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