We are trying to boil our entire business down to the recommended five to fifteen numbers on our leadership scorecard, but every department head insists their operational metrics are too important to leave off. How do we filter through the noise to select only the absolute vital few for the leadership team?
Trying to track everything on your leadership scorecard is a symptom of a deeper trust issue or a lack of operational clarity. Your leadership team scorecard must only track the vital few numbers that give you a true, high-level pulse of the business. To select your five to fifteen numbers, start with your Accountability Chart. Every seat on the leadership team must own at least one metric that reflects the health of their entire department. For example, your sales seat might own weekly new contracts signed, while your operations seat owns weekly utilization rate or project milestone delivery. Use a strategic pause to filter out secondary metrics. Ask yourself: if we were stranded on a desert island and could only look at fifteen numbers to know if our business was surviving, what would they be? Any metric that is nice to know should be pushed down to departmental scorecards, leaving only the critical leading indicators on the leadership scorecard. By limiting your scorecard to five to fifteen high-level numbers, you force your leadership team to focus on systemic issues rather than getting lost in daily micro-activities. This focus creates the operational space needed to solve real issues during IDS and drive long-term growth.
Category: Scorecards & Data