Up-Close with Chin Teik: Re-Think Series
Welcome to Up-Close with Chin Teik: Re-Think Series. This series will contain episodes to allow you to #pause with me, allow me to share with you my #language and hope that you will be able to #Re-Think your current paradigm, your language and the possibilities!
I am a senior executive Neuroleadership coach, an action-learning facilitator and business/process consultant. Neuroleadership is using science to transform how people lead-manage self, lead-manage others, lead-manager organizations.
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Up-Close with Chin Teik: Re-Think Series
Up-Close with Chin Teik: The Power of Leading Indicators
Up-Close with Chin Teik: The Power of Leading Indicators
Today, most organizations are focusing on lag outcomes. It's like standing on the weighing scale and looking at the scale daily, hoping for the needle to move without any actions taken. If they want to be consistent in their performance, then I recommend to look at leading indicators. Regular exercise, diet, sleep are the leading indicators that will move the lag outcomes on weight management.
- Lag measures tell you if you have achieved the goal and often it is too late; hard to make up for time lost with regards to sales and operations
- Leading measures tell you if you are likely to achieve the goal and thus shapes how you can impact success
- Shift from rear view perspective (how did I do?) to current and actionable view of 'how am I doing?' that truly fuels execution
While it will require more cognitive effort to develop leading indicators, it will be well worth it as they provide predictive success.
The Power of Leading Indicators
Today, most organizations’ focus is on lag indicators. My advice to them is don’t because lag indicators mean it is too late! The principle is that data 24 hours late is useless because it is often hard to make up for the gap in time.
While a lag measure tells you if you've achieved the goal, a lead measure tells you if you are likely to achieve the goal. Lead measures allow you to shift the focus from the rear-view perspective of “how did I do?” (1 month or 1 quarter or 1 year later) to the current and actionable view of “how am I doing?” (by the hour) that truly fuel execution. Lead Measures are the highest leverage actions or activities that can accomplish goals. Lead measures can influence the chance of success in achieving your goal.
Self-monitoring a lead measure provides data for action, getting back on track or asking for help to remove barriers.
My observation in working with my client organizations is that lag indicators are easier to measure and require less cognitive effort because of the expedience and experience biases. Leading indicators are always more challenging to determine and require System 2 thinking - deep and slow. However, developing leading indicators are worth the time and effort because they provide predictive execution. It is the first habit of individual breakthrough performance. 3 habits: 1. Executing on leading indicators to achieve lag outcomes, 2. Visual self-monitoring performance feedback, and 3. Control of resources to get back on track
Examples
· Engaged employees are leading indicators of customer satisfaction
· Capable process (Six Sigma) is a leading indicator of cost efficiency (reduces rework and reduces lead time)
· Number of cold calls per day or percent of conversion per day are leading indicators to the revenue lag outcome
· Working out 3 times a week, a low carb diet or 3 times a week intermittent fasting are leading indicators to weight management (lag outcome)
Thank you for pausing and listening to my language. I hope that you will consider the language of lead measures or leading indicators for the organization as well as a prioritized habit for focused execution with a higher confidence of achieving the lag outcomes.
Thank you and be well.