Lead vs. Lag Measures

How Proactive Action Drives Real Results

In business and performance management, your ability to track the right metrics can make or break your success. But not all metrics are created equal. Understanding the difference between lead and lag measures can mean the difference between steering toward your goals or realizing—too late—that you missed your exit three miles ago.

Understanding Lag Measures in Business

Lag measures are the results of past actions. They tell you what has already happened but don’t influence what happens next. Common examples include:

What we’re seeing now is a correction—businesses adjusting to an economy where capital is tightening, customer spending is shifting, and efficiency is being scrutinized like never before. The organizations that handle this transition with foresight will not only survive but position themselves for long-term resilience.

Revenue growth
Customer satisfaction scores
Employee turnover rates
Quarterly profit margins

While these metrics are essential for assessing business performance, they come with a critical limitation: they’re reactive. By the time you analyze them, the opportunity to make meaningful changes has already passed. It’s like realizing your budget is off—after the quarter has already ended.

What Are Lead Measures and Why Do They Matter?

Lead measures are predictive and influenceable. They represent the business activities that drive better outcomes over time. When tracked and improved, they shape the lag measures you care about most. For example:

Number of outbound sales calls made per day (leading to increased revenue)
Hours of employee training completed (leading to stronger performance and retention)
Customer follow-ups within 24 hours (leading to higher satisfaction scores)
Preventative maintenance checks performed (leading to lower equipment downtime)

Unlike lag measures, lead measures focus on proactive business strategies—actions within your control that directly contribute to better results. It’s the difference between going to the gym and just paying for the membership.

Why Lead Measures Drive Business Success

Focusing on lead measures empowers businesses to take proactive action. Here’s why they’re critical to sustainable performance:

Control and Influence – You can directly impact lead measures through daily operations. Lag measures? Those are just outcomes. Think of flossing: small habit, major impact.
Predictive Power – Lead metrics help identify patterns and risks early—like spotting your gas light before you’re stuck on the highway.
Immediate Feedback – They provide faster insight into whether your business strategies are working—no need to wait until the end of the quarter.
Behavioral Change – Tracking lead measures helps teams build consistent habits that lead to long-term results—like practicing free throws instead of hoping for game-day miracles.

Implementing Lead Measures in Your Business

To make the most of lead measures and improve your business outcomes, follow these steps:

Identify Your Goals – Clearly define what you want to achieve (your lag measure).
Determine Key Drivers – Identify the specific, measurable actions that will move the needle.
Make Them Trackable – Lead measures should be quantifiable and reviewed regularly.
Monitor and Adjust – If your lead measure is eating healthy meals but pizza keeps showing up three nights a week, it might be time to revisit your strategy.

The Bottom Line

Businesses that focus only on lag measures risk staying stuck in a cycle of reaction. It’s like realizing you should’ve studied—after failing the test. By prioritizing lead measures, businesses across North America can take control, drive stronger performance, and stay ahead of the curve. Success comes not just from knowing what happened, but from knowing what to do next.