Crafting Effective Lead and Lag Measures
December 9, 2025
Companies often struggle to measure what really matters. Too many metrics become noise, and without clarity, teams get stuck reacting to symptoms rather than solving root causes. A strong execution system needs the right balance of lead and lag measures to focus attention and guide action.
Lag vs. Lead: Understanding the Difference
Lag measures are the outcomes you want to achieve. They show whether you’re winning or losing. Think: revenue, profit, customer satisfaction, on-time delivery.
The problem is that lag measures are historical. They’re results of actions already taken. You can’t influence them directly today. They’re important, but not sufficient. Without the ability to track progress, you get to the end of the period that you set to accomplish your goal and just state that you did not complete it.
Lead measures, by contrast, are predictive and influenceable. They are the daily or weekly actions that drive lag results. Think: number of sales calls, NPS follow-ups completed, cycle time per task. With good lead measures, you are able to see throughout time if you are engaging in activities that will lead to accomplishing the goal. This gives you the ability to pivot, increase effort, or take other steps that can increase the probability of success.
Great execution requires both lag and lead measures. Lag measures track success; lead measures drive it.
Why Lead Measures Are Harder to Choose (But More Valuable)
Many teams default to lag measures because they’re familiar and easier to measure. But lagging metrics often come too late to act on. That’s why teams committed to better execution must spend time identifying meaningful lead indicators.
A good lead measure is:
- Influenceable: the team can impact it directly
- Predictive: it correlates strongly with the desired result
- Timely: it’s measured frequently enough to course correct
- Simple: it’s easy to understand and track
Example: Sales Team
- Lag measure: Closed-won revenue
- Lead measures: Discovery calls booked, proposals sent, average response time to inquiries
Shifting focus to the activities that lead to results improves control and coaching. It also increases momentum and motivation as teams can see daily progress.
Additional Examples Across Departments
Customer Success
- Lag: Net Promoter Score (NPS), churn rate
- Lead: Onboarding tasks completed within the first week, number of proactive check-ins made per customer
Operations
- Lag: On-time delivery rate, defect rate
- Lead: Daily production line audits completed, preventive maintenance tasks performed
Marketing
- Lag: Marketing qualified leads (MQLs), campaign ROI
- Lead: Number of campaigns launched per month, content pieces published weekly
Finance
- Lag: Cash flow, budget variance
- Lead: Weekly forecast accuracy reviews, AR follow-ups performed within 7 days
These examples demonstrate how lead and lag measures apply across business units. Identifying the right few lead measures makes team performance more actionable and visible.
Making It Work: Best Practices
- Start with the goal: What result are you trying to achieve? That’s your lag measure.
- Work backward: Ask, “What are the key behaviors that lead to this result?”
- Limit your focus: Two to three lead measures per goal is usually enough.
- Assign ownership: Every lead and lag measure should have a clear owner.
- Review regularly: Weekly rhythms create visibility, drive accountability, and allow for adjustments.
- Celebrate lead progress: Recognize team members who are consistent with lead actions, even if results lag.
Strategic Implications
Using lead and lag measures correctly changes how leaders manage. It shifts the focus from blaming outcomes to coaching behaviors. It also strengthens cross-functional alignment, since teams must clarify how their daily actions connect to company-wide goals.
This practice is a core discipline of the Scaling Up Execution framework, reinforcing the rhythm of metrics, meetings, and accountability. It also reflects broader principles seen in The 4 Disciplines of Execution, which emphasizes the importance of acting on lead measures to create lasting performance change. Almost all execution frameworks include these concepts as pivotal to successful execution!
Final Thought
Measurement isn’t just reporting. It’s behavior shaping. When a company builds scoreboards around the right lead and lag measures, they create focus, clarity, and momentum. And with momentum, execution follows.