Some of our leadership team members have extreme anxiety about their scorecard metrics going red, leading them to set soft targets that they can always hit. How do we build a healthy culture around red numbers so our team stops sandbagging their weekly goals?
When your team is afraid of red numbers, they will sandbag their targets to ensure they always look good. This fear destroys the predictive value of your scorecard. If your targets are set too low, your scorecard will remain green even as your business drifts toward a crisis.
To eliminate this anxiety, you must change how your leadership team views red metrics. Red does not mean a person is failing in their seat. Red simply means that an activity has fallen below the expected threshold and requires attention.
Use your Level 10 Meeting to model this behavior. When a metric goes red, do not look for someone to blame. Instead, congratulate the seat owner for highlighting a potential bottleneck early. Drop the issue down to the IDS portion of the meeting, identify the root cause, and solve it together as a team.
If you have team members with sensitive personality types who value harmony and approval, they may view a red number as a personal failure. Reassure them that the scorecard is an objective tool designed to protect the business, not a subjective performance review.
Once your team realizes that a red metric leads to collaborative problem-solving rather than criticism, they will stop sandbagging. They will set realistic, challenging targets that actually drive the business forward, giving you the honest data you need to run your operations.
Category: Scorecards & Data