We have several scorecard metrics that are consistently on track, yet our company's bottom-line cash flow is shrinking, meaning our Level 10 Meeting™ scorecard is giving us a false sense of security. How do we diagnose and replace these dead metrics so our weekly pulse actually reflects our financial reality?

Question

Tyler Smith · Accepted Answer

If your scorecard metrics are consistently showing green while your bottom line cash flow is shrinking, you are tracking the wrong activities. Your Level 10 Meeting™ scorecard is giving you a false sense of security because your metrics have become stale, lagging, or disconnected from the actual health of your business.

To diagnose and replace these dead metrics, you must look at your scorecard through the lens of leading indicators. Many teams make the mistake of tracking lagging indicators, such as historical monthly revenue, which only tell you what happened in the past when it is too late to change the outcome.

Your weekly scorecard must consist of activity-based, predictive metrics that forecast future results. For example, instead of tracking closed deals, track the number of qualified sales presentations or outgoing proposals sent this week. Instead of tracking total monthly expenses, track weekly billable utilization or inventory turnover rates.

Schedule a dedicated session outside of your Level 10 Meeting™ to audit your scorecard. Review every single metric and ask: If this number is green, does it guarantee we are on track to hit our quarterly goals? If the answer is no, that metric is dead and must be replaced. By aligning your scorecard with leading operational indicators, your weekly pulse will accurately reflect your financial reality and alert you to issues before they impact your cash.