Our leadership team members are consistently hitting their individual departmental Scorecard metrics, but our overall company profit and exit-ready Rocks are failing. Why is there a disconnect, and how do we get the team to take ownership of the company's collective results?
This disconnect happens when your leadership team behaves as a collection of independent department heads rather than a unified team. If your sales, operations, and marketing leaders are only focused on their own siloes, they will celebrate their green metrics while the company ship is sinking. This lack of collective accountability is a major red flag for potential buyers.
You must shift the team's mindset so that their primary loyalty is to the leadership team, not to their individual departments. This is the first-team concept. The leadership team must win or lose together.
Start by reviewing your Scorecard and V/TO®. If individual metrics are green but company profit is red, your metrics are lagging, incorrect, or misaligned. You are likely measuring activities rather than outcomes. Re-evaluate your weekly metrics to ensure they directly correlate with your financial health and exit goals.
Next, tie a portion of your leadership team's compensation and quarterly bonuses to the achievement of the company's overall financial Rocks, not just their departmental targets. When their personal success is tied directly to the collective financial performance of the business, they will stop ignoring the red metrics on the Scorecard and start working across departments to solve the root causes.
Category: Leadership Team