Evaluating Execution Frameworks Part 1

Diana Yau’s Execution Framework

General Rule:

  • Understand the value of both sides

  • Impactful metrics

  • Know how to think (not just memorized)

Testing Product Thinking

The Prompt: How to measure success for Airbnb

Framework Tested:

Part 1: Key Fundamentals

  • Product: Platform to rent a place to stay

  • Users: Guests & Hosts

  • Value: Marketplace helps Guests, Hosts & Platform (airbnb)

Part 2: North Star Metric

  • intersection of the values

    • intersection = bookings

  • Total # of night’s booked

    • ‘# nights booked good for host & airbnb

Part 3: Break Down the North Star

  • Total # of nights booked

    • Total # of active guests * # of nights booked per guest

    • ‘# active listings > # of active hosts > # bookings per host

    • ‘# views of listings

    • ‘# of confirmed bookings

    • ‘# of cancelled bookings

    • # of active hosts > # of new hosts + existing + reserrected - churn

  • Healthy Ecosystem

    • macro & micro supply geater than demand by X:Y ratio

    • Quality Supply

    • Growing Demand from word of mouth

Part 4: Trade offs & Counter Metrics

  • Trade offs

    • hosts w/1 listing vs commerical hosts with multiple listings

  • Counter Metrics

    • avoid gaming

    • ‘# of listings with < 4 star reviews

    • ‘# reported listings (fraud or low quality)

Problems with common frameworks : Doesn’t show how you think.

  • Revenue - If not solving for users

  • Growth - not always right. If not taking the right action to monetize

  • Pirate AARRR - Awarness | Aquisition | Retention | Revenue | Referral

Source: Diana Yao

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Understanding Meta Products

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15 Common Execution Mistakes