[Personal Sharing] Customer Focus OKR - Lead & Lag Measure

This week reflection is more about my learning that I wanna share with everyone from the sharing of anh @Steve about How to create a Customer Focus OKR

Disclaimer: It’s only from my observation as a 1- month newbie in Magestore, I’m more than welcome to all the perspective, it will help me to learn tremendously I believe.

I still remember how much I feel connected with and @Steve’s sharing about 2 points above. It reminded me about a concept that I’ve known before (I think it’s kinda famous) - Lad measures & Lead measures from The 4 Disciplines of Execution.

  • Lag measures track the success of your wildly important goal. Lags are measures you spend time losing sleepover. They are things like revenue, profit, quality, and customer satisfaction. They are called lags because, by the time you see them, the performance that drove them is already passed. You can’t do anything to fix them, they are history.

  • Lead measures track the critical activities that drive, or lead to the lag measure. They predict the success of the lag measure and are influenced directly by the team.


Normally people will clearly know their Lag measures but don’t really know how to define their Lead measures ( and how to really achieve it - their strategy, approach). I feel a bit opposite in Magestore somehow when everyone is so passionate about our innovation, initiative but not yet really consider how far we wanna go as a Business/Organization in Mid - Long terms.

Why do I think so? It’s when we can’t answer the questions from anh @Steve and align with the company picture:

  • Are we doing things that create value improvement for our customer.
  • Are we setting OKR based on that?
  • Does our Initiative/Approach born to achieve that?

Question: Have we ever think about our lag measure in a year/6 months/ 3 months and what is that?

I’m not talking about how to set lag measure ( past data/context analysis, draw down the pattern & what is our ambition, etc). I think this part anh @Steve did communicate really clear in Magefest 2021 about the direction of Magestore.

Have you and your team ever look at this and break it down to the measurement that your team needs to take ownership to make it happen?

Then from there, we can figure out how to reach their (our strategy/approach), clear milestone (Quarterly/monthly) with clear Lag Measures and Lead Measures.

I take the example of MageX:

2021 Direction:

  • Customer Centric
  • Distributed Work
  • Magestore Member as Partner
  • Revenue/member/year 36K
  • Headless POS & Raise Series A
  • Stick income with result for every team.
  • All magestorers are the expert in Retail operations.

We have a lag measure of 36K ~ 150% current productivity.

  • What can MageX do in order to ensure 50% increment in productivity for all Magestorers in 2021? - Strategy, Initiative of the year.

  • How should it move throughout the year? (Quarter by Quarter, the productivity improvement might not reach until 50% in the first quarter, it need to have a roadmap)- Quarter Lag measure.

  • How do we achieve it? - Quarterly OKR.

It might be abit hard for us to think in the big picture like this but remember we have BoM and we have each other. I do believe that everyone can take ownership of the whole company movement, not just from and @Steve and BoM.

I hope to hear the perspective from everyone, sharing is caring <3

Reference: Leading vs Lagging Indicators Examples In Business


Thank em for your reflection on a quite vague topic :wink:
One thing I still don’t understand from the 4DX picture above, why “lag” is “easy to get” and why “lead” is hard to get? I think it should be vice versa? @terry

Thank you chị for your response <3. Lag measures are front line measurements such as Revenue, Customer Satisfaction, etc. (you can read more here: Leading vs Lagging Indicators Examples In Business - They clearly know where are they heading for in a period of time but they don’t really know how to ensure we can get there, because at the time we know about the lag measure - it has passed by already. But it’s hard to know which indicators should we track in order to head to our lag measure. (Because it requires them to clearly understand how the businesss/deparment run and it’s also sticking with the initiative/approach we wanna implement to push the result as well).

For example: In sale department:

Lag measure: revenue

Lead measure: No.Lead, Conversion rate (to all the stage - MQL, SQL, Explore meeting, etc)