What defines "lagging indicators" in TPC metrics?

Lagging indicators are defined as historical metrics that reflect performance after an event has occurred. These indicators provide insight into how well an organization has performed in the past, often utilized to assess the outcomes of decisions, actions, and changes that have already been implemented.

By focusing on what has already taken place, lagging indicators help organizations understand the results of their strategies and operational effectiveness over a specific period. This analysis is crucial for evaluating whether the goals and objectives set by the organization were met, allowing for a retrospective assessment.

For example, financial results, sales numbers, and customer satisfaction ratings are typically considered lagging indicators because they reveal how an organization has performed up until the present time. Such metrics can be valuable for learning and informing future strategies, although they do not provide direct insight into current activities or predict future performance, as leading indicators do.

Other choices offered describe aspects that do not align with the definition of lagging indicators. Metrics that predict future performance specifically describe leading indicators, while metrics assessed in real-time and comparative metrics across industry standards focus on present or relative performance rather than historical performance.