From the course: Creating a Culture of Service
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Metrics and measures
- Most organizations focus on lagging indicators and that is a big mistake. Your organization probably has some metrics that are set in stone, like profit, expenses, and customer attrition. The problem is those are backwards looking measures. So let me explain the difference between lagging and leading indicators and show you how they affect your company's culture. Lagging indicators tend to be quantitative, they're numbers, they measure what happened months or even years ago. We gravitate towards them, because they're easy to measure, it's already happened. But since they're from the past they're also impossible to change. Take revenue. Today's revenue is a reflection of previous sales activity, previous skills and focus. Customer attrition is a reflection of the reliability of your products and the quality of service in the past. In his classic 1980 book On Becoming a Leader Warren Bennis wrote, the manager has his or her eye always on the bottom line, the leader's eye is on the…
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