Most companies measure business operations. From Marketing and Manufacturing to Sales and R&D, each has its own key indicators to report health of that part of organization. When combined, these measurements help CEO decide if company is moving in line with stated business strategy. These measurements vary depending on type of company and whether business is private or public. However, Global Marketing contends that many of these indicators are outdated and not real-time enough. Today's fiercely competitive and fast-paced market demands that CEO's and senior executive stay in front of their business. Understanding what your business is doing at any point in time is crucial to respond to opportunities as well as deal with deadly threats.

The monthly profit and loss statement is typically most anticipated and looked after report. The P&L statement is important, but recognize it is a lagging indicator. It is telling you results of decisions made long ago. As are many of other measurements senior management receives. If your firm is dealing with lagging indicators as primary tool for shaping business strategy, your customers will suffer and your competitors will love you. The 21st century business environment demands that companies forge new measurements, measurements that ‘lead' business decision making process. These leading indicators, coupled with a support system that makes them visible in a timely (real-time if firm can afford computing power) manner is essential.

Meaningful measurements allow a company to stay ahead of their competitors and better serve their customers. Global Marketing believes that "leading indicators" are most important. Depending on product and service, these leading indicators can track and trend a variety of worthwhile information. A few examples may include:

how many new customers are captured on a daily, weekly or monthly basis - is your business expanding? how much new literature is requested - gauge current level of interest in your product or service how many new leads are generated - is your marketing message effective & reaching right audience? how many ‘lost-customers' your business incurs over a given period of time - early signs of business decay how often do you lose to your competitor - tracks factual data on how your business strategy is working quoting activity - quoting volume and close rates predict future business levels time-to-market issues - timely new product introduction is a competitive advantage and re enforces brand image

Each enterprise should have its own set of measurements. Although lagging indicators verify past decisions, leading indicators allow you to stay ahead of your business, benefit your customer and beguile your competitors. Your stakeholders will be pleased too!

Frank Williams is a marketer. With many post graduate courses in management, leadership, marketing and technology to his credit, Williams is a widely respected speaker, author and technologist. He has significant knowledge in marketing strategies and is the founder and CEO of Global Marketing, Inc. - a leader in business, marketing and sales consulting

To do that, replace casual-speak and wishful promises of what you’d like to have happen or believe can happen, with commitments of what will happen. But here’s key. You can’t commit what you can’t control. If I tell a member of my staff he’ll get his review next week, but I only control when I finish writing it not when it’s approved, likelihood of me failing to meet an expectation I set with him is strong. But if review is written, signed by my boss, and in for processing at time I set expectation, I’ll meet it.

Our delinquent artisan could have called three months into project, told us he accepted an unusual opportunity to restore an historic building, was putting his other projects on hold until that was complete, and offered us choice of waiting until he resumed work or getting our deposit back. He could have preserved his credibility and relationship.

Actions may speak louder than words. But it’s our words that provide backdrop for whether our actions measure up. If I’m your customer, your boss, or your co-worker, I’m taking your words seriously. I think you should, too.

(c) 2004 Nan S. Russell. All rights reserved.

Sign up to receive Nan’s free eColumn, Winning at Working, at http://www.winningatworking.com. Nan Russell has spent over twenty years in management, most recently with QVC as a Vice President. Currently working on her first book, Nan is a writer, columnist, small business owner, and instructor.