Sidki.com » Leading VS Trailing KPIs

🎯 I met with a frustrated early stage founder who was struggling to hit his quarterly targets.

"I track revenue, profit margins, and customer churn religiously," he said, "but I don't feel I am monitoring my business correctly"

I drew two circles on his whiteboard:

Circle 1: "Lagging" and put his KPIs of this type (almost all of his KPIs were there)

Circle 2: "Leading" and it had only one tracked KPI

"Think of it like your health," I explained. "Weight is a lagging indicator - you see results after the fact. Daily steps and calories are leading indicators - they predict future outcomes."

His eyes lit up. 🔥

We then built his new KPI Scorecard (EOS style):

Lagging: Revenue, Profit, Customer Satisfaction

Leading: • Sales calls/week • Proposal response time • Customer support response rate • Employee engagement scores

The magic happens when you balance both:

Lagging KPIs tell you if you won/lost

Leading KPIs tell you if you're likely to win/lose

💡 Pro tip: Aim for a 60/40 split favoring leading indicators in your scorecard. They're your early warning system.

What leading indicators are you tracking in your business? Share your thoughts in the comments below! Let's learn from each other. 👇

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