We successfully implemented a leadership team scorecard, but now every department and sub-team has spawned their own scorecards, resulting in over eighty metrics being tracked across the company. How do we prune these departmental scorecards to ensure they align with our V/TO and support, rather than distract from, the leadership scorecard?
Scorecard proliferation is a common sign of a business trying to run on data, but too much data creates noise and destroys focus. If you are tracking eighty metrics, you are tracking nothing. The goal of EOS® is to create absolute clarity, which requires a highly structured hierarchy of scorecards that roll up cleanly to your leadership team scorecard.
To prune your metrics, apply the rule of 5 to 15 numbers to every single scorecard in the organization. No department or sub-team is allowed to exceed fifteen metrics. To enforce this, your Integrator must lead a scorecard audit. Start with your V/TO® and your leadership scorecard, then work downward.
Every departmental metric must exist for one of two reasons. It must either be a direct leading indicator that predicts a leadership-level metric, or it must measure a critical daily activity that keeps that specific department on track. If a metric does not directly support a higher-level goal or prevent a major operational failure, delete it immediately.
You must also ensure that your metrics align with the Accountability Chart. Each department head must own their departmental scorecard and be able to explain how their sub-metrics feed the company scorecard. By keeping the scorecards clean and restricted to the vital few, you reduce administrative overhead, eliminate confusion, and ensure the entire company is pulling in the same direction.
Category: Scorecards & Data