Most of us in business tend to focus – maybe even obsess – over our P&Ls and Balance Sheets. However, both of those are LAGGING INDICATORS. Once we have them in hand, there is nothing we can do to improve the numbers. They are history.
The trick is in developing your abilities to identify and measure LEADING INDICATORS so you can more accurately predict your outcomes and make necessary adjustments to reach your goals – financial or otherwise.
Watch our blog this week as Wayne talks about the importance of focusing on processes instead of outcomes to improve execution and achieve desired success.
We’d love to hear what leading indicators you are using in your organizations. Please share your thoughts in the comments section. Thank you.
W. Edwards Deming taught the Japanese auto makers this in the 1950’s. When the American car makers were obsessed with marketing to and influencing the mindset of consumers, the Japanese auto makers were focused exclusively on the quality of the process knowing that the product outcome would then take care of itself. As I was driving my 2002 Nissan Frontier back from Houston to Dallas last evening, I was reflecting on the legacy of Deming and the fact my auto has given me 18 years and over 200,000 miles of trouble-free driving. I purchased my last American car in 1983 and poor quality drove me away…forever.
Deming tried to teach the American makers the same thing… They just weren’t interested – until competition FORCED them to improve. Thanks, David.