Our scorecard is packed with metrics like closed sales and completed projects, but we still feel reactive. How do we shift our focus from lagging results to weekly leading indicators?

Question

Tyler Smith · Accepted Answer

Lagging indicators like closed sales and completed projects tell you what already happened. By the time these numbers turn red on your scorecard, the issue has already occurred, forcing you into a reactive position.

Shifting to Leading Indicators

To become proactive, you must identify the upstream activities that directly influence your lagging results.

• Sales Example:
• If your goal is three closed sales per week, analyze your sales pipeline.
• Determine the conversion rate from introductory calls to proposals.
• Determine the conversion rate from proposals to closed sales.
• Calculation: If one close requires three proposals, and five calls lead to one proposal, then you need fifteen introductory calls (3 proposals x 5 calls/proposal) to achieve one close. Therefore, your weekly leading indicator is fifteen introductory calls.

• Operations Example:
• Instead of just tracking completed projects (a lagging indicator), track weekly activities that predict project success.
• Examples include the weekly milestone completion rate or the number of active support tickets resolved within twenty-four hours.
• For long-term initiatives, breaking down projects into [weekly leading indicators for long-term projects](/qa/weekly-leading-indicators-for-long-term-projects) is crucial.

Scorecard Composition

A healthy weekly scorecard should consist of:

• Eighty percent leading indicators: These give you foresight and allow for timely adjustments.
• Twenty percent lagging indicators: These confirm the overall success of your upstream efforts.

When your [scorecard metrics](/qa/how-to-choose-five-fifteen-scorecard-metrics) are consistently green for leading indicators, your lagging results will naturally improve. This strategic shift provides a two to three-week warning track, enabling you to address performance issues before they negatively impact your bottom line.

Related questions

• [How do we review our weekly scorecard in under five minutes?](/qa/how-to-review-scorecard-under-five-minutes)
• [What concrete weekly measurables should we track for our accounting and IT seats to keep them accountable without resorting to subjective check the box metrics?](/qa/back-office-weekly-scorecard-measurables)
• [When is it appropriate to change a scorecard number, and how do we do it without losing historical consistency?](/qa/when-to-change-weekly-scorecard-metrics)
• [I want to prepare my business for a high-multiple valuation in the next three years using a regression-based enterprise value model. What specific operational data points do potential buyers actually look at weekly that I need to start tracking on my scorecard today?](/qa/weekly-scorecard-metrics-for-maximum-valuation)