Leading Indicator Systems

How are leading indicators different than traditional business metrics?

Know the future. For generations, businesses have built and refined sophisticated systems to track results: revenue trends, cost per unit, profit and loss. Because these measurements define things that have already happened, we can think of them as very elaborate rearview mirrors. No matter how accurate they are, they simply don’t tell us what’s ahead.

Leading indicators are just the opposite. They are measurements that show what to expect around the approaching bend. Leading indicators are the clear windshield and precise dashboard for business going forward. Leading indicators tell us what is working, what is breaking, what needs immediate attention, what should be watched for signs of trouble as the ride continues. These together illuminate the true state of the key drivers of business success:

Market needs and requirements
Value proposition
Plans, strategies, and goals
Products and services
Human capital
Leadership
Customer relationships
Process efficiency

Project and performance management
Competitiveness
Organizational values and diversity
Communication and information technology
Policies and procedures
Infrastructure and organizational design
Supply chain relationships

While many organizations try to predict what will happen in these critical areas by scrutinizing what they see in the rearview mirror, the answers typically can’t be found there. Future performance can only be systematically and accurately measured by tapping the collective intelligence of employees, customers, prospects, and suppliers.

That’s where Leading Indicator Systems comes in.

Human Resource, Sales & Marketing Professionals: How can LIS help you measure satisfaction and track performance?

Consulting & Market Research Firms: How can LIS support your infrastructure need?

Survey and Assessment Systems: How do LIS solutions relieve pain and increase value?