Our leadership team argues that weekly revenue belongs on our 5 to 15 Scorecard, but it rarely changes our behavior during the week. How should we balance top-line revenue against leading activity metrics when every slot is precious?
Top-line revenue on a weekly Scorecard is almost entirely backward-looking. By the time booked revenue hits your accounting ledger, the work was sold weeks ago and delivered days ago. If that number misses target on Tuesday, there is nothing your leadership team can do about it during your Level 10 Meeting except worry.
To build a Scorecard of 5 to 15 numbers that actually drives your business forward, you must bias heavily toward leading activity metrics. Revenue can occupy a single line as a trailing reference point, but the surrounding numbers must reflect the upstream behaviors that generate that revenue.
Look at the operational chain that produces sales. If you need 100,000 dollars in new revenue every week, ask what physical activities guarantee that outcome:
- Outbound discovery calls booked by sales reps
- Proposals submitted to qualified decision-makers
- Project milestones signed off by clients
- Billable hours logged against active contracts
When these leading activities hit their targets, revenue takes care of itself. If you only track the final dollar amount, you are managing by looking in the rearview mirror. Dedicate no more than two or three slots on your leadership Scorecard to lagging financial results like cash and revenue. Dedicate the remaining ten to twelve slots to the non-negotiable weekly activities owned by seats on your Accountability Chart. That gives you early warnings, not post-mortems.
Category: Scorecards & Data