Indicator

An indicator is a metric that tracks the progress of a role or a member toward a goal the organization has set. A measurement becomes an indicator once the team compares it with a target or with its previous value to see whether the work is heading the right way. It can be quantitative, like a number of orders shipped per week, or qualitative, like customer comments sorted by theme.

An organization picks its indicators from its priorities and strategy. They cover areas such as productivity, quality, profitability, customer satisfaction, regulatory compliance or environmental impact.

A team that follows its indicators over time bases its decisions on data, sees where an adjustment is needed and spots long-term trends. Teams also use indicators for performance management, strategic planning, feedback and continuous improvement.

Teams usually read them in dashboards, charts or reports. Leaders who check them regularly know how the organization is doing and where it is heading.