Building metrics that actually work

In the rapidly evolving tech landscape, effective metrics aren't just numbers—they're strategic instruments that drive decision-making and organizational success. David Karam, formerly of Google Search and now with Pi Labs, delivers a comprehensive workshop that unpacks the science and art of creating meaningful metrics systems. His approach goes beyond surface-level analytics, addressing how companies can develop measurement frameworks that genuinely support growth while avoiding common pitfalls that lead to counterproductive behaviors.

Key insights from Karam's workshop:

• Metrics should tell a complete story – Isolated metrics often mislead; the most effective measurement systems connect multiple metrics that collectively reflect both customer value and business outcomes.

• Two-sided markets require balanced measurement – For platforms serving different user groups (like buyers and sellers), metrics must capture value delivery across all constituencies to prevent lopsided optimization.

• Good metrics systems are designed to be "gaming-proof" – Thoughtfully constructed measurement frameworks include countervailing metrics that prevent teams from optimizing one dimension at the expense of another.

Expert Analysis

The most transformative takeaway from Karam's presentation is his framework for designing comprehensive metrics systems rather than relying on isolated KPIs. This insight matters tremendously as organizations increasingly face the "perverse incentives" problem—where narrow metrics drive behaviors that ultimately harm long-term business health.

This framework arrives at a critical inflection point in the business analytics world. As companies accumulate ever-larger volumes of data, the temptation to chase vanity metrics or optimization shortcuts has grown. Karam's systematic approach offers a corrective to this trend, emphasizing that metrics must capture complete value delivery stories rather than fragmentary signals.

Consider the cautionary tale of Wells Fargo's account scandal, where aggressive cross-selling metrics led employees to open millions of unauthorized accounts. This exemplifies precisely the kind of perverse incentive system Karam warns against—metrics that drive behavior directly contradicting the company's ultimate goals of building customer trust and delivering value.

Beyond the workshop: Building on Karam's principles

Karam's principles translate effectively beyond product metrics to broader organizational measurement. For instance, customer support teams traditionally measure success through resolution speed and customer satisfaction scores. However, a more comprehensive approach might also track problem recurrence rates and knowledge base