Leading indicators are "predictive" and can be influenced (e.g., number of QBRs held), while lagging indicators are "historical" and reflect the final outcome (e.g., Churn Rate).
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Why focus on leading indicators for daily operations?
By the time you see a lagging indicator (like a customer churns), it's too late to act. Leading indicators like "Product Health Score" or "Support Response Time" give you a chance to change the outcome before the lagging metric is impacted.
Knowledge Challenge
Mastered Leading vs. Lagging Indicators (Refined)? Now try to guess the related 6-letter word!
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