Description: The lagging indicator is a performance metric used to assess the success or failure of a process after it has occurred. Unlike leading indicators, which predict future outcomes, lagging indicators focus on historical data and past results. These indicators are crucial for process management as they allow organizations to analyze the performance of their activities and make informed decisions based on concrete results. Lagging indicators can include metrics such as return on investment (ROI), customer satisfaction, delivery time, and product quality. Their main characteristic is that they provide a clear view of how processes have performed in the past, helping to identify areas for improvement and establish benchmarks for the future. While they are essential for performance evaluation, their retrospective nature means they cannot be used to anticipate problems or opportunities, highlighting the importance of complementing them with leading indicators for comprehensive and effective management.
