We have a critical operational metric that has been red for six weeks, yet the owner insists that the department is running smoothly and that the target is simply unrealistic. How do we determine if we need to adjust the target or address a performance issue?

Question

Tyler Smith · Accepted Answer

When a metric is consistently red but the owner insists that everything is fine, you have a mismatch between your operational reality and your scorecard targets. This scenario requires an immediate investigation. First, use the IDS process to challenge the target itself. Ask the owner to prove why the target is unrealistic by showing the historical data and capacity constraints. If the target was set arbitrarily during a planning session without mathematical backing, it may indeed be invalid, and you should adjust it. However, if the target is aligned with your financial goals on the V/TO, then everything is not fine, and the leader is likely avoiding a hard truth. They may be suffering from a capacity issue, a process bottleneck, or a lack of GWC for that specific responsibility. Do not allow a red metric to be ignored just because the leader is comfortable with it. A red number is a call to action. By forcing a candid discussion around why the data does not match the leader's perception, you uncover the real issues holding your business back.