Reliable Leading Indicators

​If we want to reach our targeted, or Key Performance Indicators (KPIs), we would be best able to intervene early, because once you have a result it is a metric from the past. Thus the relentless search for some kind of magical "leading indicator." What can we look at to reliably predict the results we are going to get? 

Much time, effort, and money has been put toward developing fancy algorithms and predictive models. I can't help but imagine lots of folks hunched over their computer worksheets figuring this out. If only they would look up from their work station and OBSERVE what people are actually doing throughout the process that leads to results. (known as the Gemba in Lean / Operational Excellence circles). 

The most reliable leading indicator of results are the behaviors of people who are doing the customer facing work, as well as the people doing the work all along the process (value stream) of the product and/or service being provided.

Here is a very simple but real example: When you enter a retail store, you may be welcomed with a cheery "Hello!" A warm welcome (the behavior) has a direct impact on results: lower rate of shoplifting, and a higher rate of sales. When stores don't have a practice of greeting customers, they experience the opposite results.
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How do we know what the ideal behaviors are for people doing the work all along the value stream? We can ground the behaviors in our understanding of the Guiding Lean Principles.

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Each of the principles is associated with a suite of behaviors, in this document you can consider the behaviors for the first two sets of "Engage" and "Align" principles.

​A deep understanding of the principles and their associated behaviors is the first step in a wholistic development of Operational Excellence that sustains over time. These also set up the systems and tools that are developed, topics I will cover in future blog posts.

Wishing you Joy at Work,
Jim Barker