Indicators that drive decisions
A good indicator is not just measurable. It is owned, traceable to a source, and answers a question someone will act on.
Herbert LyimoFounder and Chief Executive Officer
1 min read
Indicator lists grow easily and shrink with difficulty. Before adding one more, it helps to ask what decision the indicator will inform — and who will make it.
Types of indicators
Frameworks usually combine input and process indicators (are resources and activities on track?), output indicators (what was delivered?), and outcome and impact indicators (what changed, and for whom?). Leading indicators give early warning; lagging indicators confirm results.
Characteristics of a useful indicator
- Specific and measurable — a clear definition, unit and calculation method.
- Traceable — a named data source and a person responsible for it.
- Baselined and targeted — a starting value and a realistic target with a date.
- Timely — reported often enough to change what happens next.
- Owned — someone is accountable for the result, not just the reporting.
From indicators to action
Indicators earn their keep in management review meetings: where performance is off-track, the meeting agrees corrective actions, owners and deadlines — and the next report shows whether they worked.