Leading indicators and lagging indicators are performance measurement tools used to assess organizational progress and outcomes.
* Leading Indicators:
* Provide information about future events or conditions.
* Help predict trends and allow proactive adjustments.
* Example: Employee training completion rates predicting future performance improvements.
* Lagging Indicators:
* Reflect past events or conditions.
* Measure results and outcomes after processes are completed.
* Example: Customer satisfaction scores based on previous interactions.
* Why Other Options Are Incorrect:
* A: Not related to leadership input or exit interviews.
* B: Leading and lagging indicators can encompass both financial and non-financial metrics.
* C: Both types of indicators may include quantitative and qualitative measures.
References:
* Balanced Scorecard Framework: Highlights the use of leading and lagging indicators in performance measurement.
* OCEG GRC Capability Model: Discusses indicators for tracking progress.