The Fourth Mistake

Measure the wrong things

Eric Ries coined the concept of vanity metrics. These are the metrics that make you feel good but are useless. In the business world, vanity metrics are the equivalent of an athlete measuring the size of their biceps or their percentage of body fat.

At all times, the product manager should know what the key metrics are that determine the progress and success of the product and how their experiments will affect those metrics.

There is a key mistake made by many established companies. These companies measure the success of innovation with the same parameters that measure the normal operation of the business.

Later in the lesson on innovation accounting, this key mistake will be discussed.