What are leading indicators and lagging indicators?

Leading indicators and lagging indicators are performance measurement tools used to assess organizational progress and outcomes.

Leading Indicators:

Provide information about future events or conditions.

Help predict trends and allow proactive adjustments.

Example: Employee training completion rates predicting future performance improvements.

Lagging Indicators:

Reflect past events or conditions.

Measure results and outcomes after processes are completed.

Example: Customer satisfaction scores based on previous interactions.

Why Other Options Are Incorrect:

A: Not related to leadership input or exit interviews.

B: Leading and lagging indicators can encompass both financial and non-financial metrics.

C: Both types of indicators may include quantitative and qualitative measures.