Clear the Fog – Strengthen Your Data Component

EOS Scorecard

Most entrepreneurs know well the feeling of “flying blind.” It can feel like you’re running your business and making big decisions on vague sensations, feelings and emotions rather than using data that helps you make a quick, but fully informed, unbiased decision.

During a week in which your company wins a big order, you get some positive feedback from an important customer, and finally find the right person to fill a key seat – it can feel like you run the best business in the world. As early as the following week – after losing a big sale, getting a nastygram from a longtime customer, and dealing with a few people issues – you can feel just as certain you’re running the most troubled company on the planet.

3 Steps to Strengthening the Data Component

Of course, In both cases, you’re typically wrong. Emotions run high when you’re running an entrepreneurial company, and when those emotions get extreme, they can cloud your judgment. That’s where a strong data component comes in.

As a card-carrying Visionary myself, I’d never advocate for dismissing the great gut feel most entrepreneurs use to make decisions. That raw instinct is extremely valuable, but I’ve seen firsthand that the best decisions are made when you temper that gut feel with real, objective data. Strengthening your data component will help you do that, without slowing down your decision-making process. Here’s how:

Step 1: Build a great leadership team scorecard. Identify and track 5 to 15 weekly numbers that give you an absolute pulse on your business. By looking at 13 weeks of history on each of those measurables at a glance, you’ll start to see patterns and trends develop that tell you whether or not a one-time event – like winning or losing a big piece of business – is really something worth reacting to.

Step 2: Build great departmental scorecards. Is there a handful of weekly, activity-based numbers that will give you an absolute pulse on your sales and marketing efforts? What about operations? Accounting and finance? Can you track leading indicators that predict desired results next month or next quarter? How cool would it be if your sales team reacted when sales proposals were off-track, rather than waiting until sales orders were off-track? Departmental scorecards are valuable because they provide leaders and managers with data that drives accountability for keeping numbers on-track and demands proactive problem-solving in the trenches.

Step 3: Make sure everyone has a number. Ultimately, you want everyone in your organization to be looking at a scorecard each week, and to feel accountability for keeping one, two or three measurables on-track. That connects each employee to specific actions that help the company achieve its vision, and execute on its plan. It helps employees to “self-manage” and proactively seek help from their supervisors when they’re off-track.

If you’re flying blind, consider taking these three steps to strengthen your data component. If you do, you’ll find that your business will become more peaceful, more profitable, and ultimately more fun.

Next Steps

Lead Now IDS Sessions - Public

Related Posts

Four Steps to Solving Issues

When coaching a team to run on the Entrepreneurial Operating System® (EOS®), I love showing them how to actually solve their issues. At EOS, we say issues are problems, challenges, obstacles, opportunities, and new ideas worth your attention. Issues can be anything – good or bad – that your team may need to resolve. As part of the Level 10 Meeting™ agenda, leaders Identify, Discuss, and Solve (IDS™) business issues for the majority of the meeting. Below I’ll break down the four steps to solving issues forever.

Read on »

How to Rock Your Priorities

Early on in the journey to mastering running on the Entrepreneurial Operating System® (EOS®), I occasionally encounter resistance from leadership team members. During a mid-quarter check-in, they’ll complain about the “extra work” caused by their Rocks or quarterly goals. We worked hard in previous sessions to identify the MOST important priorities for the business for the next 90 days. What caused this head-scratcher? To learn how to rock your priorities, we have to get to the root cause of this common complaint.

Read on »

The Evolution of “Team One”

Many business leaders make it to the top by looking out for Number One (aka themselves). When the company they work for begins running on the Entrepreneurial Operating System® (EOS®), they have unlearning to do. EOS requires the leadership team to act as an actual team. Instead of looking out for Number One, they evolve into “Team One.”

Read on »

Subscribe to the EOS Blog

EOS Worldwide

Subscribe to the EOS Blog:

LOGIN TO

Base Camp

LOGIN TO

Client Portal

LOGIN TO

ORGANIZATIONAL CHECKUP

Search the EOS Worldwide Blog

Search
Generic filters