Leading Metrics: Why They Are Important for Measuring Performance and Success

Leading Metrics: Why They Are Important for Measuring Performance and Success
  • By Sakshi Arora,
    Published on: May 01, 2023
  • Updated on: May 02, 2023
  • Analytics

"Measure what is measurable, and make measurable what is not so."
Galileo Galilei

This quote, made almost five centuries back, applies to every organization. While some aspects of the business process are measurable such as sales, revenue, growth, etc., what about leadership or cybersecurity? Shouldn't an organization measure these? To do so, we need to quantify them or, as Galileo said, make them measurable. 

Organizations must measure their performance and success accurately to succeed in this competitive world. Measuring performance and success is all about numbers and key performance indicators. Aren't we always measuring our success based on historical data? While this strategy helps take corrective actions, analyzing metrics leading indicators offers insights into current performance and prepares us for future opportunities and challenges. 

When we talk of performance metrics as leading indicators, one can't restrict them to measuring the success of marketing campaigns. They apply to every sphere of the business, starting from the HR team up to the leadership. Here we will discuss the importance of leading metrics and their role in measuring performance and success for organizations across different spheres. 

What Are Leading Metrics?

Before we go deep into metrics for measuring leadership or leading metrics analysis, let us start with the leading metrics definition. Leading metrics are performance indicators that provide us with insights into future performance and outcomes. When we analyze leading indicator metrics, we can anticipate future trends and behaviors by looking at the current trends and data. 

They are proactive measures since they can help your team take corrective actions before it's too late. For example, if a change in leadership in the marketing team has brought down engagement rates, a change in leadership may be imminent. Leading metrics also help predict future business success and make informed decisions. Since they are forward-looking measures compared to lagging metrics, organizations benefit from measuring and analyzing them. 

Leading metrics vs. Lagging Metrics
We have already defined leading metrics, and you know that they are a forward-looking measure that helps predict the future, cash in on opportunities, and mitigate risks. In contrast, lagging metrics are backward-looking indicators. These analyze past performances and look at the impact of past decisions and actions. Leading metrics are dynamic, and it is not easy to quantify them. When it comes to lagging metrics, you can always access historical data and analyze them. While leading and lagging metrics are important for every organization, most organizations tend to focus on the latter thanks to the easy availability of data. 

Leading Metrics vs. Lagging Metrics Examples
To understand the difference between the two, let us look at a few examples of leading metrics vs. lagging metrics – 

Examples of Leading Metrics 

  • Sales pipeline – It offers you insights into the potential sales opportunities 
  • Qualified leads – The number of leads who are interested in your product 
  • Employee satisfaction – The level of employee satisfaction you wish to achieve 

Examples of Lagging Metrics 

  • Revenue – The revenue your organization earned over a given period.
  • Employee turnover - The percentage of employees who have left your organization
  • Product defect rate – The percentage of defective products sold

Leading Metrics You Should Measure

Your organization must take full advantage of leading metrics in the competitive business landscape. They will prepare you for the future and offer you an edge over the competition. Here are some of the leading metrics that your business should measure.

Team Leader Metrics
A team leader is the fulcrum of the team. Either they can inspire their team members to succeed, or maybe the reason behind exists from your organization! While measuring team leader metrics, you must focus on the team's performance, engagement, employee turnover rate, etc. These metrics can help the team leaders identify their flaws and take corrective steps to inspire team members. 

HR Metrics Leading Indicators
We don't need to reiterate the role of an HR team in the organization. HR metrics leading indicators are thus extremely important. They gauge the performance of your HR team and their impact on the organization. The HR metrics leading indicators you should focus on include employee retention rates, training, recruiting process effectiveness, and organization diversity. 

Performance Metrics Leading Indicators
These indicators measure the performance of teams and individual employees in your organization. Measuring these indicators is important as it offers insights into your organization's growth or regression. You should focus on productivity, quality, customer satisfaction, growth rate, and sales effectiveness metrics. By tracking them, you can identify areas where employees and teams can improve their performance and contribute to the organization's success.

Metrics for Measuring Leadership
Metrics for marketing leaders is one of the most important leading metrics and perhaps the least measured! Leaders can impact the entire organization with their vision and qualities. Examples of leadership metrics include employee engagement, team performance, leadership effectiveness, employee retention rates, etc. For any organization to grow, inspirational leadership is non-negotiable, and hence it is important to put top leaders under the scanner. 

Cybersecurity Leaders Metrics
The importance of cybersecurity is well-known as digital presence has become as important as the physical presence for every organization. Cybersecurity leaders' metrics measure the performance of the cybersecurity teams and how they safeguard your organization's digital assets. You can focus on metrics such as vulnerability management, incident response time, and detection and response rates. It will give you a clearer picture of the measures you should take to improve cybersecurity. 

Final Thoughts

To sum up, leading metrics are vital for any growth-oriented organization for measuring performance and success. They let you take proactive corrective actions based on upcoming trends instead of reacting to bad data, as in the case of lagging metrics. Having insights into future performance and outcomes will help you make the right decisions to put your business on the growth curve. 

If you wish to put your business on a growth trajectory and want to track the right metrics, Growth Natives can help. We are a Marketing & Customer Engagement Agency that uses data and creativity to take businesses forward. We can help you identify and track the metrics that matter to your business. Call our toll-free number, +1 855-693-4769, or email us at info@growthnatives.com for more. 

Author Box

Sakshi Arora

Sakshi Arora is a seasoned content writer and editor with extensive experience across various industries including B2C, B2B, travel, e-commerce, and IT. In her free time, she enjoys expressing her creative side through painting and writing poetry. She also finds solace in nature and has a deep spiritual connection. Music brings her immense joy.


Leading metrics are forward-looking metrics that help predict the future while lagging metrics look at historical data.  

Most organizations track lagging metrics frequently as they are easy to access, measure and quantify. However, leading metrics are important as they help in future growth 

To measure leadership development, you should focus on metrics such as employee retention rate, succession planning, performance improvement, etc. 

Unlock Data-Driven Insights and Drive Growth with our Leading Metrics Expertise

Get in Touch

Join Our Newsletter

Stay up to date with our latest blogs and news.

Let's Scale Your Brand Together !