Requirement $1.$ Explain the difference between lag and lead indicators.

Lag indicators are performance measures that tend to reveal the results of past actions. They

come after decisions and actions taken in the past. Lead indicators are performance measures that tend to indicate future performance

They come before, or drive, future performance

Financial measures tend to be neither lag nor lead indicators. The financial results of a period are based on real time data at the present time. Operational measures tend to be neither lag nor lead indicators. Current customer satisfaction ratings, defect rates, and on$-$time delivery rates are based on real time data at the present time $.$ Management needs to know the results of nast decisions. but it also needs to know how current decisions may affect the future. To adequately assess the company, managers nees