Why both
Lagging indicators are the truth — they tell you what actually happened. But they're too late to change. By the time revenue drops, the trend started months ago. Leading indicators give you a chance to intervene while there's still room.
Examples
| Domain | Lagging | Leading |
|---|---|---|
| SaaS | Revenue, retention, NPS | Activation rate, weekly active, NPS-driver questions |
| Construction | Project finished on date/budget | Weekly schedule variance, supplier delivery rate |
| Healthcare PM | Patient outcomes | Adherence, readmission rate, ED throughput |
↳ the most common metrics failure
Reporting only lagging indicators to leadership and acting on them. By the time the lagging signal moves, the team is already 90 days behind. Healthy teams report both — and use the leading indicators to predict and intervene.