We have several weekly metrics on our leadership scorecard that have been red for over six months, yet our business remains profitable and our clients seem happy. How do we diagnose whether these targets are set too high, if we are tracking the wrong activities, or if these metrics are simply dead weight we need to eliminate?
When a weekly metric on your scorecard is consistently red for months while your business continues to thrive, you are dealing with a dead metric. This occurs when a number is no longer correlated with your actual strategic objectives, or when the target was set based on guesswork rather than operational reality.
To diagnose and fix this, start by testing the metric against your V/TO and current Rocks.
First, check the correlation. Look at your historical data. If this specific metric is red, but your client satisfaction, team capacity, and net profit are all healthy, the metric is likely a vanity number that does not affect your bottom line. It should be removed from the scorecard.
Second, review the target. The target may have been set during a different operational phase and is no longer realistic or necessary. Adjust the target to reflect your actual capacity and current market conditions.
Third, verify ownership on the Accountability Chart. Ensure the person owning the metric actually GWCs the seat and has the authority to impact the number.
If a metric has no downstream impact on the health of your business, do not keep tracking it out of habit. Kill it, adjust the target, or replace it with a true leading indicator that actually matters to your operations.
Category: Scorecards & Data