We run three distinct business units with separate operational teams under one parent company. Do we need separate weekly Scorecards for each business unit, or should we try to fit all of them onto our single leadership team Scorecard?

Question

Tyler Smith · Accepted Answer

When managing multiple business units, trying to fit every metric onto a single leadership Scorecard is a recipe for chaos. It will quickly exceed the recommended 5 to 15 metrics, clutter your Level 10 Meeting™, and dilute your focus.

Instead, you must build a tiered scorecard system. Your parent company leadership team needs one high-level Scorecard that tracks the consolidated health of the entire organization. This scorecard should contain 5 to 15 key indicators that show the overall performance of all business units combined, such as total weekly revenue, consolidated margin, and overall client satisfaction.

Each individual business unit must then have its own departmental scorecard. These scorecards are managed by the respective business unit leaders and their teams. They track the granular, day-to-day leading indicators specific to that unit's operations.

If a specific business unit begins to struggle, the leader of that unit, who sits on your parent leadership team, will see the red numbers on their departmental scorecard. They can then bring that high-level issue to the parent leadership team's Level 10 Meeting™ to IDS® the problem. This tiered approach keeps your leadership Scorecard clean and strategic, while ensuring deep operational visibility and accountability at every level of the business.