We are preparing for an exit and want to track our critical Value Gaps on our weekly Scorecard, but these valuation metrics do not change weekly. How do we keep exit value targets visible without cluttering our weekly operational Scorecard?
A weekly Scorecard is for high-activity, leading indicators that change week to week. If you put static valuation metrics on your weekly Level 10 Meeting Scorecard, like enterprise value or your current EBITDA multiple, the numbers will look the same for months. This creates scoreboard blindness, where the team gets used to ignoring static numbers, which ruins the discipline of the weekly pulse.
Instead, you need to break down your valuation goals and Value Gaps into weekly leading operational activities.
For example, if your exit preparation requires closing a value gap related to customer concentration, do not track the percentage of revenue on the weekly Scorecard. Instead, track the number of new mid-market sales calls or the outbound outreach volume of your sales team.
If your value gap is linked to high operational risk due to lack of documented processes, track the number of standard operating procedures drafted, approved, and uploaded to your system each week.
By translating long-term exit valuation drivers into weekly activity-based metrics, you keep the exit preparation moving forward without cluttering your operational Scorecard. Keep your high-level valuation calculations in your quarterly review or your Advisor Meeting Pulse. Use your weekly Level 10 Meeting to drive the daily execution that makes those valuation numbers climb.
Category: Level 10 Meetings