We have several weekly metrics on our Scorecard that have been red for six weeks, but our operational efficiency and profit margins are actually improving. How do we determine if our team is underperforming, or if we are simply tracking the wrong numbers on our Scorecard?

Question

Tyler Smith · Accepted Answer

A great Scorecard is a living document that requires constant refinement. If your Scorecard is flashing red for weeks but your business is thriving, you have a mismatch between your metrics and your reality. You are tracking activity that does not actually drive your bottom-line success. To determine if you are tracking the wrong metrics, you must put those numbers through a simple diagnostic test in your next Level 10 Meeting™. First, check the correlation. Ask your leadership team if the red metric actually impacts your core business results. For example, if you are tracking weekly cold calls and that number is red, but your revenue is growing because your referral channel is booming, you are measuring the wrong activity. Your leading indicator should shift to referral requests sent. Second, evaluate the target. It is possible that the metric is correct, but your target is unrealistic or arbitrary. Review whether your target was set based on historical data or just a guess. Third, ensure the metric owner GWC™ the seat, which means they Get it, Want it, and have the Capacity to do it. If they do not, they may be tracking the wrong activities because they do not understand the role. Do not let dead or irrelevant metrics clutter your Scorecard. If a red number does not correlate with operational or financial pain, kill it and find a better leading indicator that actually predicts your success.