Leading vs. Lagging Indicators
Revenues, margins, and market share are lagging indicators – once
they’re reported, it’s too late to do anything about them.
Your ScoreCard should contain a healthy selection of leading indicators
that give you early warning about where you’re lagging indicators
will be 2, 3 or 6 months from now. Compare:
- Support Costs
- New Customers
- Orders, Forecasts
- % Revenue From Recent (Higher Margin) Releases
- Defect Densities
in First Customer Shipments
- New Customer Visits, Demos, Proposals
ScoreCard Partners leads a creative search in your company for indicators
that tell you where you’re headed in pivotal performance areas.
You need both leading and lagging metrics in your ScoreCard – we
help you balance the two.
You also need a balance between Strategic,
Operational and Problem-Oriented metrics.