Episode 7
Guest: Richard Eckles

Episode 7: Leading and Lagging Indicators w/Richard Eckles

May 5 / Magnus Billgren
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Leading and Lagging Indicators
As an entrepreneur and product manager, I have been in many discussions with the board, accountants, and management. I have left the room several times, filled with frustration. I have been raging mad in some of these discussions. I called it stupidity, but it was logical thinking based on the wrong starting point. Decisions were far to often made on false principles and data. We need decisions to grow the business and increase profitability. But decisions are sometimes made on the wrong data.

Using the wrong data will lead to the wrong decisions! The popular Shark mobile phone from Ericsson was killed because they used LAGGING indicators for decision making.

Product People focus on the future and how to develop our offer to the market. We need data to indicate the future, and that guides our behavior. The North Star methodology is not only a powerpoint term. It is a concept to guide decisions and to generate the right insights.

The North Star methodology is based on a few concrete steps:

  1. Define the game your playing

  2. Establish the Success Formula

  3. identify the key parameters you can affect in the Success Formula

  4. Find indicators for these parameters

  5. Measure and follow up

The North Star methodology is a concept for creating leading indicators for your business. It will support decision-making to reach success.

Richard Eckles shared examples of how companies have applied the methodology and the impact it has on the organization and the outcome. It works!

I wish I had understood the concept of leading and lagging indicators, before going raging mad in my earlier management meetings.