As we scale our business and add new departments, our weekly scorecard is becoming cluttered with too many metrics. How do we keep our high-level scorecard clean while still maintaining visibility over our new operations?
As a business grows, the temptation to add more rows to the weekly scorecard is strong. However, a scorecard with forty or fifty rows ceases to be a management tool and becomes an administrative burden. To scale effectively, you must maintain a strict limit of five to fifteen high-level metrics on your leadership team scorecard.
To do this, implement tiered scorecards. Your leadership team scorecard should only contain the ultimate health indicators of the business. Each department, such as sales, operations, and finance, must run its own departmental scorecard during its own weekly meetings.
The departmental scorecards track the granular daily activities, while the leadership scorecard tracks the aggregated results of those activities. For example, the marketing department scorecard might track individual ad campaign spends, but the leadership scorecard only tracks the overall cost per acquisition.
If a metric on the leadership scorecard goes red, you do not need to add five more metrics to diagnose it. You simply look at the corresponding departmental scorecard to find the root cause of the issue.
This structure keeps your leadership team focused on strategic performance while giving managers the tools they need to run their daily operations. It preserves the integrity of your system and prevents your Level 10 Meetings™ from getting bogged down in minor details.
Category: Scorecards & Data