What is an example of a lag measure that reflects organizational performance?

A lag measure is an indicator that reflects past performance and is often used to assess the outcomes of previous activities or strategies. Market share is an excellent example of a lag measure because it shows how a company's performance compares to its competitors over a specific period. It provides a snapshot of the organization's success in capturing more customers and revenue relative to the market as a whole. By the time market share is calculated, it represents the results of marketing strategies, customer acquisition efforts, and overall business effectiveness that have already taken place.

Understanding market share allows organizations to evaluate the effectiveness of their business strategies and adapt as necessary, but it does not provide immediate insights into ongoing operations or predict future performance. This retrospective nature is what classifies it as a lag measure, focusing on the effects of prior decisions and actions rather than predicting future trends or performance.

In contrast, employee turnover rates, customer satisfaction, and training effectiveness are examples of metrics that can provide insight into current operations and potentially predict future performance, making them more aligned with lead measures rather than reflecting organizational performance retrospectively.