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Glossary
OKRs & KPIs

What is Lagging Indicator?

A Lagging Indicator is a performance metric that documents the output of past actions and provides a historical view of success. Because these metrics are measured after the fact, they confirm whether a strategy worked but offer little insight into how to influence current performance.

When to use it

Use lagging indicators when you need to measure the ultimate success of a strategy or report on high-level business goals to stakeholders. They are the best way to validate if your roadmap initiatives actually delivered the intended business value, such as increased revenue or reduced churn.

Example

A SaaS team aiming to reduce churn sets a target of 95% Gross Revenue Retention for the year as their primary lagging indicator. Throughout Q2, they prioritize 5 high-impact performance fixes in their Kanban board to address user complaints. By the end of the year, they check the retention report to see if the fixes moved the needle on the 95% goal. While the lagging indicator confirms the project's success, the team had to wait several months to get this definitive answer.

How Planet Roadmap helps with Lagging Indicator

Planet Roadmap has an OKR tracking feature that allows you to define long-term Objectives and monitor their progress via Key Results. This allows you to link your daily tasks and roadmap initiatives directly to the lagging indicators that matter most to your business.

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FAQ

How is a lagging indicator different from a leading indicator?
A leading indicator is predictive and measures inputs or early signals (like daily active users), while a lagging indicator measures final outputs (like monthly revenue). Leading indicators help you change course mid-stream, whereas lagging indicators confirm the final result.
Why shouldn't I only track lagging indicators?
Relying solely on lagging indicators creates a feedback delay; by the time you see the numbers drop, the problems have already been occurring for weeks or months. Combining them with leading indicators allows you to see trouble coming before it hits your bottom line.

Related terms

OKRKPIObjectiveKey ResultLeading IndicatorNorth Star Metric

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