Laws of Software Engineering · Principle

Principle

Leading and Lagging Indicators

Leading indicators predict future outcomes. Lagging indicators measure past outcomes. Use both, for different purposes.

How to use it. Lagging indicators, such as revenue, incidents, and satisfaction, tell you what happened. Leading indicators, such as pipeline, error rates, and engagement, tell you what is about to happen. You steer with leading indicators. You judge with lagging ones.

How it gets misused. Measuring only lagging indicators because they are easier. By the time the lagging indicator moves, the decision window is closed. The whole point of a leading indicator is that it gives you time to act.

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