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  • Writer's pictureDan Beck

Driving Behaviours with KPIs: An Insight into the Power of Leading Indicators

Here at PT 2.0 Pty Ltd, we're firm believers in the power of data. We're committed to helping businesses, from professional services firms to the retail, hospitality, manufacturing, and engineering sectors, leverage data to their advantage. Today, we're turning our focus to the magic of Key Performance Indicators (KPIs), particularly the lead KPIs, and their potency in influencing and reinforcing behaviours. Let's dive right in!

What are you measuring and why?

Understanding what you're measuring and why is the cornerstone of any successful business strategy. KPIs provide an objective assessment of your business's progress towards its goals. However, not all KPIs wield the same power. While lag KPIs offer a look back at past performance, lead KPIs provide a glimpse into the future, presenting an opportunity to affect outcomes proactively. These indicators, when chosen wisely, can guide behaviours, creating a pathway to success.

The Power of Lead KPIs

Lead KPIs are particularly potent as they emphasise the inputs or actions that can influence the desired outcomes. Unlike lag KPIs, which measure results after the fact, lead KPIs are all about what we can do now to affect future results. These proactive measures focus on areas within our control and can, therefore, guide and reinforce behaviours towards achieving strategic goals.

Consider an engineering firm aiming to improve project efficiency. A lead KPI like 'percentage of projects using our efficiency checklist' can drive the team to incorporate these efficiency practices into their routines. Or, in project management, a lead KPI such as 'percentage of projects with clearly defined scope at initiation' emphasises the importance of thorough planning, thus reinforcing this behaviour, rather than the outcome, which is hard to change once the project has already been completed.

Reinforcing Behaviours through Lead KPIs

Lead KPIs, when thoughtfully chosen and effectively communicated, can shape the culture and behaviour within an organisation. By prioritising actions that drive towards the strategic objectives, these KPIs reinforce positive behaviours that align with those objectives.

They empower teams to influence outcomes, instilling a sense of ownership and responsibility. What's more, as team members witness the tangible impact of their actions on these lead KPIs, it further motivates them to sustain these behaviours.

Accessing the Data You Need for KPIs

More often than not, the data required to inform your KPIs is right there within your organisation already. The challenge often lies in accessing and interpreting this data effectively. That's where we, at PT 2.0, can help. With our team of advisors, we can unlock this potential, not just by developing connectors and reports that allow your business to readily access and interpret the data, but also by guiding and facilitating setting these KPI’s within your business. This data-rich foundation enables you to devise meaningful and actionable lead KPIs that align with your business objectives.

It's never too late to start thinking about the future, but a great lead KPI will help you set the future.


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