Visibility That Matters: The Signals Leaders Need to Steer Daily Work
- RESTRAT Labs
- 4 days ago
- 15 min read
Execution fails not because of a lack of data but because leaders can’t act on the right insights at the right time. Most organizations are overwhelmed by fragmented data across silos - sales, operations, finance - making it hard to spot problems early. This delays decisions and forces teams into reactive management, hurting performance and reliability.
The solution? Actionable visibility. This means focusing on clear, timely signals that prompt immediate action instead of drowning in excessive metrics. By adopting systems that highlight bottlenecks, risks, and flow issues in real time, leaders can reduce inefficiencies, make better decisions, and improve outcomes. Key principles include:
Leading indicators: Predict future issues before they escalate.
Flow health metrics: Track work progress and identify delays.
1-3-10 principle: Know if you’re on track in 1 second, spot issues in 3, and decide in 10.
Integrated systems: Replace siloed data with unified operational dashboards for faster insights.
Organizations using these approaches report measurable improvements: demand fulfillment increases by 4%-6%, while costs drop 7%-20%. Whether managing a large enterprise or a small business, visibility tools designed for action - not just reporting - are essential for smoother operations and growth.
From Data Overload to Clear Signals
Data Volume Versus Decision Clarity
Today’s organizations gather vast amounts of data from ERP systems, project management tools, and CRMs. Yet, despite this wealth of information, leaders often find it hard to make timely decisions. The problem isn’t the lack of data - it’s that having more data doesn’t automatically lead to better decisions.
Research from BCG highlights this challenge, noting that many companies have heavily invested in digital tools but still end up with "abundant data yet few actionable insights" [3]. The root issue? When everything is measured, nothing stands out. Leaders often waste valuable time analyzing reports, and by the time they’re ready to act, the window of opportunity has passed.
This dilemma isn’t limited to one industry. For example, a manufacturing plant might track hundreds of quality metrics, but if none clearly indicate which production line needs immediate attention, the data becomes noise. Similarly, a service business might generate weekly performance reports that arrive too late to prevent a missed client deadline.
Thomas Davenport’s work on analytics stresses the importance of decision-driven systems. Instead of asking, "What can we measure?" the focus should be, "What do we need to know to make this decision?" This mindset transforms how systems are designed, shifting from overwhelming data sets to tools that spotlight critical insights.
Information-Rich Versus Signal-Driven Systems
Organizations typically fall into two categories when it comes to visibility: information-rich environments or signal-driven systems. The difference? Information-rich setups collect massive amounts of data but struggle to turn it into action. Signal-driven systems, on the other hand, are built to highlight abnormalities and enable quick responses.
McKinsey’s 1-3-10 principle offers a clear framework for effective visibility: leaders should know if they’re winning or losing within one second, pinpoint the issue in three seconds, and decide on a course of action in ten seconds [1]. This principle underscores how signal-driven systems outpace traditional data-heavy approaches.
Feature | Information-Rich Environments | Signal-Driven Systems |
Data Focus | Large volumes of transactional data [3] | Actionable insights for decisions [3] |
Visibility Speed | Requires lengthy analysis | 1-3-10 Principle (quick action) [1] |
System State | Siloed data repositories [3] | Integrated "Control Towers" [3] |
Primary Goal | Historical tracking and reporting | Highlighting abnormalities [4] |
Decision Impact | Noise delays decisions | Clear signals for fast action [3] |
Outcome | Increased volatility and costs [3] | Reduced costs and smoother operations [3] |
In information-rich environments, data is scattered - sales forecasts in one system, inventory in another, production schedules elsewhere. This fragmentation slows decision-making and increases the risk of misalignment.
Signal-driven systems take a different approach. They consolidate data into what BCG calls a "control tower", offering a unified view that highlights deviations from expected performance [3]. Instead of drowning in reports, leaders see only what’s critical: blocked workflows, at-risk commitments, or capacity constraints. The focus is on surfacing issues that need action, not delivering exhaustive status updates.
The impact of signal-driven systems is clear. Companies that have adopted these approaches in their supply chains report measurable improvements: 4% to 6% boosts in demand fulfillment and 7% to 20% reductions in operating costs [3]. These gains come not from having more data but from receiving the right information at the right time.
How System Design Surfaces the Right Signals
W. Edwards Deming argued that management should focus on improving systems, not just hitting targets. This principle applies directly to visibility design. Systems that only show whether goals are met or missed fail to address the deeper question: Why is the system performing this way?
Effective visibility systems reveal the voice of the process - how the system is actually performing - rather than just comparing outcomes to goals [1]. This shift encourages problem-solving over finger-pointing. For example, when work slows down or stops, a well-designed system makes the issue immediately visible, turning it into an opportunity to address the root cause [5].
For smaller businesses, this could mean focusing on workflow rather than completion rates. Instead of a dashboard showing "80% of projects on track", a signal-driven design might highlight which tasks are stuck and how long they’ve been delayed. This setup allows leaders to act quickly - whether by reallocating resources, removing obstacles, or adjusting priorities - without having to dig through endless details.
The key is to design systems where problems reveal themselves automatically. If a client approval takes longer than expected, the delay should trigger an alert. If a team member becomes a bottleneck, the system should make that pattern obvious. These signals don’t require additional reporting; they naturally emerge from how work is tracked and organized.
Research from MIT Sloan supports this approach, noting that systems making workflow visible help prevent hidden problems from escalating [5]. In knowledge work, delays often go unnoticed - projects can sit idle for days without raising alarms. Visibility systems must address this by making workflow status clear and accessible.
The takeaway is simple: organizations should design visibility tools to answer the daily questions leaders face. Is work progressing? Where are the bottlenecks? What needs attention today? When these answers are available in seconds instead of hours, execution becomes smoother and less stressful for everyone involved. This kind of precise, automatic signaling forms the backbone of systems that drive effective action.
How to Design Visibility That Drives Action
Selecting the Right Signals
To make visibility actionable, start by identifying a focused set of leading indicators that highlight both flow and potential blockages. A great way to begin is with Value Stream Mapping (VSM), which breaks your operation into 5–15 process blocks. For each block, measure three key metrics:
Lead Time: The time it takes from acceptance to hand-off.
Process Time: The actual time spent working, assuming no interruptions.
Percent Complete and Accurate (%C/A): The percentage of work received without requiring rework.
These metrics help pinpoint where delays pile up and where quality issues emerge. Instead of trying to fix every step, zero in on bottlenecks. As DORA research points out:
"Improving efficiency in areas that aren't bottlenecks won't have much impact on overall lead times, and can make things worse" [2].
For day-to-day operations, prioritize flow-based indicators that flag unusual patterns - like work stuck in transition, missed deadlines, or frequent interventions by team leads. These signals help leaders answer the daily question: What needs my attention right now? For example:
In manufacturing, monitor production choke points.
Service teams can track delivery milestones for early signs of deadline issues.
SMB contractors might identify delays caused by resource shortages or permit problems.
The ultimate goal is clarity. McKinsey's 1-3-10 principle captures this perfectly: in one second, leaders should know if things are on track, in three seconds spot the problem, and in ten seconds decide how to act [1]. Achieving this level of precision means focusing only on signals that directly support decision-making.
Once you've chosen the right signals, the next step is aligning them with decision-making rhythms.
Matching Visibility to Decision Rhythms
Even the best signals won’t drive action unless they’re tied to the timing of decisions. Different decisions require different speeds, so your visibility system must adapt to those rhythms.
Daily visibility: Focus on immediate execution and deviations. What’s blocked? What missed its target? What needs urgent attention? McKinsey suggests short, daily performance meetings to address missed targets and plan recovery steps [1].
Weekly reviews: These allow teams to tackle emerging trends, address capacity constraints, and make mid-course corrections.
Monthly or quarterly reviews: These are ideal for assessing long-term trends, evaluating costs, and improving overall system health. At this level, the focus shifts from tactical fixes to strategic adjustments.
BCG’s research on supply chain control towers emphasizes the importance of timely alerts:
"Dashboards should alert managers when performance metrics hit certain thresholds or trend in an unfavorable direction" [3].
For smaller businesses, this might look like a simple routine: a quick morning check on active jobs, a weekly review of upcoming commitments, and a monthly analysis of margins and capacity trends. The system doesn’t need to be complex - it just needs to sync with how often decisions are made.
Assigning Ownership and Accountability
Once the right signals are in place and aligned with decision rhythms, the final piece is assigning clear ownership. Without accountability, visibility becomes meaningless. Someone must be responsible for interpreting each signal and acting on it.
Start by tailoring visibility to each role. Operational staff benefit from real-time views, while managers overseeing the bigger picture need trend data. Everyone should work from a shared, consistent set of information to ensure issues are addressed quickly [3].
A KPI cascade can help link metrics across organizational levels, tying actual performance (the "voice of the process") to customer expectations (the "voice of the customer") [1]. This ensures every alert is actionable. For example, if a permit delay is holding up a job, the operations manager should not only see the issue but also have the authority to resolve it or escalate as needed.
For smaller businesses, defining clear thresholds for intervention is especially important. This reduces unnecessary escalations and avoids creating bottlenecks in decision-making. As MIT Sloan research highlights:
"Engage local support" [5]
when problems go beyond an individual’s authority to resolve. A well-designed visibility system doesn’t just show problems - it connects them to the person who can fix them. Without this connection, signals become noise, and progress stalls, even if the data is perfect.
When done right, visibility becomes a true operational strength. Signals are chosen for their relevance to decisions, aligned with decision-making rhythms, and assigned to the people who can act on them without delay.
Flow Indicators and Daily Steering Across Environments
Flow Indicators That Support Execution Steering
The best flow indicators shine a light on potential problems before they spiral out of control. Metrics like work-in-progress (WIP) aging, blocker count, and percent complete and accurate (%C/A) can help you stay ahead of issues.
WIP aging tracks how long tasks remain in a specific stage. When work lingers longer than expected, it could signal bottlenecks or resource shortages.
Blocker count monitors stalled items, often caused by pending approvals, unresolved decisions, or external dependencies.
%C/A measures how often tasks arrive from upstream without needing rework. A low %C/A suggests quality issues that could lead to hidden delays down the line.
These indicators help answer the crucial question every morning: What needs attention right now? For instance, a manufacturing team might focus on production slowdowns, a service team could monitor delivery milestones to avoid missed deadlines, and a contractor might track permits or material availability to prevent project delays. As DORA research highlights:
"Visibility of work... predicts both software delivery performance and organizational performance (which is measured in terms of profitability, market share, and productivity)." – DORA [2]
Companies that use predictive alerts to address quality-related delays have reported cost savings ranging from 7% to 20% in manufacturing and distribution [3]. By spotting problems early, you can take proactive steps instead of scrambling to fix them later. This approach naturally leads to a governance system that prevents issues from escalating unnecessarily.
Reducing Chaos with Lightweight Governance
A signal-driven governance system can replace reactive escalations and endless status meetings with a more efficient, automated approach. By highlighting bottlenecks and workflow issues in real time, businesses can reduce reporting burdens and focus on solutions.
Visual tools, like Kanban boards, make it easy to spot problems - whether it’s a blockage, capacity issue, or looming deadline - without requiring constant manual updates [4]. When everyone has access to the same clear data, teams can resolve issues faster. Quick recognition of signals helps minimize delays and keeps things moving smoothly.
For smaller businesses, this might involve a straightforward daily routine: check which tasks are stuck, identify slipping commitments, and decide if intervention is needed. Simplicity is key. A consistent system with threshold-based alerts can cut down on manual reporting and allow for faster responses when critical metrics are triggered [3]. The payoff? Fewer surprises, fewer emergency meetings, and more time spent on productive work. By understanding how signals work, you can focus on immediate priorities and avoid relying solely on retrospective reports.
Lagging Reports Versus Leading Signals
To steer operations effectively, it’s important to distinguish between leading signals and lagging reports. Leading signals help you act in the moment, while lagging reports are more about understanding past performance.
Feature | Leading Signals (In-Week Flow) | Lagging Reports (Monthly Summaries) |
Purpose | Drive timely intervention and daily adjustments | Assess performance and long-term trends |
Examples | WIP aging, blocker count, %C/A | Monthly lead time summaries, total throughput |
Decision Rhythm | Daily stand-ups or real-time alerts | Monthly business reviews |
Impact | Prevents escalation by catching issues early | Highlights systemic problems, often too late for immediate action |
Data Source | Real-time system telemetry | Aggregated ERP or financial data |
Leading signals allow for quick action. For example, if WIP aging shows tasks stuck in a stage too long, you can address the bottleneck immediately. A spike in blockers calls for clearing dependencies quickly, and a drop in %C/A points to quality issues that need fixing before they disrupt customers. On the other hand, lagging reports confirm what’s already happened - often too late to prevent the fallout.
Research from MIT Sloan underscores the value of visibility in workflow. Allowing everyone to see how work progresses helps uncover hidden problems early, reducing the need for frequent check-ins or status updates [5]. When flow indicators align with decision-making rhythms and are supported by lightweight governance, daily steering becomes a seamless and efficient process rather than a reactive scramble.
Applying Enterprise Visibility to Small Business Operations
Translating Visibility Into SMB Workflows
The same strategies that large enterprises use to keep their projects on track can be just as effective for small businesses - whether it's a contractor managing six job sites or a service business juggling twenty client commitments. The difference lies in the scale and stakes. Without clear signals, the owner becomes the bottleneck, slowing everything down and stalling growth.
One way to address this is through value stream mapping, which helps pinpoint where work gets stuck. Break the process into 5–15 steps (like moving from lead generation to final invoice) and compare lead time to process time. A big gap often signals waste, delays, or rework. For example, a general contractor might notice that projects consistently stall between framing inspection and drywall delivery - not because the crew is slow, but because material orders aren’t placed until the inspection is complete. Similarly, tracking Percent Complete and Accurate (%C/A) reveals how often work flows without needing rework. A low %C/A might indicate, for instance, that an electrician has to revisit a job site multiple times due to an imperfect rough-in, eating into profits and delaying schedules. This kind of mapping not only highlights delays but also sets the stage for a tailored visual management system.
Visual management brings these insights to life without creating extra reporting headaches. A Kanban board or card wall can show the status of every active job - whether it’s on track, at risk, or blocked. By applying the 1-3-10 principle, an owner can quickly assess the overall picture, spot problems, and decide what action to take [1]. This kind of system makes it easy to see stuck jobs, overloaded teams, or risky deadlines, enabling faster and more effective interventions.
Simplifying Daily Operations With Clear Signals
Once you’ve established clear workflow metrics, a visual management system can help simplify day-to-day operations. With work status displayed on a shared board or digital screen, the constant need for check-in texts and lengthy status meetings fades. Everyone - whether in the field, the office, or the owner themselves - works from the same source of truth. This reduces time wasted on misunderstandings and allows the team to focus on solving actual problems.
Daily meetings become shorter and more action-oriented. Instead of lengthy updates, these stand-ups focus on missed targets and immediate next steps. For instance, a builder managing four custom homes might spend just five minutes each morning reviewing which jobs are delayed, identifying blockers, and confirming whether any commitments are slipping. This isn’t about micromanaging - it’s about steering operations effectively. The system highlights the right issues at the right time, allowing the owner to step in when necessary and trust the team to handle the rest.
Enforcing Work-In-Progress (WIP) limits is another way to keep things running smoothly. By capping the number of active projects, you prevent delays, rushed work, and rework. This forces a critical decision: hold off on starting new projects until current ones are on track. The result? A more stable workflow and fewer bottlenecks for the owner.
Preparing SMBs for Growth With Visibility
Clear signals don’t just reduce today’s chaos - they also set the stage for sustainable growth. By designing systems for actionable visibility, small businesses can achieve more predictable operations and lay a foundation for scaling up. Just like enterprise systems reduce costs, small businesses that adopt visibility techniques can cut operational waste by 7%–20% and reduce working capital needs by 15%–30% by better understanding demand and supply fluctuations [3].
Research from MIT Sloan highlights how visibility prevents hidden problems from spiraling out of control and reduces the need for workarounds [5]. For a service business growing from five to fifteen employees, informal systems that worked when everyone was in the same room start to fall apart. Without designed visibility, growth often leads to chaos. But with a solid system in place, the owner can confidently add capacity, delegate decisions, and trust that issues will surface before they become crises. The result? Smoother operations, stronger margins, and the ability to scale without constant firefighting.
Conclusion: Visibility as a Leadership Tool
Visibility isn’t just about collecting data - it’s about creating systems that provide timely signals, enabling leaders to guide execution without unnecessary meetings or escalations. When implemented effectively, visibility becomes a powerful leadership tool, cutting through chaos, boosting reliability, and opening the door for growth.
The best systems make work status, risks, and trade-offs clear, empowering teams to act immediately. This principle applies whether you’re overseeing a portfolio of enterprise projects or managing a small contracting business with multiple job sites. The goal remains the same: visibility exists to drive action. Research from DORA underscores this, showing that visibility into the value stream strongly predicts organizational success, including profitability, market share, and productivity [2].
The benefits of visibility-driven approaches are tangible. For instance, manufacturing operations can see cost savings of 7% to 20%, while better working capital management can yield savings of 15% to 30% [3]. Perhaps the most transformative impact is the shift from debating data accuracy to solving problems proactively [3].
As work becomes faster and more interconnected, the need for sharp, timely signals grows. Organizations that prioritize visibility are better positioned to scale efficiently while avoiding the pitfalls of complexity. By providing daily guidance, visibility reduces the need for last-minute interventions, safeguards profit margins, and allows leaders to focus on building systems that operate reliably without constant crises. This discipline, exemplified by the 1-3-10 principle, cements visibility as a cornerstone of effective leadership.
"A system that allows everyone to see when and how the work is flowing - especially complex knowledge work - prevents hidden problems from festering and limits the proliferation of work-arounds that can cause organizational rigidity."Nelson P. Repenning and Donald C. Kieffer, MIT Sloan Management Review [5]
FAQs
How can leaders distinguish between systems that overwhelm with information and those that provide actionable signals?
Leaders can pinpoint the difference by examining how a system delivers data and aids decision-making. An information-rich system tends to bombard users with an overload of metrics, dashboards, and raw data. While it effectively shows what’s happening, it often fails to clarify what should happen next. This lack of direction can make it challenging to identify urgent issues and forces users to spend extra time deciphering the data.
On the other hand, a signal-driven system focuses on a select few leading indicators that are directly tied to flow and commitments. It simplifies the process by using clear status markers like “on track,” “at risk,” or “blocked.” These signals are delivered at the right moment, aligning with regular decision-making cycles (like daily or weekly reviews). This approach ensures that the right person can act promptly, cutting down on unnecessary meetings and avoiding confusion.
To assess your system, consider this: Does it provide concise, actionable signals that pinpoint when and where action is required? If it doesn’t, your system might be more information-heavy than signal-focused.
What is the 1-3-10 principle, and how does it help leaders make better decisions?
It seems there isn’t any widely recognized information on a 1-3-10 principle or how it might relate to decision-making. Without a clear definition or reliable source explaining the concept and its applications, it’s difficult to provide a precise explanation. If you have additional context or a specific source that outlines this principle, feel free to share, and I’ll do my best to help break it down for you.
Why is having actionable visibility more valuable than just collecting more data?
Actionable visibility is all about delivering the right signals at the right time. Instead of drowning leaders in a sea of irrelevant or excessive data, it provides the clarity needed to make timely decisions. After all, more data doesn’t always mean better decisions - it often leads to confusion and delays.
By focusing on clear, decision-ready signals rather than sheer data volume, organizations can cut through the noise. This not only reduces unnecessary reporting but also allows teams to act swiftly on potential risks or opportunities. The result? Leaders can spend less time wading through data and more time driving impactful results.
