Asked by ALDONA KEKELIA on May 22, 2024
Verified
Cody is a manager at Valvco and is creating a measure map. Cody is correct in assessing that if median training hours per employee predict the improvement of delivery times to the customer, then delivery times is the lagging indicator and median training hours per employee is the leading indicator.
Median Training Hours
The midpoint number of hours spent on training wherein half of the cases are above and half are below this value.
Lagging Indicator
A measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend.
Leading Indicator
Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future economic activity.
- Identify the use of leading and lagging indicators in assessing performance and executing strategies.
Verified Answer
AS
Aysha ShakilMay 22, 2024
Final Answer :
True
Explanation :
In this context, the median training hours per employee is a leading indicator because it predicts future changes and can influence the outcome, which is the improvement of delivery times. Delivery times, being the outcome that is measured after the fact, serve as the lagging indicator, reflecting the results of prior actions such as training.
Learning Objectives
- Identify the use of leading and lagging indicators in assessing performance and executing strategies.