Our weekly Scorecard feels useless because we are only tracking lagging indicators like revenue and profit, which we cannot change in real time. How do we identify the right leading indicators that actually predict our weekly performance?

Question

Tyler Smith · Accepted Answer

If your Scorecard is filled with lagging indicators, you are driving your business by looking in the rearview mirror. By the time you see that your monthly revenue is low, the damage is already done. You cannot fix last month's numbers.

To build a predictive Scorecard, you must identify leading indicators. These are the weekly activities that, if completed consistently, guarantee your lagging results. Every department has these operational inputs.

To find your leading indicators, work backward from your goals. For example, if your goal is to close ten new deals a month, look at what actions must happen first:

- How many outbound sales calls must be made?
- How many initial discovery meetings must be booked?
- How many proposals must be sent?

Those weekly activities are your leading indicators. If you track proposal volume on your Scorecard, a drop in that number this week warns you that revenue will drop four weeks from now. This gives you time to course-correct immediately during your Level 10 Meeting.

The same applies to operations. Instead of tracking late deliveries, track the percentage of raw materials received on time or weekly production capacity.

Your Scorecard should contain twelve to fifteen high-level weekly numbers. If you focus on tracking the active behaviors that drive your results, you will gain total visibility and control over your business outcomes.