Leading Indicator

A metric whose movement predicts future performance changes before those changes are...

Leading Indicator

A metric whose movement predicts future performance changes before those changes are reflected in lagging financial metrics. Leading indicators give operations leaders time to intervene before a problem becomes a financial event.

The most powerful leading indicators in mid-market operations are early warning signals that are specific to the company’s operational model. They cannot be imported from general management frameworks but must be discovered through operational observation.