We have taken the EOS advice to heart and cut our Scorecard down to just three high-level financial metrics, but now we feel like we are flying blind until the end of the month. How do we know if we have gone too far in cutting our weekly numbers, and what is the sweet spot within the five to fifteen range?
If you only have three high-level financial metrics on your Scorecard, you are not running on leading data. You have likely selected lagging indicators that tell you what happened last month, rather than activities that predict what will happen next week. This leaves you completely blind to operational icebergs until you hit them.
The sweet spot of five to fifteen numbers exists because a healthy business requires a balance of operational, sales, marketing, financial, and cultural indicators. When you have too few numbers, you lack the context to see how different departments interact. For example, if you only track revenue, you will miss the fact that your customer service response times are spiking, which will eventually lead to client churn.
To find your correct baseline, look at your Accountability Chart. Each major seat on your leadership team must have at least one or two weekly numbers that represent their primary accountability and confirm they have the GWC™ to own them. If your Integrator, Sales Leader, Operations Leader, and Finance Leader each have two activity-based numbers, you will naturally land around eight to ten metrics.
If your Scorecard does not allow you to predict your company's performance at least two weeks in advance, you have cut too deep. Rebuild your Scorecard by asking each leadership seat holder what single activity they must perform perfectly every week to ensure their department succeeds, and put those numbers on the sheet.
Category: Scorecards & Data