Our managers are starting to build out their own departmental scorecards, but we are worried these local metrics will disconnect from our main leadership Scorecard. How do we cleanly cascade our weekly data from the leadership team down to the front lines without creating data overload?
As your company grows, your leadership Scorecard must remain focused on the high-level, vital few metrics of the business. You cannot manage every operational detail at the leadership level without creating massive data fatigue. Instead, you must cascade your metrics by establishing departmental scorecards. Every seat on your Accountability Chart that reports to the leadership team should have its own departmental scorecard to manage its daily operations. The metrics on these departmental scorecards must act as the supporting framework for your leadership Scorecard. For example, if your leadership Scorecard tracks total weekly gross margin, your operations departmental scorecard might track machine uptime, material waste, and direct labor hours. If your leadership Scorecard tracks net new revenue, your sales department scorecard should track outbound calls, proposal close rates, and demo meetings completed. During your weekly Level 10 Meeting™, you only look at the high-level leadership numbers. If a leadership number goes red, the department head must look at their departmental scorecard to identify the exact sub-metric that caused the failure. This structure keeps your leadership team focused on the big picture while giving middle managers the specific data they need to run their departments.
Category: Scorecards & Data