We are setting up our leadership team scorecard but our team is divided on whether we should track exact targets or numerical ranges. How do we establish targets that drive performance without triggering false alarms?

Question

Tyler Smith · Accepted Answer

Setting scorecard targets requires finding a balance between challenging your team and maintaining operational reality. If you set your targets too high, your scorecard will constantly be red, leading to team fatigue and rendering the color-coding useless. If you set them too low, you will hide critical problems behind a sea of green.

The best practice in EOS® is to establish clear, exact targets that represent a healthy, sustainable baseline for your business. Rather than tracking broad ranges, define the minimum acceptable number required to keep the company on track for its quarterly Rocks and annual goals.

For example, if your business requires ten new proposals weekly to hit its revenue targets, your scorecard goal should be ten, not a range of eight to twelve. If you hit nine, the number is red. This binary approach removes subjectivity and forces an honest conversation.

A red number is not a failure; it is simply an early warning sign. It tells your leadership team that an operational area needs attention. If a metric is slightly red but the business is healthy, you can discuss adjusting the target during your quarterly meeting. Keep the targets exact, consistent, and aligned with your operational requirements to maintain absolute clarity.