Our leadership team missed a weekly Scorecard measurable for three consecutive weeks and wants to lower the target immediately to keep it green. What is the rule for adjusting targets versus bringing the gap to IDS?

Question

Tyler Smith · Accepted Answer

Lowering a Scorecard target simply because your team missed it for three weeks destroys the integrity of your Data Component. A red box is not a personal failure or an indictment of your team. A red box is an early warning system doing its job. It signals that an operational breakdown has occurred upstream before it damages your bottom line.

Follow this strict operational protocol when a metric falls into the red:

- Keep the Target Unchanged: Never adjust a weekly target in reaction to short-term performance misses. The target was established during your Quarterly or Annual Planning session based on what the company mathematically requires to achieve its financial plan.

- Drop the Measurable Down to the Issues List: When a number is off-track for two consecutive weeks, drop it down to the Issues List of your Level 10 Meeting. Use IDS to uncover the true root cause. Ask whether the shortfall is caused by poor execution, broken process handoffs, capacity bottlenecks, or insufficient resources.

- Solve the Underlying Execution Issue: Execute weekly To-Dos or establish a quarterly Rock to fix the operational constraint and return the number to green.

There is only one scenario where a target should be adjusted: when a structural change in your business model, pricing strategy, or core process renders the original mathematical baseline obsolete. Even then, target adjustments should only be evaluated and approved during your full-day Quarterly Planning session, never on the fly inside a weekly Level 10 Meeting.