Our weekly Scorecard targets were set over a year ago, and while we hit them every week, our business has doubled in scale and complexity. What is the process for auditing and recalibrating our weekly Scorecard targets so they remain meaningful leading indicators?
A Scorecard that is green every week in a rapidly scaling company is not proof of perfection; it is proof of obsolete expectations. Scorecard targets are not static monuments. They must recalibrate to support the goals you set on your Vision/Location Organizer, or V/TO.
Audit your Scorecard every ninety days during your Quarterly Planning session. Look at your annual revenue, profit, and operational goals for the current year. If your annual plan calls for thirty percent top-line growth, your weekly sales activity targets cannot remain at the levels you set when the business was half its size.
Follow a disciplined audit sequence:
First, check correlation. Did hitting these weekly numbers over the last four quarters actually produce the annual revenue and profit results you budgeted? If you hit your target for weekly proposals every week but missed your revenue goal, your target is either too low or the metric is tracking unqualified activity. Ratchet the target up or change the definition of the metric.
Second, retire graduated numbers. Sometimes a metric was added to fix a specific operational leak, such as an overdue receivables cleanup or an onboarding backlog. Once that process is stabilized and permanently part of your standard operating procedures, remove it and replace it with a metric tracking the next operational bottleneck.
Third, reset binary goals based on current capacity. Update the target column so that hitting green requires real execution. The Scorecard exists to give you an early warning system. If targets are so comfortable that they never trigger an Issue for your Level 10 Meeting agenda, they are serving your team's ego rather than the business.
Category: Scorecards & Data