The Simplified Version of Lagging and Leading Indicators
DM Review, June, 2008
Lagging indicators are metrics that are normally the results of other actions and metrics. Financial metrics are the most common form of lagging indicators as they are almost always the result of some other action and resulting metric in an organization.
Leading indicators are metrics that have a downstream impact on other, more lagging indicators in an organization. Example: Sales dollar may be a lagging indicator, which may be the result of a leading indicator of change in customers.
(c) 2008 DM Review and SourceMedia, Inc. All Rights Reserved.
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