Description: A leading indicator is a performance metric used to predict the future performance of a process or activity based on current data and observed trends. These indicators are fundamental in process management as they allow organizations to anticipate outcomes and make informed decisions before events materialize. Unlike lagging indicators, which reflect past performance, leading indicators provide a proactive view, enabling companies to adjust their strategies and operations in real-time. Key characteristics of leading indicators include their ability to identify patterns and trends, their relevance in strategic planning, and their utility in risk assessment. In an increasingly dynamic business environment, these indicators have become essential for efficient process management, as they facilitate adaptation to market changes and improve decision-making. In summary, leading indicators are key tools that help organizations remain competitive and optimize their operations through forecasting and analysis of current data.
