Lagging indicators show you the outcomes of a product performance. It's a post-event type of indicator. Lagging indicators show you how a product is doing when it's too late to change anything. Examples of lagging indicators:
Lagging indicators give you a bigger picture. It allows you to compare your performance between the time periods. While showing good overview lagging indicators are usually reactive. When you see lagging indicators it's too late. The train is gone. Leading indicators allow you to influence your situation. You see the situation as it develops and can take decisions to improve it. However, leading indicators are short sighted. You can draw some trends from leading indicators, get some predictions. Yet this information does not guarantee the outcomes.
- customer satisfaction score
- revenue per employee...etc.
Leading indicatorsLeading indicators show you a progress of your product performance. It shows you a change as it happens. It's a predictive type of indicator. Leading indicators show you how a product is doing right now, in this very minute. Based on that information you still have time to do something, influence those indicators.
Examples of leading indicators:
- number of sales calls per salesperson
- the budget spending rate
- product adoption rate
- customer satisfaction measurement...etc.