Leading Indicators
Posted by flawlessOct 19

A few years ago, I was asked to coach a leader in crisis. Her organization was struggling to survive, and she was fighting to keep her job. The board told her that unless she made drastic improvements they would fire her. Both the board and the leader were convinced that the root cause of the situation was simply the lack of execution throughout her organization. If everyone would just “run the play as it was called” and “do what they were supposed to do,” desired results would flow. These were the fundamental assumptions that the leader and the board believed. After we talked, the leader agreed to challenge these core assumptions with me. After thorough investigation, we found that “execution” was a result, not a root cause. Execution was merely a lagging indicator, a measurement of what happens at the end of a process in business. Once we switched tactics by identifying and fixing key leading indicators, the organization rapidly released trapped value and began to thrive.
Fortunately, I learned this critical lesson early in life. I had a wonderful boss once who taught me that you don’t run a business by reacting to the numbers; you run a business to produce the numbers. Loggers do not cut trees down by first removing leaves and fruit. No leader ever released trapped value within an organization by whining about execution. Unfortunately, most managers are stuck in the weakness of blame; they choose slavery to frenetic meaningless reaction, servitude to self-referential logic. These are the harmful side-effects of subjugation to lagging indicators. To break the cycle and release trapped value, leaders must lead leading indicators. Two critical leading indicators that flawless leaders manage are the hospitability of their organizations and key behaviors of their people.
Recently there has been much-ado-about-nothing regarding “execution”. It is currently the most commoditized, misused, misunderstood, and inaccurate description in business today. The core “execution” argument (that if everyone just “executes” given directions and plans, results occur) is a weak defense against leadership, a platitude of narcissistic and inactionable direction, skillful incompetence, self-referential logic, ridiculous whining, and sophisticated blame. Execution is meant to be the answer to the question “why aren’t things getting done around here?” The problem is that the answer, “because people aren’t getting things done,” sounds so much like the question. It is easily more logical to blame weak leadership. The first thing the direction of “execution” brings to an organization is more meaningless and frenetic motion, which is the last thing most organizations need. It is actually difficult to count the number of erroneous and self-justified assumptions within the “execution” argument. What complicates and confuses the matter further is that execution without organizational hospitability requires enforcement via coercion. Coercion is not leadership. Leaders who invoke coercion do so out of fear and distrust. Followers invoke their own will; they do not require coercion in order to execute.
Leading indicators are predictive and strategically pertinent. Reacting to lagging indicators is weak management at best. Leading the leading indicators is leading flawlessly. Good begets good. Hospitable organizations attract high performers. Leading indicators are grounded in individual and collective capabilities, competencies, meaningfulness, and behaviors. Flawless leaders are anticipatory and predictive due to their focus on leading indicators. Flawless leaders refuse to blame poor organizational results on followers. Flawless leaders run a business to produce the numbers. Flawless leaders are not stuck continually reacting to metrics and measurements. Flawless leaders lead leading indicators.
What measurements are most meaningful and predictive? What behaviors will you articulate and encourage to produce desired results?










