We are looking at our weekly Scorecard and realizing our metrics are mostly trailing indicators that tell us what happened last month instead of what will happen next month. How do we convert these lagging indicators into true, predictive leading indicators that give our leadership team a clear window into the future?
To build a predictive Scorecard, you must stop tracking results and start tracking behaviors. A lagging indicator, like revenue or signed contracts, tells you what happened yesterday. It is a rearview mirror metric. A leading indicator, like discovery calls scheduled or outbound proposals sent, tells you what will happen tomorrow.
To convert your lagging indicators, work backward from the final result. If your goal is a specific dollar amount of new monthly recurring revenue, identify the exact sequence of human behaviors that generates that revenue. In most sales pipelines, that looks like qualified leads generated, initial meetings booked, and formal proposals delivered.
If you hit your targets for those three activity metrics every week, the revenue takes care of itself. On your weekly Scorecard, replace revenue targets with activity targets. If you keep those leading metrics green, your lagging results will follow.
This shift changes your leadership team meetings from a post-mortem review to a proactive coaching session. You will spot pipeline dry spells weeks before they hit your bank account.
Category: Scorecards & Data