Line of Sight

The clear connection between an individual's responsibilities and the organization's strategic objectives. Line of sight enables employees to understand how their work contributes to overall organizational success and operate within appropriate risk appetite boundaries. In RBPM, line of sight is established through the cascading of strategic objectives, risks, and controls to operational levels, supported by the RACI governance model. Technology solutions enhance line of sight by providing personalized dashboards that show individuals their specific responsibilities and performance metrics.

Lagging Indicators

Metrics that measure outcomes after they have occurred. Lagging indicators confirm whether objectives have been achieved or risks have materialized. Examples include revenue, profit, market share, customer churn rates, or accident statistics. While lagging indicators provide definitive evidence of performance or risk events, they offer limited opportunity for proactive intervention. In RBPM, lagging indicators are complemented by leading indicators to provide both outcome confirmation and early warning capabilities.

Leading Indicators

Metrics that predict future performance or risk events before they materialize. Leading indicators provide forward-looking information that enables proactive management interventions. Examples include employee satisfaction (leading indicator for retention), customer inquiries (leading indicator for sales), or near-miss incidents (leading indicator for accidents). In RBPM, effective performance and risk monitoring requires a balance of leading and lagging indicators, with leading indicators providing the early warning signals necessary for agile strategy adjustment.