We have historically used our profit and loss statement and monthly balance sheet to run our leadership meetings, but we want to shift to leading indicators on our weekly Scorecard. How do we translate our main financial goals into weekly activity metrics that actually predict our future revenue?

Question

Tyler Smith · Accepted Answer

Your profit and loss statement is history. Running a business on lagging financial metrics is like driving a car by looking solely in the rearview mirror. You only find out you crashed after it has already happened. To run on data, you must translate your annual revenue and profit goals from your V/TO® into weekly, activity-based leading indicators on your Scorecard.

To do this, work backward from your financial targets. If your goal is to close two new clients per week, look at the upstream sales behaviors required to get there. How many proposal presentations does it take to secure two closes? If your conversion rate is fifty percent, you need four proposals per week. To get four proposals, how many discovery calls do you need? If that conversion is fifty percent, you need eight discovery calls. This means your weekly Scorecard metrics should track discovery calls completed and proposals sent.

By tracking these activity-based numbers every week, you can predict your revenue weeks before it shows up in your bank account. If your weekly discovery calls drop to three, you know your revenue will take a hit next month. This early warning system allows your leadership team to address the issue in your Level 10 Meeting™ and course-correct before the lagging financial statements reflect the damage. Focus on activity, not just results.