Leading indicators are predictive signals that provide insights into future outcomes.Think of them as early signals. These are the metrics you can influence now to shape future outcomes. For instance, the number of new loan applications processed today may predict future revenue for a bank.
Lagging indicators, on the other hand, show you what has already happened. They are the results. These metrics confirm whether or not you’ve reached your goal. Revenue, customer satisfaction scores, or project completion rates are typical examples of lagging indicators.
In short, leading indicators help you steer the ship, while lagging indicators tell you if you’ve reached the destination.