tyler-smith.com · Questions & Answers

As the owner preparing for an exit, I need to transition our leadership team from running on gut feel to running on data, but they claim their departments are too complex for a handful of metrics. How do we pressure-test their resistance and force them to pick their vital few numbers?

The claim that a department is too complex to measure with a few numbers is a defense mechanism. It usually points to a lack of clear accountability or a fear of being measured objectively. As an owner preparing for a clean exit, you cannot afford to let this resistance slide. Buyers will not pay premium multiples for a business run on gut feel.

To break this resistance, use the Accountability Chart. Every seat has major accountabilities. Ask your leader, If you were on a beach with no phone access and could only look at three numbers to know if your department was succeeding, what would they be?

Force them to identify the absolute leading indicators of activity. If they run marketing, it is not brand awareness. It is the number of qualified leads generated this week. If they run customer service, it is not overall customer happiness. It is response time and unresolved tickets.

Remind your team that the leadership Scorecard is limited to five to fifteen vital numbers for the entire company. This means each department head only gets one to three metrics on the main Scorecard. Everything else belongs on their departmental scorecards.

If they still resist, set temporary targets yourself and run them for thirty days. This pressure tests the metrics. They will quickly propose better numbers once they realize they are being held accountable to your metrics.

Category: Scorecards & Data

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