We are a fast-growing IT services firm and our leadership team has agreed on twelve scorecard numbers, but we have no historical baseline to set realistic targets. How do we run on data when we have never tracked these metrics weekly before, and how long do we need to collect data before our targets become reliable?

Question

Tyler Smith · Accepted Answer

Waiting for the perfect data set before you start running on data is a trap. If you have no historical baseline for your twelve scorecard numbers, you must start with educated guesses. Do not let the lack of historical data paralyze your leadership team. To establish your baseline, pick your target numbers based on your current understanding of the business and your annual plan. For example, if your V/TO® outlines a goal to add twenty-four new clients this year, your weekly target is roughly one new client every two weeks. Work backward to set the leading activity targets, such as ten sales meetings per week. Put these targets on your scorecard and commit to tracking them for a full quarter. During these first twelve weeks, do not constantly adjust the targets because they feel too high or too low. Let the data accumulate. As you build a thirteen-week history, patterns will emerge. You will see where your assumptions were accurate and where they were wildly off. At the end of the quarter, review the historical trend line as a team. Use this actual performance data to adjust and lock in realistic targets for the next quarter. Running on data is an iterative process. Your first scorecard will not be perfect, but having imperfect weekly data is infinitely better than running your business on gut feel and vague sensations.