What are the two categories of performance indicators mentioned in the chapter, and how do they differ?

The two categories of performance indicators mentioned are lagging indicators and leading indicators. Lagging indicators reflect past performance, such as profit and market share, while leading indicators aim to predict future performance, like customer satisfaction scores.

Lagging indicators are measures that follow performance and provide insights into what has already occurred, making them useful for assessing past outcomes. In contrast, leading indicators are proactive measures that can forecast future performance and serve as early warning signs for potential issues, allowing organizations to adjust strategies accordingly.