Many people seem to have an innate love of activity and busyness, even if it doesn’t produce desired results. This phenomenon extends to many workplaces in that the collective behavior of the group is to value activity over outcomes, even misguided activities. Business owners shouldn’t wait until well after month or quarter end to determine how well their company performed because by then it is too late. By installing the following two EOS® tools, these issues can be rectified.
When properly constructed, a Weekly Scorecard will give owners and their leadership team a weekly predictive pulse on the business. If each week is on track, then your month will be on track; if each month is on track, then your quarter will be on track; and if each quarter is on track, then the business will hit its goals for the year.
The hardest part in creating a scorecard is finding the 5 to 15 metrics that give the greatest insight into last week’s activity so as to predict future results. Leadership teams typically begin by brainstorming a long list of potential metrics, and then whittle that long list down over a number of attempts to find the right scorecard for their business. Each metric needs (i) a person responsible for the performance of that metric, (ii) a weekly goal, and (iii) the past 13 weeks of history so as patterns and trends can be quickly discerned.
Once the leadership team has mastered the companywide scorecard, then departmental leaders can begin to build out scorecards for the areas they lead.
The intent of measurable is for everyone in the organization to have a number that represents success for their role. For instance, billable producers in a service based consultancy could have a weekly billable hours expectation to clearly measure their contribution to the overall success of the organization. Another typical measurable for a service based firm is a minimum utilization % production staff must maintain.
Still not convinced?
Many people, even leaders, are skeptical of such use of data. In the book Traction, Gino Wickman cites the following eight advantages to everyone having a number:
- Numbers cut through murky subjective communication between manager and direct reports.
- Numbers create accountability.
- Accountable people appreciate results.
- Numbers create clarity and commitment.
- Numbers create competition.
- Numbers produce results.
- Numbers create teamwork.
- You solve problems faster.
The old adage “what gets measured, gets done” is a timeless piece of wisdom. What do you want done in your business? Then measure it!
- Read the Chapter 5 of Traction “The Data Component” and implement a Weekly Scorecard and Measurables in your organization.
- Visit navigatethejourney.com and schedule a call with us for a complimentary Company, Team or Leader diagnostic.
About the Author
Tom is a Professional EOS Implementer™ and the CEO of Navigate the Journey, a firm that specializes in helping the owners of entrepreneurial companies improve at the company, team and individual leader levels.