Lagging VS. Leading Indicators

by Pamela Jett

We have all been taught that we can’t change the past; we can only impact the future. And, most professionals understand that communication that focuses on the future as opposed to being trapped in the past (“we’ve always done it this way”); sends a powerful, positive message.

One way to up our ability to focus on the future and to present a “forward thinking mindset” is to understand and utilize the difference between lagging and leading indicators. Lagging indicators are those things which capture and summarize the past. For example, quarterly sales reports and customer satisfaction reports are lagging indicators. They summarize what has already occurred. Leading indicators are considered the “drivers” of lagging indicators. For example average customer wait time in a customer service phone queue can be a leading indicator of customer satisfaction. New products or services ready to be launched can be leading indicators of sales.

A savvy communicator will focus his or her communication on “leading indicators”. For example, if you are pitching a proposal to management, spend time talking about leading indicator data. Find out what the “drivers” are for your manager’s top lagging indicator, and focus your efforts and energies on creating ways to impact those specific leading indicators.

Having an understanding of these two terms can significantly improve our business savvy and our communication credibility. Sophisticated business people spend less time talking about what was and more time focusing on what can be. If you have any insights into how to leverage leading indicators in your communication, send an e-mail to Pamela@Jettct.com .


Pamela Jett is a communication skills expert who believes that words matter. She works with organizations, associations and individuals who want to improve their communication skills for business and personal success. She can be reached toll free at 866.726.5388, at her website http://www.jettct.com/, or by e-mail Pamela@Jettct.com .