Data in Business: Measuring What Matters
In business, as in sport, performance is judged by results. Athletes are measured by their times, distances, or scores. Businesses are judged by their revenues, profits, or market share. These are the lag measures—the outcomes that tell us where we’ve been.
But if we only look at results once the race is over, we miss the chance to influence performance while it still matters. The key is to balance lag measures with lead measures—the inputs and activities that shape future outcomes. In sport, that might be hours of training, nutrition quality, or rest. In business, it might be customer calls, product tests, or training hours.
The art of managing with data is knowing not just what to measure, but why—and for whom.
Lead and Lag Measures: The Two Sides of Data
Lag Measures show what has already happened.
Business examples: revenue, market share, profit margin, customer satisfaction.
Sport examples: race completion times, finishing positions, average speeds.
They are important, but retrospective—too late to change.
Lead Measures predict and influence future results.
Business examples: number of client meetings, product prototypes tested, hours of staff training.
Sport examples: weekly training hours, healthy meals, sleep quality.
They are controllable in the present and point toward better outcomes.
Focusing on both allows leaders to act proactively while still learning from outcomes.
The Right Data vs. Convenient Data
A common trap is measuring what is easy rather than what is meaningful. For example, counting the number of meetings held or emails sent may be convenient but says little about impact. The right data aligns with strategy, speaks to outcomes, and provides actionable insight.
The test is simple: If you couldn’t measure this tomorrow, would decision-making suffer? If the answer is no, it may not be a critical measure.
Different Stakeholders, Different Measures of “Good”
Not all data is valued equally by all audiences.
Executives / Board want data that links to strategy, growth, and risk.
Finance cares about cost control, compliance, and budget accuracy.
Operations value timeliness, clarity, and efficiency of data.
Customers look for reliability and trust.
Regulators focus on accuracy, transparency, and compliance.
Analysts prize completeness, consistency, and usability.
Measures of “good” can therefore vary:
Time – is data available when needed?
Quality – is it relevant and fit for purpose?
Cost – is it efficient and worth the investment?
Accuracy – is it correct, consistent, and reliable?
Great organisations recognise these competing priorities and design their metrics accordingly.
Data as a Decision Tool
The true value of data is not in collection, but in application. Data should enable:
1. Clarity – giving a shared view of the current state.
2. Management – supporting control, coordination, and accountability.
3. Decision-Making – providing confidence to act, adjust, or invest.
This means creating systems that link measurement with action. Lead measures inform where to focus effort; lag measures validate whether effort produced the right results.
From Sport to Business: A Practical Analogy
Think of business as preparing for a race.
Lag measures are the finish time: what the market, customers, or regulators will ultimately see.
Lead measures are the training regime: the controllable choices that prepare you to succeed.
An athlete who only looks at the scoreboard will always be reactive. An athlete who tracks and manages their training inputs has the power to influence outcomes before race day.
The same is true for organisations.
Measuring What Matters
To make data meaningful, businesses should:
Balance lead and lag: measure both actions and outcomes.
Align to strategy: ensure metrics support the bigger picture.
Engage stakeholders: understand what “good” means for different groups.
Focus on impact: distinguish activity from value.
Keep it actionable: collect data that drives decisions, not just reports.
Conclusion
Data is not just numbers—it is the narrative of performance. The right data, chosen thoughtfully, empowers organisations to measure what matters, manage with foresight, and make confident decisions. Like sport, business success depends not just on crossing the finish line but on preparing in ways that make that success possible.
The question every leader should ask is not just “What happened?” but “What can we influence today that will shape tomorrow?”