Which term describes retrospective metrics that measure past performance outcomes?

• A. Lagging indicators
• B. Leading indicators
• C. Balanced scorecard
• D. Data governance

Answer: (A)

Lagging indicators are retrospective metrics that measure past performance outcomes. They reflect results after events have occurred, such as revenue earned in the last quarter, profits realized, customer satisfaction scores from completed projects, or on-time delivery rates for completed initiatives. These metrics confirm what happened and help assess how well goals were met, but they don’t predict future results.

In contrast, leading indicators anticipate future performance by tracking inputs or activities, like new opportunities in the sales pipeline, number of active customer inquiries, or production backlog — signals that suggest what might happen next. The balanced scorecard is a broader framework that uses a mix of metrics, including both leading and lagging indicators, to give a fuller view of performance. Data governance, meanwhile, concerns policies and practices for managing data assets, not measuring performance outcomes.