Our weekly Scorecard is populated with backward-looking financial metrics, which means we only realize we missed our goals after the quarter is over. How do we identify and track leading indicators that allow us to predict and correct performance issues before they impact our bottom line?

Question

Tyler Smith · Accepted Answer

A weekly Scorecard that only tracks backward-looking financial metrics is like driving a car while looking solely in the rearview mirror. To build an agile, predictable operation, you must populate your Scorecard with activity-based leading indicators.

Leading indicators measure the inputs that directly predict future results. For example, instead of tracking closed revenue, track the number of outbound sales calls made, discovery meetings scheduled, or proposals submitted. If these leading metrics are green, you can be highly confident your future revenue will hit the target.

To identify these metrics for your Scorecard, work backward from your 1-Year Plan. Ask your department heads: What weekly activities must happen with absolute consistency to guarantee we achieve our quarterly and annual goals?

Once identified, assign every single metric on the Scorecard to a specific seat on your Accountability Chart. The owner of that seat must have the GWC™ to manage that metric and must be fully accountable for keeping it in the green.

By tracking these proactive activities weekly, you can spot trends and catch problems before they turn into major issues. This allows you to run your weekly Level 10 Meeting™ with foresight, correcting off-track activities long before they impact your financial statements.