This is an idea I first heard about from [[Shawn Blanc]] when discussing the [[4 Disciplines of Execution]]. A lagging indicator is something that shows past performance. Focusing on this indicator is very difficult to affect the outcome. I.e. number of sales in a month. All you can do is shorten the measurement distance (x a day) but that doesn't guarantee you will sell more. A leading indicator is something that can influence the desired outcome. This is something you have direct influence over and can affect. An example is the number of sales calls you make. This is something that you can increase or try to increase. Lagging indicators are usually our desired outcome, while leading indicators are usually the process we must follow. There is a danger in focusing too much on the leading indicators using Sales calls as an example, we could over-optimize for our leading indicator and make thousands of 1 second calls. We'd never make any sales through that tactic. So it's important to monitor both and how they affect each other. I believe this danger is an idea within the book [[measure what matters]]? or you are what you measure?