Lagging indicators

Obviously, leading indicators are great for knowing if you're on the right track to reach your goals.

So why would you ever want to pay attention to lagging indicators?

By definition, lagging indicators are a sign that you've been doing something right. Because somehow you've achieved a good result.

This means lagging indicators are great for assessing processes that you might repeat later — because if something has worked in the past, you might be able to look back and figure out why it worked.

To build on yesterday's examples:

If you've had success losing pounds before, that successful lagging indicator can point you to steps that could bring similar results in your next effort.

If you've seen success building up a store of cash in the bank before, that successful lagging indicator can point you to some smart behavior that might be worth repeating.

If you've seen a spike in your revenue at any previous annual gala, that successful lagging indicator can point you to something that may be worth repeating at your next gala.

As any financial advisor will tell you, past performance does not guarantee future results.

But patterns can provide clues.

And if you're gathering data as you go, and assessing it rationally, a successful lagging indicator can be like a beacon pointing you in the right direction for your future efforts.

But of course, you have to gather the data, and you have to analyze it rationally.

If you’re doing that, there’s a lot to be gained by paying attention to lagging indicators.

All the best,
A.