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Presentation from the 2013 Iowa Recognition of Performance Excellence (IRPE) on creating leading indicators within your organization. Includes worksheet template to create them on your own.
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Creating Leading IndicatorsScott J Burgmeyer
Bridgestone America’s Tire OperationsDes Moines, IA
burgmeyersco@firestoneag.com
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Goals of our time together…..
Understand what leading and lagging metrics are and why they are important
Create leading indicators
Have fun…or at least pretend
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Lagging Indicators: Measures goal accomplishment, easy to measure but hard to influence.
Leading vs Lagging Indicators
Leading Indicators: Predict goal achievement, you can influence them but can be more difficult to measure.
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Example
My goal is to be 50 lbs lighter by EOY 2013.
Lagging Indicator: My weight on the scale
Leading Indicator: Calories consumed Calories burned
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Why use leading measures?
• Stop working on things you don’t need to
• Focus your actions on the right things
• Improve your outcomes
• Others??
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Why don’t more organizations measure leading measures?
• Focused on outcomes • Sometimes hard for leaders to understand
• Can be hard to measure and track
• Requires you to do something differently
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How do I create great leading measures?
1. Determine what lagging indicator(s) you want to create leading indicators on.
2. Create a list of options for lead indicators and how you will measure those ideas.
3. Verify they are really lead measures.
4. Rank them on importance.
5. Implement and take action
Adapted from The 4 Disciplines of Execution
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Creating Leading Measures
Adapted from The 4 Disciplines of Execution
Creating Lead Measures Template Lag Measure:
Idea for measure How to measure? Rank Ues It?Predictive? NInfluenceable? YOn going? YCan it be measured? YWorth Measuring? NPredictive? YInfluenceable? YOn going? YCan it be measured? YWorth Measuring? YPredictive? YInfluenceable? YOn going? YCan it be measured? YWorth Measuring? Y
Calorie IntakeRecord what I eat and the total number of
calories1 YES
Test
Days of exercise Count the number of days that I exercise 3 NO
YES
Lose 50 lbs by EOY 2013
Calories burnedRecord what I do each day and the number of
calories burned.2
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Time to work!!
Adapted from The 4 Disciplines of Execution
Creating Lead Measures Template Lag Measure:
Idea for measure How to measure? Rank Ues It?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?Predictive?Influenceable?On going?Can it be measured?Worth Measuring?
Test
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References
Using Leading Indicators to Drive Sustainability Performance. Environmental Quality Management, Summer 2009. www.interscience.wiley.com
The 4 Disciplines of Execution. Covey, M. &. (2012). New York: Free Press.
Determining Leading and Lagging Indicators. Society for Maintenance and Reliability Professionals Metric Guideline. 2009. www.srmp.org.
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