{"id":13632,"date":"2022-07-11T07:23:36","date_gmt":"2022-07-11T07:23:36","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=13632"},"modified":"2023-05-02T15:52:56","modified_gmt":"2023-05-02T15:52:56","slug":"how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/","title":{"rendered":"How to measure leading vs. lagging indicators of your digital initiatives"},"content":{"rendered":"\n<p>Whether your organization aspires to be <a href=\"https:\/\/www.walkme.com\/glossary\/data-driven\/\" target=\"_blank\" rel=\"noreferrer noopener\">data driven<\/a> (or to start, data informed) , one of the hardest aspects of developing an analytics strategy is to define <em>lagging and leading indicators. Quick definition (we\u2019ll dive deeper later):Lagging<\/em> indicators define success, while <em>leading<\/em> indicators predictably measure progress along the way.<\/p>\n\n\n\n<p>According to Harvard Business Review, <a href=\"https:\/\/hbr.org\/resources\/pdfs\/comm\/walkme\/DigitalAdoption.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">49% of executives indicated that analytics are critical to measuring the success of their digital initiative<\/a>s. But <strong>what <\/strong>exactly needs to be measured isn\u2019t always apparent.&nbsp;<\/p>\n\n\n\n<p>So how should you measure the success of your digital initiatives? Let\u2019s dive into the metrics high performing teams use to ensure they\u2019re on the path to success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Leading vs lagging indicators to measure your success<\/h2>\n\n\n\n<p>So, what are most organizations measuring to actually define and measure success? Let\u2019s take a look at some of the top metrics used by digital transformation executives.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>36% customer review and feedback&nbsp;<\/li><li>35% company revenue<\/li><li>32% speed of new technology implementation<\/li><\/ul>\n\n\n\n<p>(source:<a href=\"https:\/\/www.walkme.com\/pages\/the-cio-outlook-2021\/?t=21&amp;eco=cio-report&amp;camp=cios-pr\" target=\"_blank\" rel=\"noreferrer noopener\"> CIO Outlook 2021<\/a>)<\/p>\n\n\n\n<p>These indicators, often tied to revenue or margin, have an important role in calculating the <em>outcome<\/em> of projects in a spreadsheet, but they often miss the mark when trying to identify real impact across the organization and how it affects your employees.<\/p>\n\n\n\n<p><strong>By the time the usual lagging reporting comes into play, it\u2019s too late to have an effect on the outcome and maximize the invested time, energy and resources into a project. <\/strong>It\u2019s a real problem for transformation and technology professionals. But it\u2019s a problem we can help solve.<\/p>\n\n\n\n<p>That\u2019s why digital transformation has to start with metrics, planning, and data along the way. Let\u2019s introduce you to the yin and yang of data points, leading and lagging indicators.&nbsp;<\/p>\n\n\n\n<p>Why both? Well, let\u2019s say you and your friend Sue decided that this was the year you were going to run a marathon. No simple feat, and one which requires a tremendous amount of training. So, you and Sue both commit to training 4 times a week for the year leading to the big race.&nbsp;<\/p>\n\n\n\n<p>It\u2019s the day of the race, you\u2019ve both done it, trained 208 times, and now, it\u2019s time to run 26.2 miles like the crazy humans that you are. How are you going to do? If you feel like you need more information, you\u2019re thinking about it the right way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Measuring for outcomes with lagging indicators<\/h2>\n\n\n\n<p><strong>Lagging indicators<\/strong>, while slow to the race, are critically important. Lagging indicators provide a current view of the business by analyzing backward looking data. They also are usually tied to top-tier initiatives that connect to the expected value of your project. By defining the right lagging indicators, you\u2019ll be able to gather alignment cross-functionally to set clear and reportable goals.&nbsp; It also makes it easy to ensure you\u2019re speaking the same language with other teams.<\/p>\n\n\n\n<p>Examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Annual revenue<\/li><li>NPS<\/li><li>Customer churn rate<\/li><li>Number of trainings completed<\/li><\/ul>\n\n\n\n<p>If we think about you and Sue training for the race, it\u2019s great to see that the goals were met and completed on time. It helps track progress, and also ensures there\u2019s an alignment between multiple parties (or teams) on what needs to be done.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Measuring for progress with leading indicators<\/h2>\n\n\n\n<p><strong>Leading indicators<\/strong> should be frequently updated in order to predict a future state. By using data representative of the current timeframe, they are indicative of how outcomes may be affected in the future. <strong>By identifying the right leading indicators,&nbsp; you can measure progress towards your goals, as it\u2019s happening, allowing nimble and outcome-driven teams to predict success, identify challenges along the way, and make changes in the moment to ensure broader long-term success<\/strong>.<\/p>\n\n\n\n<p>Examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Daily active users<\/li><li>Cart abandonment rate<\/li><li>Daily support tickets&nbsp;<\/li><li>Miles per training &amp; time per miles<\/li><\/ul>\n\n\n\n<p>Here\u2019s the missing piece of the data story you need to predict outcomes. In this case, focusing on the predicted outcomes based on today\u2019s metrics helps us understand what tomorrow will look like. If you\u2019re training 208 times a year, but you aren\u2019t measuring output, change (week over week), and completion metrics, you\u2019re missing out on key data points for predictability. These are the leading indicators that allow you to ensure you\u2019ll reach your goals, or inform whether or not you\u2019re going to miss and need to make changes along the way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Predict better outcomes: Use digital adoption metrics as leading indicators<\/h2>\n\n\n\n<p>When it comes to digital analytics, tools have been developed to measure advertising yield, eCommerce progress, and product adoption. Digital adoption metrics help teams take the best of these various evolutions of metrics and find the ones that are uniquely suited to <a href=\"https:\/\/www.walkme.com\/glossary\/digital-adoption\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital adoption<\/a>.&nbsp;<\/p>\n\n\n\n<p>When it comes to being able to accurately predict outcomes, think about measuring <strong>Reach, Engagement and Activation.<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/9gQE0cEMh6eI_6jzqqjWBavReTpaLu4i1Uf97Tna_S8RTWwAjjBdzU9BWWes8DcDhh2-shRcU72HDG1GCNxr88NAcpy2WHzPfWirFLOGNyOIvRc4UdeGBzr9mNS2dLMyyCaST1gMVSdskPRlhpo\" width=\"624\" height=\"328\"><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reach: <strong>How are people interacting with your systems?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Daily active users per platform<\/li><li>Week-over-week change in users per platform<\/li><li>Monthly log-ins per team<\/li><\/ul>\n\n\n\n<p>At the most basic level, teams that are rolling out new systems need to ensure that those tools are being accessed and used in the first place. Perhaps you\u2019re relying on a communication plan to promote the new tool using email, Slack, or <a href=\"https:\/\/www.walkme.com\/walkme-workstation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Workstation<\/a>. When doing so, you can measure the effectiveness of that communication by defining your reach metric.&nbsp;<\/p>\n\n\n\n<p>Where to Start: Start by measuring daily active users (DAU) especially for a new platform roll out. Measure change over time to understand how and when platform adoption starts to succeed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Engagement: <strong>How are people interacting with critical processes?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Feature interaction rate&nbsp;<\/li><li>Week-over-week change in interaction rate<\/li><li>Single session completion rate<\/li><li>Process abandonment rate<\/li><\/ul>\n\n\n\n<p>If your system is more complex, perhaps a <a href=\"https:\/\/www.walkme.com\/platform\/crm\/\" target=\"_blank\" rel=\"noreferrer noopener\">CRM<\/a>, or an expense management system, you\u2019ll want to make sure you\u2019re measuring the actual process, and not just system access. Perhaps you\u2019ve rolled out a new expense management process that people will need to learn. By measuring process initiation, you can ensure people are able to find the initiation point, navigate to the right aspect of the system, and get to where they need to go. If you\u2019re not measuring engagement, you won\u2019t know if there\u2019s an opportunity for improvement.&nbsp;<\/p>\n\n\n\n<p>Where to Start: Start by measuring feature interaction rate to baseline how often people are finding their way to the feature. From there, you can think about % of population as you drive broader awareness.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Activation: <strong>How are people completing tasks?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Completion rate by team<\/li><li>Time to complete<\/li><li>Decrease in time to completion<\/li><\/ul>\n\n\n\n<p>At its most critical, activation is your metric to measure whether or not people have learned a new process, or completed a critical milestone. The concept of activation, borrowed here from <a href=\"https:\/\/500hats.typepad.com\/500blogs\/2007\/09\/startup-metrics.html\" target=\"_blank\" rel=\"noreferrer noopener\">Dave McClure\u2019s growth-hacker manifesto<\/a>, is the key metric that apps like AirBnB, Uber, and Facebook use to measure long-term platform adoption. Uber defined it as a user\u2019s first ride. AirBnB a first booking.&nbsp; If you\u2019re rolling out a new process, or system, take a minute to think about what \u2018success\u2019 looks like from the user\u2019s point of view.<\/p>\n\n\n\n<p>At its most basic, it\u2019s a measure of completion, establishing a metric to understand in real time, whether or not your users are able to complete a critical task. Whether it\u2019s updating a forecast, or completing open enrollment, getting the process completed, is the very nature of why your system is put there in the first place. Measure it.<\/p>\n\n\n\n<p>Where to Start: Start by measuring process completion of the most high-impact process in a system. Not sure if it\u2019s high impact? Find a process that affects a lot of people or has a high financial impact (ex: related to compliance or revenue).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Lead with purpose, lead with data<\/h2>\n\n\n\n<p>Remember &#8211; Digital adoption metrics provide a glimpse into what\u2019s happening under the hood of your platforms as they\u2019re being rolled out. Beyond the typical measures used to measure \u2018done\u2019, digital adoption metrics help you better quantify actual adoption of your systems, processes, and tools that you\u2019ve invested so heavily in already.&nbsp;<\/p>\n\n\n\n<p>Historically, this level of analytics was only available to marketers or product teams which is why technology teams were forced to rely on disconnected metrics of success. That\u2019s no longer the case with modern digital adoption tools. Now, from the moment you go live with a system, tools are available for you to answer the questions that matter most&nbsp; to your organization &#8211; <strong><em>did it work?<\/em><\/strong><\/p>\n\n\n\n<p>Measuring \u201cdid it work\u201d isn\u2019t just interesting for senior executives, but also helps connect the dots to the teams and people that are invested in delivering the successful project.&nbsp; It also helps teams identify their purpose and teams that have purpose <a href=\"https:\/\/hbr.org\/2019\/11\/why-are-we-here\" target=\"_blank\" rel=\"noreferrer noopener\">perform better<\/a>.<\/p>\n\n\n\n<p>So the next time you\u2019re rolling out a new tool or system, don\u2019t lag on defining your outcomes. Lead with purpose, lead with data, and lead with leading indicators to measure success.<\/p>\n\n\n\n<p><strong>How to get started with your next WalkMe Project<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/Data-Strategy-Practice-Data-Driven-Decision-Making-One-Pager-v1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Data-driven decision making datasheet<\/a><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Connect with other people on our LinkedIn group: <a href=\"https:\/\/www.linkedin.com\/groups\/9184099\/\" target=\"_blank\" rel=\"noreferrer noopener\">Digital <\/a><a href=\"https:\/\/www.linkedin.com\/groups\/9184099\/\">Leaders in Operational Excellence<\/a><\/li><\/ul>\n\n\n","protected":false},"excerpt":{"rendered":"Data can be helpful.  It can also be overwhelming. Learn why having too much data can be just as bad as having none at all, and how you can start using Leading Indicators to hone in on what matters most.","protected":false},"author":161,"featured_media":13633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mobile_image_id":0,"tablet_image_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7327,89],"tags":[320,285,201,210],"class_list":["post-13632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-adoption","category-digital-transformation","tag-data-analytics","tag-data-driven-leadership","tag-digital-adoption","tag-digital-strategy"],"acf":{"__coauthors":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to measure leading vs. lagging indicators of your digital initiatives - WalkMe Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to measure leading vs. lagging indicators of your digital initiatives - WalkMe Blog\" \/>\n<meta property=\"og:description\" content=\"Data can be helpful. It can also be overwhelming. Learn why having too much data can be just as bad as having none at all, and how you can start using Leading Indicators to hone in on what matters most.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/\" \/>\n<meta property=\"og:site_name\" content=\"WalkMe Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-11T07:23:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-02T15:52:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/measure-leading-vs.-lagging-indicators-1200x628-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Andrew Akman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/measure-leading-vs.-lagging-indicators-1200x628-1.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Akman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/\",\"url\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/\",\"name\":\"How to measure leading vs. lagging indicators of your digital initiatives - WalkMe Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.walkme.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/measure-leading-vs.-lagging-indicators-1200x583-1.jpg\",\"datePublished\":\"2022-07-11T07:23:36+00:00\",\"dateModified\":\"2023-05-02T15:52:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.walkme.com\/blog\/#\/schema\/person\/844ebf3005027b9c98331135899dd4a4\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/#primaryimage\",\"url\":\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/measure-leading-vs.-lagging-indicators-1200x583-1.jpg\",\"contentUrl\":\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2022\/07\/measure-leading-vs.-lagging-indicators-1200x583-1.jpg\",\"width\":1200,\"height\":583},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.walkme.com\/blog\/how-to-measure-leading-vs-lagging-indicators-of-your-digital-initiatives\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.walkme.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Digital Adoption\",\"item\":\"https:\/\/www.walkme.com\/blog\/category\/digital-adoption\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"How to measure leading vs. lagging indicators of your digital initiatives\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.walkme.com\/blog\/#website\",\"url\":\"https:\/\/www.walkme.com\/blog\/\",\"name\":\"WalkMe Blog\",\"description\":\"Digital adoption &amp; 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