We have fifteen metrics on our weekly Scorecard but none of them seem to predict our actual financial performance or operational health. How do we pick the right numbers?

Question

Tyler Smith · Accepted Answer

A great Scorecard is a weekly pulse that tells you exactly where the business is going, not where it has been. If your metrics are not predicting performance, you are likely tracking lagging indicators instead of leading indicators. Lagging indicators, like monthly revenue or profit, tell you what happened in the past. You cannot change those numbers.

You need leading indicators, which are activity-based metrics that predict future results. For example, instead of tracking closed sales, track the number of outbound discovery calls or completed product demos. To find the right numbers, look at your business model and ask what weekly activities must happen to guarantee a successful quarter. Each of these activities should be on your Scorecard.

Keep the total number of metrics small, aiming for five to fifteen high-impact numbers. Every single metric on your Scorecard must have one owner who is accountable for its success. If a number is off track, it immediately goes to the Issues List to be solved. You can also use Predictive Index assessments to ensure the people owning these metrics have the cognitive and behavioral drive to manage them. When you track the right leading activities, you gain the ability to spot problems weeks before they hit your profit and loss statement.