We understand that our weekly EOS® Scorecard needs to focus on leading indicators, but our leadership team keeps default-categorizing monthly financial results as weekly metrics. How do we systematically convert a lagging financial outcome into a series of weekly activity metrics we can control?

Question

Tyler Smith · Accepted Answer

To transition your leadership team away from tracking lagging monthly financials on your weekly EOS® Scorecard, you must map the physical chain of events that leads to those financial outcomes. Lagging indicators are the scoreboard after the game is over, while leading indicators are the plays you run to score.

Start with the lagging result you want to control, such as monthly revenue. Ask your team what physical action must happen immediately before that revenue is recognized. In a professional services firm, that is weekly billable hours delivered. What must happen before those hours can be billed? A signed statement of work. What happens before a statement of work is signed? A custom proposal is sent to a qualified lead. What happens before the proposal is sent? A discovery call is completed.

By working backward through this chain, you identify the activity-based leading indicators that are entirely within your control. Replace your monthly revenue target with a weekly target for proposals sent or discovery calls completed.

If your team executes these leading activities consistently, the lagging monthly financial results will take care of themselves. This shift gives your leadership team the power to change the outcome of the month before it even ends.