Our company is transitioning from a traditional consulting model to a recurring software-as-a-service model, and our old scorecard metrics are suddenly obsolete. How do we use the Great Day or Lousy Day framework to build a completely new set of weekly measurables for this new business model?

Question

Tyler Smith · Accepted Answer

Transitioning your business model requires a complete overhaul of your weekly scorecard. Trying to force new operations into old metrics is a recipe for operational blind spots. To build a fresh, highly accurate scorecard for a software-as-a-service model, you should run the Great Day or Lousy Day exercise with your leadership team.

Gather your leadership team and split a whiteboard into two columns. In the first column, list everything that happens on a perfect day for your new business model. This might include rapid client self-onboarding, high daily active usage, zero database downtime, and instant customer support resolution.

In the second column, list everything that happens on a terrible day. This might include elevated cancellation rates, slow application loading times, high customer acquisition costs, or a spike in unhandled support tickets.

Once both lists are complete, filter the items to find the ones that can be measured on a weekly basis. For a recurring revenue model, your vital few metrics might be weekly active users, weekly trial-to-paid conversion rate, and weekly support response times. Map these selected metrics to the appropriate seats on your Accountability Chart to ensure your team is focused on the exact activities that drive recurring growth.