One of the most eye-opening experiences I’ve had as a leader was when we shifted from only measuring sales revenue (a lagging indicator) to also tracking early activity (leading indicators). We began monitoring things like calls made, proposals delivered, and follow-up meetings scheduled. Suddenly, our weekly conversations changed. Instead of waiting until the end of the month to see if we hit the number, we could see in real time whether our pipeline was strong or weak.
This shift created energy in the team. People could connect their daily actions to the eventual results. As we spread the idea across the company leaders saw that investing in training hours today would influence customer satisfaction down the road. They realized that taking care of preventive maintenance would reduce downtime next quarter.
That’s the power of balancing measures. Lagging indicators tell you where you’ve been. Leading indicators tell you where you’re going. Teams that use both don’t just react to results — they actively shape them.
Two Simple Practices to Start Today:
- Identify one leading indicator that matters to your team (something you can measure weekly that points to future success).
- Pair it with one lagging indicator (an outcome that reflects the end result). Track both consistently and discuss them together.