Our leadership team wants to assign shared ownership to our weekly Gross Margin metric because both sales and operations impact it. How do we determine which single seat on the Accountability Chart actually owns a Scorecard number when multiple seats influence the outcome?
In EOS®, there is an absolute rule: only one person can own a number. Shared ownership is no ownership. When two people own a metric, nobody owns it, and during your Level 10 Meeting™, each person will inevitably point across the table at the other when the number turns red.
To assign single ownership to a metric influenced by multiple departments, such as Gross Margin, trace the metric back to the seat on your Accountability Chart that holds the final operational veto or execution authority. Gross margin is influenced by pricing (Sales) and labor or material cost (Operations). If your sales team prices jobs accurately according to strict guidelines, but operations routinely blows the labor budget, the Operations seat owns the delivery cost variance.
If pricing discretion sits with Sales, assign an upfront pricing integrity metric to Sales, and assign direct job cost or labor efficiency to Operations. If you insist on tracking blended Gross Margin on the leadership Scorecard, assign it to the Integrator or the seat with ultimate operational control.
Every measurable must have a single name beside it. That person does not have to do all the manual work to hit the goal, but they are solely responsible for explaining the variance, dropping it down to the Issues List, and driving IDS® to fix it when it is off track.
Category: Scorecards & Data