Lag and Lead
Jacob Lützhøft Christensen s184113
Lag and lead indicators, are what is known as Key Perfomance Indicators (KPI). According to the british standard "Program Management: "Managing Successful Programmes“", a Key Performance Indicator (KPI), is a metric (either financial or non-financial) that is used to set and measure progress towards an organisational objective. [1]. These indicators are widely used in organisational contexts, to measure, record, predict and improve perfomance. Future and past perfomances are time-based indicators which are distinguished by the terms: lag and lead indicators.
A lead indicator, is an indicator which is forward looking. Meaning it attempts to show a future perfomance. These indicators can be difficult to determine, as they are prone to subjectivity and error, and can cause debate as to the validity of the lead indicators measured. [2]. Lagging indicators measure historical perfomance, and tends to focus on outcomes. This makes them easy to record, and they are essential for charting progress, however they do not influence the future as lead indicators do.
In project, program and portfolio management, realising the potential of lag and lead indicators, can be a vital part of being a succesful PM. This article examines the possibilities and limitations of utilising lead and lagging indicators in a project, program and portfolio management context as well as explains the general idea behind the concept of these two Key Perfomance Indicators.
Reference link: team, human behaviour, Stephen Covey
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