Predictions, about the future, are famously difficult. But Warren Tapp says understanding what lies ahead is crucial for strategic oversight and direction.
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How can Board members get better insights into what the road ahead holds for your organisation?
Often board reports help directors see past results, but that is history, although part of your monitoring role. Understanding what is coming next is crucial for strategic oversight and setting the strategic direction for the company.
It is useful to have ‘lag’ indicators as they reflect and measure and what has already happened.
Having ‘lead’ indicators offers a forward-looking customer satisfaction, new product development or market share and growth. For not-for-profit entities it might be member satisfaction, donor engagement or membership growth.
Lag indicators are beyond the control of the board, they have happened, while lead indicators are still in your control to do something about.
Any Board should have a combination of both lead and lag indicators in all Board reports, and all such indicators should be regularly reviewed to ensure they are still appropriate, and you are monitoring the past and future.
Make sure you have indicators for all aspects of organisational performance, past and future.
Warren Tapp
Tapp Advisory
