7 Truths About Your Scorecard
When something isn’t quite right in a company, it is not uncommon to see leaders and managers focus on what they think is going on. That approach leads to crafting a solution without having reliable data. Leaders and managers in this situation are attempting to solve a problem in isolation.
Enter the Scorecard—one of the foundational tools EOS Implementers™ help Leadership Teams create and use. A well-designed Scorecard gives you a weekly pulse on your business, which allows you to do two things:
- Identify and correct immediate issues
- Recognize trends so you can identify and correct long-term problems
A Leadership Team’s Scorecard is made up of five to 15 forward looking, activity based numbers, with weekly goals that lead to desired outcomes. The italicized phrase is critical to the value of your Scorecard.
In order to construct an effective Scorecard, you must believe The 7 Truths:
- What gets measured gets done
- Managing metrics saves time
- A scorecard gives you a pulse and the ability to predict
- You must inspect what you expect
- You can have accountability in a culture that is high trust and healthy
- A scorecard requires hard work, discipline, and consistency to manage, but it’s worth it
- One person must own it
Need some help getting started? Here are five generic outcomes every company wants:
- Get new customers
- Get orders from existing customers
- Make sure customers are happy
- Serve those customers profitably
- Have cash
Be patient when you design your first Scorecard. Invariably you will come up with a number that really doesn’t tell you anything meaningful. There also is the potential that a number that sounds useful takes four hours to gather each week—not a good use of anyone’s time. It usually takes a Leadership Team three to six months before they have the right set of measurables and love their Scorecard.
Remember: five to 15 forward looking, activity based numbers, with weekly goals that lead to desired outcomes. You’ll get there. And I’m here to help if you need it.
If you’d like to set up a time to discuss your company’s Scorecard or any other EOS-related topic, please fill out the form below. We’ll get a consult call on the calendar so you can start gathering data, measuring progress, and recognizing the trends and problems in your business.