Leading vs. Lagging KPIs
The Secret to Mastering Growth
Most people focus only on the end results—when it’s already too late to change them. They look at revenue after the quarter is closed, churn rates after customers have left, and profit margins after the damage is done. But by then, the game is over.
The true masterminds know success isn’t about staring at the scoreboard—it’s about tracking what leads to the final score. This means identifying leading KPIs, the truth-telling metrics that predict the future, and watching them with the precision of a hawk soaring over the stunning fjords of Norway, eyes locked on its prey.
Think of it like a wheel, it’s all connected, what you do earlier (or not) leads to the results later…
What Are Leading KPIs?
Leading indicators measure what drives success before it happens. If you track these early and often, you can adjust your strategy in real time.
Examples of Leading KPIs:
Sales Calls Made → More outreach means higher conversion potential.
Number of Proposals Sent → More proposals increase the chance of closing deals.
Number of Accounts Contacted vs. Conversion Rate → Tracking outreach effectiveness.
Customer Success Calls Made → More engagement improves retention and satisfaction.
Satisfaction Surveys Completed → Early feedback helps prevent churn.
Website Traffic & Lead Capture → More visits mean more potential clients.
Time from Lead to Cash Collected → The shorter, the better for cash flow.
Burn Rate → How fast you’re spending cash—critical for predicting financial runway.
What Are Lagging KPIs?
Lagging indicators measure past results—important but unchangeable. They show whether your strategies worked but offer no chance to fix things in real time.
Examples of Lagging KPIs:
Revenue Growth → Reflects past sales success.
Customer Retention Rate → Shows how well you kept customers.
Net Profit Margin → Indicates financial health.
Project Completion Rate → Measures past execution efficiency.
Customer Satisfaction Score (CSAT) → Shows how customers felt—after the fact.
Cash in the Bank → The ultimate scoreboard—your business’s survival metric.
The Boating Analogy: Too Late Is Always Too Late
In the boating world, there’s a saying: "Too early is never too early. Too late is always too late." A boat doesn’t have brakes—if you don’t slow the engine in time, you’ll overshoot your target and crash.
Now, apply that to business:
If you fail to track leading KPIs early, you’ll miss your revenue targets, burn through cash too fast, and run into financial trouble.
But if you monitor these indicators proactively, you can adjust course before it’s too late—ensuring smooth scaling, strong revenue, and a healthy cash flow.
Mastering Scale-Up Engineering Like a Pro
To win in business, you need to measure the right things at the right time. Master the art of leading KPIs, and you won’t just grow—you’ll engineer success. Nail this, and one day, you’ll be swimming in cash, cruising on your yacht, and (don’t forget) inviting me for the swim!
