Leading indicators have which two advantages over lagging indicators?

• A. Hard to influence
• B. Prospective
• C. Retrospective
• D. Easy to influence

Answer: (B)

Leading indicators are forward-looking signals that forecast future performance, enabling you to act in advance. This prospective nature is what makes them advantageous over lagging indicators, which reflect results after they’ve occurred. By focusing on what’s coming, you can adjust strategies or resources before outcomes materialize, improving outcomes. Retrospective (past-focused) data describes what happened, not what will happen, so it isn’t an advantage of leading indicators. While some leading indicators can be influenced by actions, that isn’t as universally reliable as their forward-looking quality, so the clearest, most consistent benefit among the options is that they are prospective.