We have several metrics on our Scorecard, like gross margin percentage and customer retention, that require both our sales and operations departments to work together. How do we assign a single owner to a weekly metric when multiple seats on our Accountability Chart impact the outcome?

Question

Tyler Smith · Accepted Answer

In the EOS world, there is a strict rule that every single metric on your Scorecard must have one, and only one, owner. Having multiple owners means nobody is truly accountable. When a number goes red and two people own it, they will inevitably point fingers at each other.

To solve this, look at your Accountability Chart and determine who has the ultimate responsibility for the outcome. Gross margin is a classic example. Sales controls the pricing, while operations controls the cost of delivery.

You have two ways to handle this. The first option is to assign the high level metric to the seat that has the most significant impact on it. If your biggest margin leaks are operational inefficiencies, then your Integrator or Operations Director must own gross margin.

The second, and better, option is to break the metric down into its component leading indicators. Give the Sales seat a metric for average contract price or pricing variance to ensure they are not discounting to win deals. Give the Operations seat a metric for labor efficiency or material waste.

By tracking these separate leading indicators, you get a clear picture of where the margin is being lost. Each leader owns their specific driver of profitability, and the overall gross margin metric is owned by the Integrator, who oversees the entire system. This keeps ownership crystal clear and prevents finger pointing in your Level 10 Meeting.