How to use the metrics tree
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The metrics tree is a great tool that allows the entrepreneur to focus on the really important processes that need to be improved at the moment.
However, working with unit economics requires the use of several other tools at the same time, namely, unit economics for linking metrics and Goldratt's theory of constraints for finding growth points.
The general algorithm for using the metrics tree is as follows: we calculate unit economics for the current point in time; using Goldratt's theory of constraints we find a growth point, a unit economics metric, the improvement of which will have the greatest effect on the target given the current constraints in the business; on the metrics tree we find the product metrics associated with the growth point; we put forward hypotheses for improving processes that are associated with these product metrics; we conduct experiments, collect the values of atomic metrics and calculate the values of unit economics from them.
This algorithm will allow us to quickly and accurately find the processes that need to be improved at a given moment in the business, and to do it with the greatest efficiency.
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