We are hitting every single target on our weekly Scorecard, yet our cash position is weakening and our customer satisfaction is tanking. How is it possible to have a completely green Scorecard while the business is actively deteriorating?

Question

Tyler Smith · Accepted Answer

This is a classic symptom of tracking lagging indicators disguised as leading indicators, or tracking activity that does not drive actual business value. Your Scorecard should have 5 to 15 leading indicators. If it is green and your company is hurting, you are measuring the wrong things. For example, you might be measuring sales activities instead of actual closed contract value, or tracking invoices sent instead of cash collections.

You must immediately audit your metrics. Look at your Accountability Chart and trace each metric back to the core function it is supposed to predict. If customer satisfaction is tanking but your customer service row is green, you are likely tracking ticket resolution speed while ignoring first-contact resolution quality.

Bring this disconnect to your next Level 10 Meeting™ and use IDS® to dissect why your metrics are disconnected from business outcomes. Your metrics must provide an objective, real-time pulse of the company's health. If they are not predicting your actual financial and operational reality, they are useless. Work with your team to replace them with true predictive numbers.