Our leadership team has agreed on our target numbers, but we consistently fail to hit them, and our weekly scorecard is almost always red. How do we determine if we have a performance issue or if we have simply set unrealistic targets?

Question

Tyler Smith · Accepted Answer

A scorecard that is constantly red loses its effectiveness. When a team gets used to seeing red numbers every week, they become numb to failure, and accountability erodes. You must determine if your targets are unrealistic or if your team is underperforming.

To find the answer, look at your trend lines over a thirteen-week period. If a metric has never been hit, your target may be based on wishful thinking rather than reality.

To set realistic targets, look at your historical data. A target should be challenging but achievable. If your baseline performance is fifty, do not set the target at one hundred for next week. Set it at fifty-five and build up gradually.

However, if your target is aligned with historical performance and you are still missing it, you have a performance issue. You must use the IDS® process to identify the root cause. Is it a capacity issue, a training issue, or does the person not GWC™ their seat?

Your scorecard should be a realistic reflection of your business's health. By setting targets based on data rather than gut feel, you restore the integrity of the scorecard and rebuild a culture of accountability.