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Leading indicator

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In Scrum with Kanban, it is common to measure things that improve the team’s insight and make it more efficient. Something you measure is also called an indicator. Here you distinguish between two types: a leading indicator and a lagging indicator.

Leading indicators as future predictors

Leading indicators tell you something about what might happen in the future. They do this by indicating a deviation from the norm. Thereby they quickly show if something is going wrong and/or deviating.

Examples

Examples of leading indicators are Work in Progress (WIP) and Work Item Age. Characteristically these indicators have a desired ‘norm’ or standard. You use a leading indicator as an early warning signal, allowing you to then steer accordingly.

Also relevant: lagging indicators

The opposite of a leading indicator is a lagging indicator. These tell you something about what has already happened in a system. Lagging indicators help you understand and learn from past activities.

Related terms

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