What Happens in Practice?

One common input indicator that organizations used are “dollars invested in the community”. It is a leading (input) indicator and is used because it is very difficult to control what the community does with the dollars after the donation. Some organizations attempt to control, and thus measure, the output/outcome by targeting their dollars to a specific area, such as scholarships for education. Then, it is possible to measure the output such as “number of students receiving scholarships” or the outcome of “number of students graduating because of the scholarship program”.
Click here to see how BHP Billiton, a global resources company, uses both leading and lagging indicators to control and measure its safety program.
Compliance with PPE requirements is a leading indicator because it is designed to prevent harmful injury to employees. This graph shows the results of BHP’s audit
of compliance to the PPE requirements. Click here to view.