Measurements that indicate the results of actions pursued are considered lagging indicators; that is, the measurement lags behind the activity. Measurements that are predictive of what will happen in the future are termed leading indicators. For instance, the CDIS measures are all lagging indicators for they measure what has been produced, but the staff turnover ratio is a leading indicator (based upon the premise that generally staff who stay in their jobs become more valuable in accomplishing the organization’s mission).
See related topics in this section:
Purpose of Measurements and Ratios
Performance Measurements Tracked: