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Metric (Leading vs. Lagging)

Definition

A leading metric predicts future outcomes (e.g., activation rate predicts retention), while a lagging metric reflects past results (e.g., revenue, churn). Both are essential: leading metrics allow PMs to intervene early, and lagging metrics confirm whether interventions worked. PMs should build dashboards that pair leading indicators with lagging outcomes to create a complete picture of product health.

Why It Matters for Product Managers

Understanding metric is critical for product managers because it directly influences how teams prioritize work, measure progress, and deliver value to users. PMs should build dashboards that pair leading indicators with lagging outcomes to create a complete picture of product health. Without a clear grasp of this concept, PMs risk making decisions based on assumptions rather than evidence, which can lead to wasted engineering effort and missed market opportunities.

How It Works in Practice

Product teams put this concept into action by integrating it into their regular workflow:

  • Adopt — Agree as a team on how and when to apply this practice, making it an explicit part of the team's working agreement.
  • Execute — Follow through consistently, treating the practice as a non-negotiable part of how the team operates.
  • Inspect — Regularly evaluate whether the practice is delivering the expected benefits and surface any friction.
  • Adapt — Adjust the approach based on what the team learns, keeping what works and discarding what does not.

    • The value of metric compounds over time. Teams that commit to it consistently see improvements in velocity, quality, and cross-functional alignment.

    Common Pitfalls

  • Treating this as a checkbox activity rather than embedding it into daily team habits.
  • Applying the concept rigidly without adapting it to the team's context and maturity level.
  • Failing to communicate the purpose behind the practice, which leads to team resistance.

    • Related Concepts

    To deepen your understanding, explore the related concept: North Star Framework.

    Related Terms

    North Star FrameworkAARRR (Pirate Metrics)OKR (Objectives and Key Results)

    Frequently Asked Questions

    What is metric in product management?+
    A leading metric predicts future outcomes (e. Product managers use this concept to make more informed decisions and deliver better outcomes for users and the business.
    Why is metric important for product teams?+
    Metric is important because it provides structure and alignment that enable teams to ship faster, reduce waste, and maintain quality. Teams that adopt this practice consistently see improvements in collaboration, predictability, and user satisfaction.
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