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Our leadership team is struggling to stick to the limit of five to fifteen metrics on our scorecard. We feel like we are leaving out critical operational details. Why is this range so strict, and how do we enforce it?

The human brain can only focus on a few critical variables at once before cognitive fatigue sets in. If your leadership team is tracking thirty or forty numbers on your weekly scorecard, you are not running your business on data; you are drowning in it. When everything is important, nothing is important. The range of five to fifteen metrics forces you to identify the absolute vital signs of your business. These are the leading indicators that predict your future success, not just lagging indicators like monthly revenue or net profit. If these key numbers are healthy, the rest of your operational details will naturally fall into place. To enforce this limit, you must distinguish between your leadership team scorecard and departmental scorecards. Your leadership scorecard should only contain high-level metrics that show the health of the entire organization. Every other operational detail belongs on a departmental scorecard managed by your individual teams. If a leadership team member insists on adding a new metric, they must remove an existing one. This one-in, one-out rule forces a healthy debate about what truly matters. If a metric has been green for six months and never changes, remove it or move it to a departmental scorecard. Keep your leadership scorecard focused strictly on the absolute dials that drive your business forward.

Category: Scorecards & Data

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