Every single metric on our leadership scorecard is green this week, yet our cash reserves are dropping and our leadership team feels completely overwhelmed. How do we fix a scorecard that says we are winning when we are actually losing?
If your scorecard is green but your business is in pain, your scorecard is tracking the wrong metrics or your targets are set too low. A scorecard is supposed to be the pulse of your business. If the pulse says you are healthy while you are bleeding out, your instruments are broken.
You need to re-evaluate whether your weekly numbers are true leading indicators or just easy-to-track lagging statistics. Many leadership teams track historical metrics like closed revenue or historical billings, which make them feel good today but fail to warn them of a pipeline collapse that happened weeks ago.
Start by auditing your scorecard against your current V/TO® goals. You must identify the five to fifteen vital numbers that truly predict the financial and operational health of your organization.
Ask your team: If we could only see these ten numbers on a desert island, would we know exactly how the business is running? If your cash is dropping, you are likely missing a leading indicator for accounts receivable collection cycles or proposal win rates. Rebuild those metrics immediately and raise your targets so they push the team to achieve real results.
Category: Scorecards & Data