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Which Indicators: Leading vs. Lagging?

Just as you can’t drive to work with your eyes only on the rearview mirror, you can’t drive your business forward by focusing on the past. Yet that’s what you’re doing if you’re relying solely on lagging indicators such as revenue, profit, or Cost of Goods Sold (CoGS) to manage your organization’s performance. These factors are important, but once they’re calculated, it’s too late to impact them. What you need are good leading indicators that allow you to spot trends and see issues before they balloon into real problems.


Leading Indicators


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