Lead and Lag Metrics: A Simple Example
It’s Boston Marathon weekend. So, for me that means flying to Boston and finding out what the 1200 km and 100 hours of training this year will add up to – to see what my final result is. Fortunately, I don’t feel like I am completely in the dark; here’s why.
Understanding and using both lead and lag metrics are a huge unlock in your management style and the results you achieve, but the concept isn’t always easy to grasp, particularly for new or growing managers. When you build lead metrics into your weekly conversations you start talking about and acting on the work that will move the needle in the quarter. If you only manage to lag metrics, you effectively wait until the end of the cycle, or the completion of the initiative to see how you have done. While the final score is important, relying solely on this in your management model doesn’t give you the information you need week over week to make informed decisions about your resources or focus.
Thinking about management ideas in terms of personal performance helps me understand and implement them. I also really do use the same concept for running. I am going to share an example of lead and lag metrics based on training for and running a marathon.
First, this is what an Objective and set of Key Results might look like for running a marathon. Intentionally with only lag metrics.
Objective: Speed through the marathon in record time.
The Key Results might look something like this:
Complete the marathon.
Run 3 hours 30 minutes.
Qualify for the Boston Marathon.
Okay, great. We have somewhat measurable results that we can aim for. The issue is that we have zero idea if we will achieve this until the day of the marathon. The results are ‘lagging’, they tell us how we did after the fact – not if we are going to make it.
Let’s take that same Objective, Speed through the marathon in record time. But this time change the Key Results (KRs) to be leading.
Complete 15 weekly long runs ranging from 13 to 24 miles.
Average weekly mileage of 45 miles, varying from 35 to 60, over a 15-week plan.
Complete 15 tempo sessions to build speed.
Now I have very specific and measurable actions to take every week and each day. I focus on the progress, and I know instantly if I am off track. Importantly, I know in time to make changes and shift my approach or even expectations.
Not everything is within your control, but focusing on what is, and making sure you make progress on those things, sets you up for success.
It is easy to apply this to a function or team. Let’s take a new product launch for example:
Lag:
Achieve 5% market share within one year
10,000 units sold, within the first three months after launch
Increase social media followers by 3000
Receive a minimum user satisfaction rating of 4.5/5 within the first six months of launch
Lead:
200 conversations with ICP by end of quarter
Send 50 proposals by end of <Month>
20 industry experts share launch assets on social media
Conduct usability tests with at least 100 users to identify potential improvements three months before launch
In reality, it is important to have and manage to both lead and lag metrics. I really do care about the final result – actually in truth it’s the only thing I really care about, both in Boston and at the end of the quarter. But it is impossible to manage successfully and reliably to only lagging metrics – it leaves far too much unknown.
I owe this learning to Deidre Paknad, WorkBoard CEO who, for each quarter of the 3 years I have been at WorkBoard, has questioned my OKRs, asking: What are these driving? Are they leading indicators? And to Patrick Thompson, CIO, and Chief Transformation Officer, most recently at Albemarle during their high-growth phase of tripling revenue from $3 billion to $9 billion. Patrick is an operating master who focuses teams weekly on the leading indicators during the ‘52-week march’.