FREE STRATEGY TEMPLATE 4: LEAD MEASURES

//FREE STRATEGY TEMPLATE 4: LEAD MEASURES
FREE STRATEGY TEMPLATE 4: LEAD MEASURES2016-11-18T10:03:55+00:00

Why the lead measures and more detail on what they are – “if you have come this far you may now be able to give your own example of processes where you have clear outcomes expected and now you know what activities will produce those outcomes and how you can measure whether these are being carried out or not

The key to great strategy is to focus the critical mass of resources on the critical mass of opportunities.

Great teams invest their best efforts in those few activities that have the most impact on their Wildly Important Goals.

These are lead measures.

This insight is so crucial and so distinctive, yet so little understood that we call it the secret of excellence in execution.

Unlike lag measures, which tell you if you have achieved your goal, lead measures tell you if you are likely to achieve your goal.

You will use lead measures to track those activi­ties that have the highest leverage on the Wildly Important Goal.

Lead measures must be both predictive of achieving the WIG and influence able by the team, as these examples show:

 

Great teams invest their best efforts in those few activities that have the most impact on their Wildly Important Goals.

These are lead measures.

This insight is so crucial and so distinctive, yet so little understood that we call it the secret of excellence in execution.

Unlike lag measures, which tell you if you have achieved your goal, lead measures tell you if you are likely to achieve your goal.

You will use lead measures to track those activi­ties that have the highest leverage on the Wildly Important Goal.

Lead measures must be both predictive of achieving the WIG and influence able by the team, as these examples show:

 

team lag measure lead measure
hospital quality improvement team decrease mortality rate in the hospital from 4% to 2% this year. evaluate susceptible patients twice a day against pneumonia prevention protocols
shipping company dispatching team reduce trucking costs by 12% this quarter ensure 90%of all trips are with fully loaded trucks
restaurant increase average check amount by 10% by year end. suggest the specialty cocktail to 90% of all tables.

 

 

If our Wildly Important Goal is to increase revenue by year end we may suggest the following lead activities:

  • increase the number of visits we conduct
  • develop contacts at new local corporations
  • explore additional opportunities with current clients
  • attend trade shows for corporate events
  • develop and implement new marketing campaigns
  • improve our banqueting food options
  • upsell our premium package
  • upsell our alternative package
  • generate more high quality proposals
  • join relevant associations and go to the meetings
  • contact former clients, lost to other providers and win them back

 

Lead measures can be counterintuitive. Most leaders focus on lag measures, the bottom line results that ultimately matter. This focus is only natural. But you cannot act on a lag measure because it’s in the past.

Lead measures are hard to keep track of. They are measures of new and different behaviours, and tracking behaviours is much harder than tracking results. Often, there is no readily available system for tracking lead measures, so you might have to invent such a system.

Lead measures often look too simple. They demand a precise focus on a certain behaviour that might look insignificant (although it isn’t), particularly to those outside the team.

For example, a retail store chose this lead measure for driving sales: Limit out of stocks on top items to twenty or fewer per week. Can this very common measure really make an important difference? And shouldn’t they be doing that already? But if this simple lever is applied inconsistently, customers who can’t find what they want and will not return.

Often, lead measures simply close the gap between knowing what to do and doing it. Just as a simple lever can move a big rock, a good lead measure provides powerful leverage.

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