Lag indicators are an effective means of addressing below-target performance because they measure what is happening as it occurs; whereas lead indicators provide an historical performance perspective.

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Lag indicators measure performance after it has occurred, while lead indicators provide insights into potential future performance. Therefore, lead indicators are a more effective means of addressing below-target performance because they allow for proactive adjustments to be made to improve performance outcomes.

Lag Indicators Are an Effective Means of Addressing Below-Target Performance