We have a scorecard metric that has been red for two months, but our team is performing exceptionally well, client satisfaction is high, and profits are strong. Should we change the target, or does this indicate our scorecard is flawed?
When a metric is consistently red but the business is thriving, you have an alignment problem. Either your target is unrealistic, or the metric itself is irrelevant to your actual business success. Keeping a permanently red metric on your scorecard is toxic because it desensitizes your team to red numbers, eroding the entire culture of accountability.
First, evaluate the target. Was it set during a period of unrealistic optimism, or is it based on outdated operational assumptions? If the target is simply too high for your current capacity but the business is healthy, adjust the target to reflect a realistic, sustainable baseline.
Second, evaluate the metric's relevance. If you are hitting your revenue and profit goals despite missing this specific metric, ask yourself if this number actually drives your success. You might find that the activity you are tracking does not have a direct causal relationship to your outcomes.
If the metric is irrelevant, delete it immediately. If it is relevant but the target was wrong, adjust the target. Your scorecard must reflect reality; a permanently red metric that everyone ignores is a symptom of weak data discipline.
Category: Scorecards & Data