Most business owners and managers regularly review operational performance. Often though, the review is based on the past, relying on data from financial statements, weekly production reports, quality reports and safety incidents. This can be a bit like driving a car using the rear vision mirror.

A more effective approach would be to review the operations using multiple sources of information that predict future performance. In this way, we drive the operation by looking forward.Interestingly, forward-looking, or ‘lead’ indicators are widely used when reviewing sales performance. Sales managers closely monitor the activities leading up to a sale, not just the number of sales. The activities reviewed typically include the leads generated, customers visited and quotes sent. A similar approach can be taken when reviewing operational performance.In an operational context, lead indicators are those that reduce the likelihood of future errors, reduce inventory or reduce operating expense. These could include: percentage of staff trained, preventative maintenance tasks completed, movements in supplier lead-times, or the number of pre-start checks performed. By reviewing these activities, managers are better able to motivate their teams towards what matters most, leading to sustained, improved operational performance.