Glossary Leading Indicator

What is a Leading Indicator?

A leading indicator is a metric that shows performance at an early stage. You stay on track to meet your strategic objectives. A lead indicator “leads” to results by indicating your progress towards accomplishing your goal. Unlike lagging indicators, a lead indicator measures input into a system over which you can exercise direct control. This is the indicator on which you can act and change, like action or task. The best part about leading indicators is that they show the organization into the future, allowing statements about the upcoming time. Due to your capability to anticipate future business behavior, your business becomes more proactive. These indicators are a means to get the boost your business needs in the future. For instance, qualified leads are a leading indicator of sales in the future.

Business Benefits of a Leading Indicator

  1. Gives faster feedback to your team on their efforts to accomplish the over-arching objectives.
  2. Involves all teams and departments in the organization to meet the high-end goals.
  3. Helps you stay focused on the future.
  4. Brings about proactivity in the organization.
  5. Prepares you for future changes in advance.

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