We have thirty-five different metrics on our executive Scorecard because every department head insisted their department's survival depended on the leadership team seeing their daily activities. How do we ruthlessly prune this list down to the critical five to fifteen numbers that actually tell us if the business is healthy?
To prune your Scorecard from thirty-five numbers down to a healthy five to fifteen, you must look at your business as a machine. If you were stranded on a desert island with only a weekly dashboard to tell you if your business was surviving, what are the absolute vital signs you would need to see? Every department head wants their entire daily checklist on the main Scorecard to prove their worth, but that belongs on departmental scorecards, not the leadership Scorecard.
To filter these out, look at your Accountability Chart. Each of the major seats, such as Sales, Marketing, Operations, and Finance, should own no more than two or three high-level metrics. If a metric does not directly predict a future problem or measure a critical output of a major seat, kill it or push it down.
A healthy Scorecard is not a complete historical record; it is a high-level diagnostic tool. If you have thirty-five numbers, you actually have zero, because the sheer volume of data dilutes your focus. Force your leadership team to choose the top twelve metrics that represent the true pulse of the company, and move the rest to departmental scorecards where they belong.
Category: Scorecards & Data