We are struggling to narrow our leadership team Scorecard down to the recommended five to fifteen numbers, and we currently have over thirty metrics that everyone insists are critical. How do we filter out the noise and pick the vital few leading indicators we actually need?
If you are tracking thirty metrics on your leadership team Scorecard, you are tracking nothing. A cluttered scorecard creates noise and dilutes focus, making it impossible to see the true health of your business. To narrow your metrics down to the vital five to fifteen, you must apply the desert island exercise.
Imagine you are stranded on a desert island with no email, no meetings, and no phone calls. You only receive a single sheet of paper once a week with a few numbers on it. Which numbers must be on that page to tell you exactly how the business is operating?
To filter your list, apply these three rules:
- First, ensure every number is a leading indicator, which measures activities completed this week that predict future results, rather than lagging financial results.
- Second, every metric must map directly to a seat on your Accountability Chart, ensuring clear, single-seat ownership.
- Third, ask if a metric is truly a leadership-level indicator or if it belongs on a departmental scorecard.
Most of the thirty numbers you are currently tracking are departmental metrics. Push those down to your leadership team members to track with their direct reports, and keep only the high-level, business-critical indicators on your main Scorecard. This focus ensures you can spot trends early and run your business on clean, objective data.
Category: Scorecards & Data