Which KPI type indicates future performance?

Leading indicators are metrics used to predict future performance and trends. By analyzing these indicators, organizations can make proactive adjustments to their strategies and operations before outcomes are finalized. For example, a leading KPI might include metrics such as the number of new leads generated or customer inquiries, which can signal future sales and revenue growth.

This type of indicator serves as a guiding light, helping decision-makers anticipate changes and adapt their actions accordingly. In contrast, lagging indicators reflect past performance, current indicators provide a snapshot of the present situation, and relative indicators measure performance against other entities or benchmarks without necessarily predicting future outcomes.