Leading KPIs for Leadership

Leadership is not just about measuring results—it’s about driving the right actions to achieve them. While Lagging KPIs track past performance, Leading KPIs focus on the activities that determine future success. This blog explores how to identify and implement the right Leading KPIs for leadership, ensuring clarity, accountability, and measurable progress.

Understanding Leading and Lagging KPIs

Firstly, lets explore the difference between Leading and Lagging KPIs.

Most KPIs tend to be lagging. In my opinion, the majority of KPIs (Key Performance Indicators) should be Leading Indicators.

Lagging KPIs

Lagging KPIs tell us what we have done, they are an outcome measure. Revenue figures, the P and L, Gross profit, production output, units sold are all typical Lagging KPIs. 

Obviously there is value in tracking these numbers, but their limitation is that they tell us what has already happened. Even if they are for the previous month, they are historical.

Leading KPIs

On the other hand, Leading KPIs tell us where we are going, they are typically activity based and can be assessed on a daily or weekly basis. We choose Leading KPIs for their predictive value linking the appropriate levels of activity to ensure that we meet our targets for the end of the month.

Leadership and KPI Measurement

Leadership is an activity in business that can be measured against Lagging KPIs. Employee engagement, staff turnover, revenue targets, profit and many others. But what are the leadership activities that produce great results?

The PTA Model for Leadership Success

Leadership entails several responsibilities that I like to summarise as PTA. This stands for Plan, Targets and Accountability. Every business relies on a regular rhythm around those three factors to be successful.

Accordingly, Leaders need to:

1. Define and communicate the vision, mission, and values
2. Communicate and cascade objectives, plans and targets to create clarity around what people do and why they are doing it
3. Develop and communicate the business plan that includes a description of the current state, future state with metrics that demonstrate how the business (or business unit) is progressing
4. Be responsible for how changes are implemented within the business and hold their direct reports accountable to the outcomes established in those plans.
5. Consider strategies that encompass quality, cost, time morale and safety
6. Ensure that performance measures are aligned to the achievement of the business plan.

These steps provide the foundation for effective leadership and accountability. Each one contributes to strong leadership, and they act synergistically. Their implementation should be the initial goal of any leader or manager.

The 4 C’s of Leadership and Business Success

I talk to my clients about the 4 C’s of life and business:

• COMMUNICATION – because we don’t educate and motivate our teams enough about these objectives
• CLARITY – because most businesses assume that their teams understand the direction and priorities of the business, even though 93% of employees don’t understand what their organisation is trying to accomplish (according to a recent article in Forbes Magazine)
• CONGRUENCY – because often the metrics we use to measure performance are inconsistent with what we are trying to achieve through the business plan
• CONSISTENCY – because once we get it right, we need to keep driving through, and not easing off the pressure. I once told a mentor when things were going extremely well, that I was going to coast for a little. He told me with a smile that the only way to coast is downhill.

Accountability and KPI Measurement in Leadership

Keep in mind that the Clarity begins with you. This is part of Walking the Talk.
What are you responsible for in the business? If you are the owner, CEO or GM, you have the overall responsibility for Sales and Marketing, Operations and Customer Service, as well as Finance and Administration. Even when other people report to you for these activities, how do you measure performance in each of those areas?

What are your Leading and Lagging Indicators for these? I would suggest that you have a couple of Leading Indicators matched with 1 Lagging Indicator for each area.
Your direct reports need to be held accountable to produce these numbers and they will need their own set of leading and lagging indicators to cover their responsibilities within the business or business unit.

Key Leading KPIs for Leadership Effectiveness

Once your foundations are in place and the 4 C’s are in focus, here are my suggestions for Leading Key Performance Indicators for Leadership.

1. Check in with your direct reports daily about their WIP, any issues or challenges they may be facing, acknowledging any wins they may have had. Remember that good leaders keep their nose in, but their hands out (NIHO). You are listening much more than talking in this session.
2. Two to three times per week practice your MBWA. Not your MBA, this is Management By Walking Around. Be visible. Again, NIHO is the name of the game. Be interested, ask questions of the people that don’t report to you. This is not micro managing but showing an interest in the activities of the people that make your business successful. You are not there during an MBWA session to advise or criticise, but to understand and learn. Get to know your team.
3. Hold a weekly meeting for your direct reports where the leading performance indicators are presented and reviewed. Issues and problems, especially those relating to underperformance are discussed and actions are set to improve the performance. This must include a review of the actions decided at the previous week’s meeting to ensure they have been completed and assess the impact.
4. Reflect on the performance of yourself and your team. Devote time to work on the business, not just in the business.
5. Hold a Quarterly Management Meeting to assess the previous 90 days and set real targets for the next 90 days. Do the existing performance indicators align to the new plans and targets? If not, adjust them.
6. Post meeting, have a Quarterly State of the Nation address for the business. Report on performance for the past quarter, discuss the wins, the misses and share strategies for the misses. Explain the targets for the next quarter and how each division will contribute the successful achievement of those targets.

Summary: Key Leadership KPI Actions

• Daily: Check in with your direct reports.
• 3x per week: Conduct MBWA sessions.
• Weekly: Hold management meetings, focusing on the numbers.
• Weekly: Dedicate time to working on the business, minimum of one hour per week.
• Quarterly: Hold a management review meeting to assess performance and strategy.
• Quarterly: Deliver the State of the Nation to the business

Frequently Asked Questions

How does leadership impact business KPIs?

Leadership itself can be measured against Lagging KPIs such as employee engagement, staff turnover, revenue targets, and profit. However, strong leadership requires focusing on the activities that drive these results—these are Leading KPIs.

What are the key responsibilities of a leader in setting KPIs?

A leader’s role in KPI management follows the PTA model—Plan, Targets, and Accountability. Leaders must:

• Define and communicate the business vision, mission, and values
• Set clear objectives, plans, and targets
• Develop a structured business plan with measurable progress indicators
• Implement and oversee changes while ensuring accountability
• Consider strategies for quality, cost, time, morale, and safety
• Align performance measures with business objectives

What are some key Leading KPIs for leadership effectiveness?

1. Daily check-ins – Engage with direct reports on work progress, challenges, and successes.
2. MBWA (Management By Walking Around) – Interact with employees at all levels multiple times a week to observe and understand workflows.
3. Weekly management meetings – Review Leading KPIs, discuss challenges, and set actions to improve performance.
4. Reflection time – Dedicate time weekly to working on the business, not just in it.
5. Quarterly management meetings – Assess past performance and set real targets for the next 90 days.
6. Quarterly ‘State of the Nation’ address – Share business performance, wins, and strategies for improvement with the entire team.

What is the recommended schedule for leadership KPI activities?

• Daily: Check in with direct reports.
• 3x per week: Conduct MBWA sessions.
• Weekly: Hold management meetings and allocate time for strategic reflection.
• Quarterly: Conduct a management review meeting and deliver a company-wide update on business performance.

By consistently tracking and improving Leading KPIs, businesses can drive long-term success and ensure alignment with their strategic goals.

About the Author: Mark Pope – Business Growth & Leadership Expert

Mark Pope is an accomplished business leader with a proven track record of driving growth and transformation across industries like healthcare, consulting, and professional services. As a former CEO, he successfully expanded a small team into a national organisation, working with high-profile clients such as BlueScope, Victoria University, and Austal Ships.

Since 2020, Mark has dedicated himself to executive mentoring and leadership development, partnering with organisations like Visy, BBQs Galore, and Planet Fitness to strengthen leadership capabilities and foster high-performance cultures. His expertise lies in building trust, accountability, and effective leadership strategies that deliver real results.

Find out how Mark can support your leadership journey—click here to view his Essemy profile.

Find a Related Training Solution:

Leadership Development Workshops | Leadership Development Coach |  Leadership Development Expert