Our weekly Scorecard is full of trailing indicators that tell us what we did last week, which leaves us reacting to problems after they happen. How do we redesign our Scorecard to focus on leading indicators that predict our performance and keep us on track for our quarterly Rocks?

Question

Tyler Smith · Accepted Answer

Trailing indicators are like looking in the rearview mirror while driving. They tell you where you have been, but they cannot help you avoid the obstacle in front of you. To build a predictive Scorecard, you must identify the leading activities that generate your desired results. Start by looking at your quarterly Rocks and annual goals. Work backward from those outcomes to identify the weekly activities required to achieve them. For example, if your goal is a specific revenue target, trailing indicators are closed deals and invoiced revenue. The leading indicators are the number of outbound sales calls, discovery meetings scheduled, and proposals sent this week. If those weekly leading numbers are on track, you can confidently predict that your revenue goals will be met. Every seat on your Accountability Chart should have at least one measurable that they own and track weekly. These numbers must be activity based, completely objective, and easily measured. When your Scorecard is populated with these forward looking metrics, you can spot trends and identify issues three to four weeks before they impact your financial statements. This gives your leadership team the runway needed to run IDS and solve problems proactively during your Level 10 Meeting.