Unique Significance of the 4 Metrics

Q: I don't understand the difference between North Star, OKRs, KPIs etc. Are they all the same?

A: Although some use them interchangeably, they do have their own unique significance.

Let's say the product is a coast to coast road trip that 4 people are taking.

1. North star (NS):
The over-arching goal that everyone aims to achieve.

Ex: Reach New York from LA in 15 days with budget X.

Everyone in the car does their bit. A person driving the car, someone planning the itinerary, another managing lodging along the way etc.

All do their job to pursue the NS.

2. OKR
Objectives/Key Results assigned at a team or individual level. Objectives are the themes, KRs are SMART metrics that help us achieve them.

e.g.

Obj: Get to Arizona in 3 days.
KR1: Identify shortest path with fewest tolls.
KR2: Maintain avg speed of 100 kph.

3. Signals
A metric that isn't the goal but serves as a good indicator of system health.
Ex: Mileage: Distance achieved per liter.

4. KPIs
A significant signal worth tracking for a specific feature, campaign etc.
Ex: Planned lodging days, hotel cost vs. the budget

5. Vanity metrics
Hollow metric that have little impact on KPIs/North Star.
Ex: Avg RPM of the car. It may be slick but doesn't do much for the OKRs.