The purpose of creating a strategic plan is to achieve results benefiting stakeholders. While it might be possible for a brand-new organization to build a rocket and put a person on the moon in their first year of existence, it is very unlikely. Leaders need to select the results they want to achieve in the next 3–10 years based on what they find reasonable from their assessments of the Strengths, Weaknesses, Opportunities, Threats, and Aspirations. While this post presents measures in the reverse order, discussing lag measures first, they represent the indications of final results. Leading measures are the most important These are the actions required to perform regularly, are hardest to identify, and are often counterintuitive.

Lag Measures = Measures of Effectiveness

Lag measures are the results you expect to see if your selected change actions are effective. In some circles, lag measures are called measures of effectiveness because changes made in process should result in the effective results envisioned by leaders. For example, a nonprofit sets a goal to increase its unrestricted reserve. A lag measure would show an increase on the balance sheet and in the check book of unrestricted funds raised. This measure means the processes to change your fundraising efforts are being effective, so it is a measure of effectiveness.

Lag measures indicate that the organization is making progress on its strategic goal. Progress is not the same as achievement. Lag measures typically show successful results weeks, months, or years after a change occurred. Some time ago, I was chatting with the owner of a car dealership. He shared that every year they support the local agricultural fair. They offer large discounts on cars during the fair and for four weeks after the fair closes. This is fourth generation family dealership providing the owner the wisdom of his ancestors. The family found they sell very few cars at the fair. Interest in car buying picks up the week following the fair. Many fair goers stop by the dealership to have a second look at cars they saw at the fair. In the next few weeks, they sell 45% of the cars they sell all year. Attended the fair is a leading performance measure. Selling cars is a lagging effectiveness measure.

Leaders need to understand the delay between process changes, and effective results. Understanding the delay creates the discipline to continue processes, identified by lead measures, for an appropriate period of time after the change or event.

Lead Measures = Measures of Performance

Lead measures, also called measures of performance, determine how well chosen activities are being completed. In our nonprofit example above, the Executive Director determines raising awareness of the organization and the issue it champions will help raise unrestricted fundraising. She decided one way to do this is post to social media platforms every day alternating between the organization and the cause. The performance measures are pretty simple. The ED can go to the selected social media sites to see the daily postings. In this example, if staff are failing to post daily, they are failing to meet performance objectives that in theory undermine the strategic goal of raising more unrestricted revenue, the measure of effectiveness.

Identifying lead measures is not easy. As a leader works through the process, they may find activities they thought should produce effective end results are different from their expectation. That means they need not only to regularly measure performance of lead measure activities, but monitor the measures of effectiveness as well. You may learn what you thought were important activities are less important to the results desired. Reevaluate your leading activities and performance measures.

Keeping Score

Identifying what leading activities influence effectiveness measuring performance. Report measures to the doers. There are a variety of ways to track progress. Engage the doers when developing methods of reporting.

When I served as a Command Sergeant Major, there was a section that wanted to have the highest physical fitness test results in the command. The hard part was the section was divided into two shifts to cover time in the operations center. When I stopped in to visit during the night shift, I saw a new ‘scoreboard’ on the wall showing the number of push ups, sit ups, miles run by the night shift. One of the Specialist told me it was their challenge to the day shift to match their activity so their section could achieve their goal. The next day, I noticed the day shift added their own score board, and they were slightly higher in ‘points’ than the night shift. I pulled the section sergeant aside and asked how he thought of the scoreboard and how he motivated his section to attempt to achieve this goal. He laughed and said, “Sargent Major, we were just talking smack about having the best PT score one day. Next thing I knew, it was a thing. The night shift came up with the score board. I’m just trying to keep up!”

While the sergeant’s reply was a little modest, I knew he had a desire to achieve the highest section PT score. His section picked up the idea and made it better. They created the standard. They identified the leading actives required to achieve it. They developed the methods of measuring. That section did achieve the best PT score in headquarters battery.

Score boards are important. They must show the progress of the leading measures. They should be developed by those doing the work and displayed so everyone knows where they stand.

As you identify results desired for your strategic plan, also identify the performance processes required to achieve those results. Select lead (performance) and lag (effectiveness) measures. Create scoreboards sot those completing the work know where they stand. Make the process fun so people want to participate. Evaluate if the lead activities are moving you in the right direction. If not, find out if that is because performance is not what is expected, or because you picked the wrong actions. Make changes and continue to measure. Selecting the right leading activities will ensure you achieve the results you desire by the end of the strategic plan.

References

Bossidy, L, & Charan, R. (2002) Execution: the discipline of getting things done. Crown Business. New York, NY.

George, M, Rowlands, D, Price, M, & Maxey J. (2005). The lean six sigma pocket toolbook. McGraw Hill. New York, NY

Lab, S (2007) Crime prevention: approaches, practices and evaluations. Mathew Bender and Company.

McChesney, C, Covey, S, & Huling, J. (2012) The 4 disciplines of executions: achieving your wildly important goals. Free Press. New York, NY