Worksheet · Strategy Health Check
Put three leading indicators beside the P&L
The P&L tells you how last month went. It cannot tell you whether the strategy is taking hold. This sheet picks three measures that move first and puts them in the monthly pack. It builds the Competent step of the check:
A handful of strategic measures (e.g. share, mix shift, capability milestones etc.) are reported alongside financials, each with an accountable owner.
Step 1. Find a measure for each theme
Look beyond finance: customers, the way work gets done, and the skills being built. A leading measure moves months before revenue or profit does.
| Theme | Measure | Why it moves before the financials | Baseline | Target and date | Data source | Owner | Who produces it | Who receives it |
|---|---|---|---|---|---|---|---|---|
| e.g. Shift the mix to services | Services share of new contracts signed | Contracts signed now become revenue next year | 15% | 30% by FY28 | CRM | GM services | Sales operations | Leadership team |
Step 2. Check each measure
- One owner, by name.
- The data comes from a system and is produced the same way each month.
- The measure would move if the strategy stalled.
- It can be reported for the whole year, including the months when it turns bad.
Step 3. Lay out the monthly page
| Left half | Right half |
|---|---|
| P&L summary: revenue, margin, EBIT, cash | The three measures: this month, trend, target, owner's comment |
Done when: the measures appear in the monthly pack beside the financials, each with a named owner, for three months running.
Adapted from our own strategy templates (PSP, 2011).
From the Strategy Health Check. Your report links the sheet for each of its moves.