Goal Core · Short term goals · Module

Leading indicators

Measures that move before the outcome does, and therefore give you time. Distinguishing them from lagging measures is what makes a short review useful rather than merely early.

The idea

How it works

A lagging measure tells you what happened. A leading measure tells you what is about to, and the difference is entirely whether you can still act on it.

Every leading indicator rests on a causal assumption — that this thing moving now will cause that thing to move later. The assumption is usually unstated and sometimes wrong, which is why it is worth writing down beside the indicator.

Working with it

In practice

  1. 01

    Name the outcome first

    You cannot choose a leading indicator without knowing what it is supposed to lead to.

  2. 02

    Ask what precedes it

    What reliably happens before that outcome, early enough to be worth watching?

  3. 03

    Write the assumption down

    State the causal claim explicitly. It is now testable rather than merely believed.

  4. 04

    Check the link over time

    If the indicator moved and the outcome did not, the assumption was wrong and the indicator should go.

One level in

The components of leading indicators

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The indicator set

    The chosen leading measures, each paired with the lagging outcome it is meant to predict.

    Learn
  2. The causal assumption

    For each pairing, the stated reason for believing the one leads to the other.

    Learn
  3. The tracking cadence

    How often each is read, and by whom — frequent enough to act on, rare enough to mean something.

    Learn

An indicator that is easy to influence directly will be influenced directly, and stops predicting anything. Watch for that before trusting it.