What Are Input Metrics

In this lesson, we explore what input metrics are, why they matter, and how shifting our focus from outputs to controllable inputs transformed the way we operated at Amazon. We learned—sometimes the hard way—that sustainable success comes not from chasing end results, but from rigorously managing the elements we directly control.

Key Takeaways:

• We learned to distinguish between input and output metrics: Outputs like revenue or share price are lagging indicators and largely outside our direct control. In contrast, input metrics—customer-facing and operational—are controllable levers that drive those outputs.
• We saw the importance of focusing on controllable inputs: By investing resources in areas like software, marketing, operations, or process improvements, we influenced outcomes in a predictable and sustainable way. Examples include inventory record accuracy and marketing spend.
• We realized the limitations of reactive output chasing: Trying to salvage quarterly financials with last-minute promotions often distracted us from what truly mattered—improving the customer experience.
• We began managing our business as a system of processes: We stopped reacting to fire drills and started proactively measuring and optimizing the activities (inputs) that lead to better long-term results.
• We gained a competitive edge through disciplined input tracking: While most teams naturally measure outputs, few rigorously track inputs. By doing so, we developed a significant operational advantage that helped Amazon scale sustainably.

To dive deeper into Input Metrics Mastery and learn more from Bill and Colin, follow these links:

• Take the full course at their website: https://workingbackwards.com/
• Buy the book: https://www.amazon.com/Working-Backwards-Insights-Stories-Secrets/dp/1250267595
• Bill's LinkedIn: https://www.linkedin.com/in/bill-carr/
• Colin's LinkedIn: https://www.linkedin.com/in/colinbryar/