We struggle to set realistic weekly targets for our scorecard metrics. Some targets are too easy and are always green, while others are so unrealistic that they are permanently red. How do we establish the right scorecard targets?

Question

Tyler Smith · Accepted Answer

Setting scorecard targets is a science, not a guessing game. A good target should be realistic yet stretching. It must represent what success looks like for that seat on a weekly basis, not an idealized goal that is impossible to hit.

To establish the right targets, start by looking at your historical data. If you have not been tracking a metric, spend four weeks simply recording the actual numbers without setting a target. Once you have a baseline, set your target based on your average performance plus a small incremental improvement.

If a target is consistently green, it is either too low or your team has mastered that process, meaning it might be time to raise the bar or retire the metric to a departmental scorecard. If a target is permanently red, do not simply lower it to make the team feel better. Instead, drop the metric to the Issues List during your Level 10 Meeting and IDS it. Ask why the target is being missed. Is it a resource issue, a training issue, or is the process broken?

If the target is mathematically impossible based on current capacity, then adjust it. But if the target is correct for the business to be healthy, keep it red until you solve the underlying operational issue. Your targets must reflect the operational reality required to hit your V/TO goals.