What are "leading indicators" in the context of TPC performance measurement?

Leading indicators are metrics that help predict future performance by providing insights into activities and conditions that may influence outcomes. In the context of TPC performance measurement, these indicators are essential because they offer a proactive approach to management, enabling organizations to identify trends and implement strategies that can enhance performance before results are fully realized.

For instance, if an organization tracks customer inquiries or feedback as leading indicators, these metrics can suggest potential market shifts or customer satisfaction levels that may impact future sales and overall performance. Thus, accurately monitoring these indicators allows for timely adjustments that can avert negative outcomes and capitalize on positive trends.

Leading indicators serve as a guiding tool for planning and forecasting, choosing proactive measures to ensure success and enhance overall organizational effectiveness. This forward-looking nature contrasts significantly with those metrics that evaluate past performance or focus on employee satisfaction and training effectiveness, which are more retrospective or specific in nature.