Our weekly scorecard is entirely green and every department claims to be hitting their targets, but our actual company performance and customer feedback indicate we are losing ground. How do we diagnose a scorecard that lies to us?
When your scorecard is green but your business is hurting, you are measuring the wrong things or your targets are too low. A healthy scorecard should be a hard-nosed, predictive instrument. If it is constantly green while your bank account is shrinking or clients are leaving, your metrics are likely lagging indicators or vanity metrics disguised as progress.
First, audit your metrics to see if they are activity-based rather than outcome-based. Tracking completed phone calls or sent emails is useless if those activities do not lead to qualified pipeline. You must push your leadership team to define true leading indicators. For example, instead of tracking service tickets resolved, track first-contact resolution rate or average resolution time on high-priority issues.
Second, look at your targets. If your team hits their numbers every week without breaking a sweat, your targets are set for comfort, not growth. Raise the bar until the scorecard occasionally runs red. Red numbers on a scorecard are not a failure; they are an early warning system designed to trigger the IDS® process in your Level 10 Meeting™.
Third, ensure there is a clear connection between your weekly scorecard and your quarterly Rocks. If your weekly numbers do not move the needle on your strategic goals, you are tracking the wrong activities. Rebuild your scorecard from scratch if necessary, focusing on the five to fifteen critical numbers that actually dictate the cash, capacity, and direction of your company.
Category: Scorecards & Data