We missed our revenue target in the second quarter and our annual plan is now out of reach. Should we lower our weekly Scorecard targets to match our new forecast, or keep the original goals and let the numbers stay red?

Question

Tyler Smith · Accepted Answer

Do not adjust your weekly Scorecard targets simply to relieve psychological discomfort or make the board look green.

The Scorecard exists to tell you the objective truth about whether your weekly activity is sufficient to achieve your 1-Year Plan. When you lower weekly targets just because you had a bad quarter, you hide the shortfall and destroy the accountability that the Data Component provides.

However, you do not let numbers stay red forever without taking action. In EOS, you address macro target misalignments during your Quarterly Pulse session, not in a weekly Level 10 Meeting.

During your quarterly session, look at your V/TO. If an external market shift or permanent business pivot means your original 1-Year Plan is genuinely dead, your leadership team must formally reset the annual revenue and profit goals on the V/TO.

Once the 1-Year Plan is officially revised by team consensus, you recalculate your weekly Scorecard measurables to reflect the new trajectory.

If you do not formally revise the 1-Year Plan, you must keep the original Scorecard targets intact. Leaving them red is necessary. That red indicator is what forces your team to drop the shortfall down to the Issues List, run IDS, and establish aggressive Rocks for the next quarter to close the revenue gap.

Changing Scorecard goals mid-stride without updating the annual plan is just moving the goalposts to make yourselves feel better.