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Lagging indicator

A lagging indicator reports an outcome after the relevant activity has occurred, such as completed sales profit, defects reported by customers or staff turnover. It can confirm whether goals were achieved and provide feedback, but may arrive too late to prevent the result. Use it with appropriate leading information and investigation rather than replacing outcomes entirely with predicted drivers. The classification depends on the decision and time relationship.

Worked example

Warranty claims paid this quarter reveal earlier product failures, while current process-quality measures may help anticipate future claims.

Common mistake

A lagging measure can still be essential. Do not assume it is useless merely because it is backward-looking.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027
ACCA PM Supporting September 2026–June 2027