Managing Your Business – Lead vs Lag Metrics

Most businesses think that measuring performance is all about looking at the history – things like number of leads received, conversion rate, sales figures and so on.

In reality, there are two kinds of metrics – the ones above are all known as Lag metrics, because they tell the story of what’s already happened.

If you want to manage your business for better performance, get in the habit of building in some Lead metrics.

Lead metrics are numbers that predict the future, rather than telling you a story of what’s already happened.

A salesperson making very few calls on clients and not following up on enquiries won’t make many sales.

Your business dashboard needs to show you these kinds of numbers to cover your financial position, your new customer acquisition, and the operational performance of your business.

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