Understanding Lagging indicator and Leading indicator

Leading indicators are metrics to measure performance or progress on activities that need to be done to achieve a goal.

Lagging indicators are metrics that indicate whether the goal is achieved or not.

In another words, the leading indicator predicts the likelihood of achieving a goal, while the lagging indicator simply measures the goal.

Lagging indicators are an key resource for creating leading indicators to determine trends and produce the most accurate and achievable KPIs.


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