A lagging KPI (Key Performance Indicator) is a measure of past performance and reflects the outcomes of previous actions and decisions. Lagging KPIs provide information about achieved results but do not provide insight into the causes of these results or actions that can be taken to improve performance. Lagging KPIs are frequently used to assess the overall success of a project, programme, or business.
Revenue is an example of a lagging KPI. Revenue is a key indicator of financial performance because it measures how much money a business has earned over a specific time period. While revenue is a useful measure of past performance, it does not provide insight into future performance-improving actions. Customer satisfaction scores, employee turnover rates, and sales conversion rates are other examples of lagging KPIs.
The Net Promoter Score is another example of a lagging KPI (NPS). NPS is a customer loyalty metric that asks customers how likely they are to recommend a product or service to others. NPS provides a snapshot of customer satisfaction and loyalty, but it does not provide insight into actions that can be taken in the future to improve customer experience and loyalty. NPS is a lagging KPI because it reflects the outcome of previous customer service, product quality, and marketing efforts.
The delivery performance rate is an example of a lagging KPI in manufacturing. The delivery performance rate is a measure of how frequently a manufacturer meets its product delivery dates. This KPI provides historical performance data and assists manufacturers in determining the dependability of their supply chain and manufacturing processes. However, it does not provide insight into the root causes of delivery delays or actions that can be taken in the future to improve delivery performance. The delivery performance rate is a lagging KPI because it reflects the outcome of previous supply chain management, production planning, and inventory control actions and decisions.
The average handle time is an example of a lagging KPI in a call centre (AHT). The average amount of time an agent spends on a call, including talk time, hold time, and after-call work, is referred to as AHT. AHT measures how quickly agents respond to customer inquiries and resolve problems. However, it does not provide insight into the root causes of long handle times or actions that can be taken in the future to improve call efficiency. AHT is a lagging KPI because it reflects the results of previous actions and decisions concerning call routing, agent training, and call volume.
Time to market is an example of a lagging KPI in product development (TTM). TTM is the time it takes to bring a new product or service to market from the time it is conceived. This KPI measures how quickly a company can bring new products or services to market and how well it manages the development process. It does not, however, provide insight into the root causes of long development times or actions that can be taken in the future to improve product development speed. TTM is a lagging KPI because it reflects the results of previous actions and decisions regarding product design, prototyping, testing, and production ramp-up.
Customer acquisition costs are an example of a lagging KPI in marketing (CAC). The cost of acquiring a new customer through marketing and sales efforts is referred to as CAC. This KPI provides information on the effectiveness of marketing and sales efforts and assists businesses in determining the return on investment for their marketing spend. It does not, however, provide insight into the root causes of high customer acquisition costs or future actions that can be taken to reduce CAC. CAC is a lagging KPI because it reflects the outcome of previous marketing spend, target audience selection, and channel optimization actions and decisions.
The mean time to repair is an example of a lagging KPI in operations (MTTR). The mean time to repair a broken piece of equipment or system is referred to as the MTTR. This KPI measures the efficiency and dependability of maintenance and repair processes. It does not, however, provide insight into the root causes of long repair times or actions that can be taken in the future to improve maintenance and repair processes. MTTR is a lagging KPI because it reflects the outcome of previous actions and decisions concerning preventative maintenance, spare parts management, and maintenance personnel training.
Employee turnover is an example of a lagging KPI in human resources. The percentage of employees who leave a company in a given time period is referred to as the employee turnover rate. This KPI provides information on workforce stability and retention. However, it does not provide insight into the root causes of high turnover or actions that can be taken in the future to improve employee retention. Employee turnover is a lagging KPI because it reflects the results of previous actions and decisions regarding recruitment, training, development, compensation, and workplace culture.
Customer churn is an example of a lagging KPI in sales. The customer churn rate is the percentage of customers who cancel their subscriptions or cease doing business with a company in a given time period. This KPI provides information on the customer base’s stability and retention. However, it does not provide insight into the root causes of high churn or actions that can be taken in the future to improve customer retention. Customer churn rate is a lagging KPI because it reflects the outcome of previous customer service, product development, pricing, and marketing actions and decisions.
The project completion rate is an example of a lagging KPI in project management. The percentage of projects completed within the agreed-upon timeframe and budget is known as the project completion rate. This KPI measures the efficiency and effectiveness of project management processes. It does not, however, provide insight into the root causes of project delays or actions that can be taken in the future to improve project management processes. Because it reflects the outcome of previous actions and decisions related to project planning, resource allocation, risk management, and stakeholder engagement, the project completion rate is a lagging KPI.
The actual vs. budgeted cost variance is an example of a lagging KPI in budgeting. Actual vs. budgeted cost variance is the difference between actual and budgeted costs for a given time period. This KPI measures the accuracy and effectiveness of budgeting processes. However, it does not provide insight into the root causes of budget variances or actions that can be taken in the future to improve budgeting processes. Actual vs. budgeted cost variance is a lagging KPI because it reflects the outcome of previous forecasting, cost estimation, and resource allocation actions and decisions.
The 30-day readmission rate is an example of a lagging KPI in a hospital. The 30-day readmission rate is the proportion of patients who return to the hospital within 30 days of being discharged. This KPI provides information on the hospital’s care quality and the effectiveness of discharge planning processes. However, it does not provide insight into the root causes of readmissions or actions that can be taken in the future to reduce the readmission rate. The 30-day readmission rate is a lagging KPI because it reflects the outcome of previous patient care, discharge planning, and follow-up care actions and decisions.
