Should goals be set for lagging indicators?

Setting goals for lagging indicators is important because they provide a historical perspective on performance and outcomes. Lagging indicators reflect what has already happened within an organization, such as customer satisfaction scores, sales figures, and service resolution times. By setting goals around these metrics, teams can establish benchmarks of success based on previous performance, identifying areas for improvement and tracking progress over time.

This focus on past performance is critical as it allows organizations to assess how effective their processes and initiatives have been in meeting customer needs and business objectives. While it is also valuable to consider leading indicators—metrics that can predict future performance—lagging indicators serve as key metrics for understanding the outcomes of past actions. Overall, establishing goals for lagging indicators can drive accountability and continuous improvement within an organization.