What’s the Difference, Anyway?
Let’s break it down.
Lagging indicators are all about results. They tell you what’s already happened. If you’re stepping on a scale and it tells you your weight, that’s a lagging indicator. You can’t change it now—it’s a snapshot of past behaviors. In sales, that might be your monthly revenue, total closed deals, or your conversion rate. These are the numbers people usually want to hear about, but they don’t tell the whole story. It’s like focusing on the score of a game without looking at how the players trained or the strategies they used. On the flip side, leading indicators are the actions that lead to those results. They’re what you can actually control day-to-day. If we stick with the weight loss analogy, leading indicators are like counting calories or tracking your exercise. You can actively work on them to influence the outcome. In sales, leading indicators might be the number of calls made, emails sent, or follow-up meetings booked. These are the behaviors that ultimately affect the lagging indicators.
Why Should You Care?
Most of us naturally focus on lagging indicators because they’re easy to see and measure. But the truth is, they don’t help much in improving performance. It’s like looking in the rearview mirror—sure, it tells you where you’ve been, but it won’t help you get where you need to go. For instance, using leading indicators in sales onboarding can be a game-changer. Tracking behaviors like the number of discovery calls a new hire makes or how many follow-up emails they send can directly impact their success rate down the road. These behaviors give you a much clearer idea of how to improve performance before it’s too late. Leading indicators are the real MVPs when it comes to tweaking performance and improving outcomes. They give you the chance to make adjustments before the damage is done.
A Simple Rule: Focus on What You Can Control
Here’s where it gets practical: you can’t force someone to buy your product (if only it were that easy). But you can control how many people you talk to, how you engage them, and how well you understand their needs. Those are your leading indicators. Sometimes we obsess over lagging indicators because they’re comforting. They’re clear, final, and easy to measure. But you can’t influence a deal that’s already closed (or lost). Instead, zero in on the controllable actions that feed into those big, shiny results.
Where’s the Balance?
Obviously, you can’t ignore lagging indicators—they’re what keep the lights on. But if you don’t keep a close eye on the leading indicators, you’re flying blind. It’s like playing a video game without paying attention to your health bar. Sure, you might win a few rounds, but eventually, ignoring those small warning signs will catch up with you. The sweet spot is understanding that both have a place in your strategy. Track your results, but spend most of your time on the behaviors that create those results.
Leading Indicators Are the Actions That Count
If you’ve ever watched a cooking show like Chopped, you know the results aren’t always what the judges care about. Sure, they taste the food at the end (lagging indicator), but they’re more impressed by how well the chefs handle the pressure, how they use their ingredients, and whether they follow the techniques (leading indicators). The outcome matters, but it’s the process that really earns the win. Sales is no different. Focus on how well your team is working the process, and you’ll see the outcomes start to improve. Pay attention to your leading indicators—those are the real moments that matter.
Leading and Lagging Indicators in Action
So how do you use all this in the real world? Here are a few practical steps you can take:
Identify your leading indicators. Figure out what actions will drive your desired outcomes. This could be the number of client meetings, demo calls, or proposals sent.
Track them religiously. Keep a close eye on these numbers. If they’re slipping, you know something needs adjusting before the results tank.
Measure your lagging indicators. While they shouldn’t be your only focus, it’s important to keep tabs on the big-picture numbers, like sales revenue and conversion rates. Use these to gauge your overall progress.
Adjust as you go. The beauty of leading indicators is that they give you time to course-correct. If you’re falling behind on outreach or follow-ups, you can ramp up those efforts before it shows up in your lagging indicators.
The Future Is in Your Hands
Leading indicators are your sales team’s steering wheel, while lagging indicators are your speedometer. Both are important, but one gives you control, and the other just tells you how fast you’ve been going. If you focus on what you can control—those leading indicators—you’ll find that the lagging ones start to take care of themselves.
So, next time someone asks about your results, think about the journey, not just the destination. Because in sales, as in life, it’s not just about hitting the scoreboard—it’s about playing the game right.
Sales is a tricky business, and knowing what to measure is just the start. Want to dive into the biggest challenges shaking up sales right now? Grab our deep dive ebook here.
