful reply. "Newness to Nowness" had been renting a small room in a corner of my brain for over 2 decades, and thanks to your post it decided for the first time to go for a walk outside.... 😊🙏
One of the best article i have read in a long time. A mind opener after 19 years in the testing industry.
Thank Alain for the comment. You officially made my day!!
This is also the reason why Google didn't scale up their tranformer model although their researchers published the paper and shelfed it. KPI-driven Google has the greatest blindspot but innovation often comes without metrics. With a clear founder's mode, OpenAI's result-driven, intuition-driven mindset led them to a great product, ChatGPT.
Well put Shawn. Do you know any larger companies that have keep that focus as they scaled?
I highly doubt it, especially in today’s competitive environment. Static metrics struggle to keep pace with rapid technological advancements.
I totally agree and couldn't think of anyone..
Thanks Todd. feels counter-intuitive at first but they way I understood it was don't let metrics be the only way you understand what's going on. A question, you said that companies that reduce their metrics rely on understanding customers and trends more directly. Have they put processes in place for that? for example have they made their developers get in direct contact with customers or as in Airbnb stroy, have they made their employees use their own products? or did it come naturally? I mean they did not make people change their processes , but people automatically tried to learn more about customers and trends once their dashboards turned off?
Javad, I didn’t come across much concrete information on what companies are doing to address this issue. There was some soft discussion around the idea that a “founder’s mindset” helps solve the problem. While it wasn’t very detailed, there’s something to the notion that founders have a kind of sixth sense for identifying when something is off in the business and can quickly rally focus around it. This might stem from their deep connection to early customers or their heightened awareness of competitive threats.
For example, Amazon is well-known for its weekly review of approximately 700 metrics across the entire business by senior management. Over time, managers develop an intuition for subtle changes in the data, which helps them identify potential issues and areas to address.
That said, I don’t think this is a binary process—it’s not a matter of simply having or not having this capability. It’s more of a gradual, evolving approach. However, there’s a risk that companies can become overly focused on metrics and end up missing the bigger picture or losing sight of strategic priorities.
Thanks for the thoughtful comment and taking the time to read. I really appreciate it.
thanks Todd. it makes sense. no amount of metrics can accurately model the real world.
Metric Mania and the Loss of Self
"Basecamp deleted their analytics tools. No A/B tests, engagement metrics, or funnel optimization. The following year, their revenue doubled.
Notion reached a $10 billion valuation while avoiding most traditional SaaS metrics.
The founders of these companies aren't anti-data zealots. They've learned something counterintuitive: Sometimes you understand more by measuring less."
Thanks Todd for highlighting this trend.
I can't help feeling that this is just another example in a grander "Newness to Nowness" cycle / framework, and @tombutlerbowdon I hope you might provide the linkages?
1. Some "newness" knocks on the door, usually of an open mind (entrepreneur, philosopher, scientist, guru, Founding Fathers, guy next door)
2. If acted upon, this can give rise to something new "in the real world", perhaps quickly (a startup or fad) or slowly and painfully (Copernicus / Galileo)
3. The newness may get institutionalised / "constitutionalised" into "nowness" to provide (necessary?) order and continuity (life beyond the Founders)
4. The nowness gets "industrialised" by individuals, bureaucrats, consultants, suits, money-men, politicians, governments, etc, to the extent that this will serve their own interests. Enter stage left the Metrics Movement? E.g. See my post on the "Startup Industrial Complex" commenting on another of Todd's articles on the Startup Storytelling Ecosystem - https://lnkd.in/dkjUdjXA
By the way see the joy of the eDreams story in my post referencing The VC Corner's series of articles showing how this early internet startup seems to have dodged this bullet - https://lnkd.in/dZ4YRgwg
5. Ossification and the Loss of Self. The original Life-Force has mostly left, and a shell remains. Intuition has been crowded-out by systematisation. People have forgotten the point of it all, and follow the Metric (Letter of the Law; the "Mind of Things") rather than the underlying Goal (Spirit of the Law; the "Heart of Things"). Depending on the strength of the institution, it could continue in its lifeless form for centuries. This perhaps is where leaders must intentionally craft informal feedback loops, because the official metrics will be great.
6. (Re-)Awakening. This I feel is where Todd's article fits in. And probably the Self-Help books and Movement. Prophets. Revivals. A sudden or gradual moment of enlightenment reminds us (probably the Source of 1 above) that we have forgotten the WHY. The quiet voice of Conscience, even. Newness energy knocking on the door again. This I feel is the moment Todd refers to when referencing Brian Chesky that even though "their metrics showed perfect growth in 2011, with every KPI trending up. But something felt off."
7. Truth-Telling, Free Will and CHOICE. This stage is critical, as if the groundswell is missed, or perceived Costs outweigh the Benefits, you / the institution will stay comfortably self-satisfied in step 5. Your ossification could intensify against the forces of correction. It’s a tough stage. Kairos. Clammering Egos swell up all over the place. Reference my post on Todd’s “Anti-Shackleton Manifesto” - https://www.linkedin.com/posts/marc-fx-johnson_the-anti-shackleton-manifesto-how-modern-activity-7271404328282718209-laJw
Mostly, humility will be required to see you through. Grace. Some repentance, even.
And so we cycle back to step 1, as a breath of fresh air (Spirit) blows through you / your organisation, revitalising you.
Thanks Marc for reading and the comment. Your "Newness to Nowness" cycle captures the pattern we're seeing in the metrics rebellion. Just as TikTok succeeded by breaking free from conventional metrics, your framework explains why organizations must periodically shed their measurement shells to rediscover their core purpose. Brian Chesky's intuitive realization at Airbnb exemplifies your Step 6 "(Re-)Awakening" - when leaders recognize that perfect metrics can mask fundamental disconnects from purpose and value.
Awesome Todd. Thanks for taking the time for your thoughtful reply. "Newness to Nowness" had been renting a small room in a corner of my brain for over 2 decades, and thanks to your post it decided for the first time to go for a walk outside.... 😊🙏