Q Leading and Lagging Indicators - Difference (practical)

[Juris]

Hello everyone,
and thanks to everyone in this forum who has helped to me before.

Our company has passed through the initial audit (ISAS BC 9001) with one major finding and four minor ones.
According findings-

the major (related with other minor finding - "quality dash board") finding is: "Yearly management review report (i.e. Public Remit Report) does not contain all the input data required by the clause 5.6.2 of the ISAS BC 9001:2003 standard"

and the minor one - "Quality dash-boards required by the clause 7.5.1 of the ISAS BC 9001:2003 standard are not established (company is still in the process of defining key performance indicators which shall be presented on dash-boards)"

In that case I need some help according key performance indicators.

An indicator is anything that can be used to predict future or economic trends.
How could I make appropriate indicators between leading and lagging?

Leading indicators signal future events.
A lagging indicator is one that follows an event. (http://www.investopedia.com/ask/answers/177.asp).

If our company use audience ratings (we are public radio broadcaster ) - in other words - market share to evaluate one of program (radio channel) - I tend to think that is lagging indicator. But what about Leading?

Thanks for every comments and ideas!

Juris

 

[Dean Frederickson]

Juris first let me say I am not involved with radio, that said, I would think a leading indicator would be the people that pay to advertise during / on your radio program.

 

[caversluis]

This is a text a found on the internet

The concept of “lead indicators” and “lag indicators” suggested by the
Balanced Scorecard method is helpful when compiling a mix of
measures for a RTO. These recognise the “cause and effect”
relationship that exists between outputs and outcomes. “Lead
indicators” are performance measures that relate to delivery of
outputs while “lag indicators” relate to outcomes. Using a mix of lead
and lag indicators can assist in identifying whether or not a strategy is
appropriate to achieve desired outcomes i.e. is there a strategic
linkage between the outputs and outcomes.

http://www.lgnz.co.nz/library/files/store_003/Performance_Measures.pdf

We intrepret it in this way:
Lag targets (KPI's) relate to the customer (customer satisfaction, warranty, call rate, line-rejects, delivery performance)
Lead targets (KPI's) relate to the process used in order to provide the product/service (scrap, internal rejects, number of exemptions, process capability, etc.)

Cornelis

 

[vanputten]

What is " ISAS BC 9001:2003 standard" and how is it realted to ISO 9001:2000?

THank you.

 

[Dean Frederickson]

RADIO ROMANIA STARTS THE IMPLEMENTATION OF ISAS BC 9001:2003 ...
Google ISAS BC 9001:2003 Standard for more info.

 

[vanputten]

Scrap and rejects are the result of the process. I guess an organization could montior scrap rates to get a sense of future returns or absence of returns. However, I would call scarp and rejects lagging indicators of the process more than leading indicators of the future.

If all of the radio programs are edited on time, the programing is more predictable and customers are generally happier. On time editing may be a leading indicator to excellent on radio programming.

I do not work in radio so I am guessing. What do you monitor that gives you a sense things will be good (or bad) in the future?

 

[Stijloor]

What is "ISAS BC 9001:2003 standard" and how is it related to ISO 9001:2000?

THank you.

This may help too.

Stijloor.

 

[Juris]

What is " ISAS BC 9001:2003 standard" and how is it realted to ISO 9001:2000?

THank you.

it is also the same as ISO 9001 plus special requirements for broadcasters.

See: www.certimedia.org

Juris

 

[Juris]

Scrap and rejects are the result of the process. I guess an organization could montior scrap rates to get a sense of future returns or absence of returns. However, I would call scarp and rejects lagging indicators of the process more than leading indicators of the future.

If all of the radio programs are edited on time, the programing is more predictable and customers are generally happier. On time editing may be a leading indicator to excellent on radio programming.

I do not work in radio so I am guessing. What do you monitor that gives you a sense things will be good (or bad) in the future?

Hello,
we monitor number of original production (% of all programs), number (%) of regional news (news which are produced in regions, the opposite is the news 'product' which comes from news agency etc.), public credibility index , and so on.
But I`m not sure what is what in terms of indicators (leading or lagging).

Thanks for any ideas and comments!
Juris