Lagging and Leading Indicators in Project Management/Project Controls
Dear BIVILLEPM Community,
Lagging Indicators:
- Definition: Measure past performance and outcomes.
- Role: Assess effectiveness of past plans and actions.
- Examples: Project completion rate, budget adherence, actual time spent, quality metrics.
Leading Indicators:
- Definition: Predict future performance.
- Role: Guide decision-making and strategic planning.
- Examples: Milestone progress, resource allocation, risk assessment, stakeholder engagement.
Plan, Actual, and Forecast:
- Plan: Sets targets using leading indicators to guide strategy.
- Actual: Measures real performance with lagging indicators to validate plans.
- Forecast: Uses leading indicators to predict and adjust future performance.
Image By #GeorgeNWOGU
Example:
1. Planning: Use leading indicators like milestone schedules and resource availability to set project timelines and budgets.
2. Execution: Track actual performance with lagging indicators such as completed tasks and budget spent.
3. Forecasting: Adjust future projections using current leading indicators like ongoing risk assessments and stakeholder feedback.
In summary, leading indicators shape future project strategies, while lagging indicators validate past performance to inform planning and forecasting.
#ProjectManagement #PerformanceMetrics #Planning #Forecasting #Indicators #COO #GeorgeNWOGU #BIZVILLEPM 🌐🚀
Warm regards,
Engr. George (Chìsom) ÑWÒGU (MBA, PMP®️)
Motto: Humanity First, then Smart and Green. 🚀
My name is George Nwogu, a Senior Project & Planning Manager, COO and Global Trainer from Nigeria. I’m the Founder of Bizville Project Management Limited
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