We recently had a major shift in our market conditions, and our original Scorecard targets now feel completely unrealistic. Is it ever acceptable to change our weekly Scorecard targets in the middle of a quarter, or must we keep them red until our next Quarterly Planning session?
As a general rule, you should never change your Scorecard targets in the middle of a quarter. Keeping the targets consistent is essential for maintaining baseline accountability and measuring the true impact of external market shifts on your business operations. If you lower the bar every time external conditions get difficult, you hide the real operational challenges and teach your team that targets are soft and negotiable.
When a target becomes unrealistic, let the metric stay red. The red color is not a punishment. It is simply a signal that a critical business activity is off track and requires attention. You should drop the off-track metric to the Issues List during your weekly Level 10 Meeting and use the IDS process to discuss how the market shift is affecting your performance.
The only exception to this rule is a massive, permanent structural shift in your business model, such as divesting an entire division or acquiring a new company. In those rare scenarios, keeping the old targets would make the data completely meaningless.
For typical market fluctuations, keep the targets locked. This discipline is incredibly valuable when preparing for an exit. Savvy buyers look at how a management team handles adversity. Showing a potential buyer a history of red metrics accompanied by clear, strategic adjustments is far more impressive than showing a manipulated spreadsheet where targets were constantly lowered to keep the page looking green.
Category: Scorecards & Data