Contractmanagement is a critical function that ensures agreements between organizationsand their partners, vendors, and customers are executed efficiently and effectively. Contract managers play a vital role in this process, and their approach to managing contracts can significantly impact the outcomes. Two common approaches in contract management are being objective-focused and KPI-driven. Understanding the differences between these approaches can help contract managers choose the best strategy for their organization.
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The Distinction Between Leading Indicators and Key Performance Indicators
Let’s shed some light on an important topic in business and data analysis: the distinction between leading indicators and key performance indicators (KPIs).
1. Leading indicators refer to specific metrics or data points that give us insights into the future performance of a business. They act as early warning signs, providing us with predictive information. These indicators help organizations anticipate future trends, make informed decisions, and take proactive actions to optimize performance. Some examples of leading indicators could be web traffic, customer satisfaction surveys, or even social media engagement.
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