The Key to Business as Usual (BAU)

Scorecards are often a highly undervalued tool. Plus, it can be hard to develop a good one. In reality, it can take months to get it right, but I promise you it’s worth it! Even when you’ve nailed it, you will still want to review it every 90 days to make sure it gives you data that you can use to make better business decisions.

How Do I Use a Scorecard?

The Scorecard is the way of keeping track of business as usual (BAU), or the stuff that keeps the doors open and the bills paid. For companies Running on EOS™, everyone should have at least one Measurable to keep them on track with their day-to-day tasks. Together, all these individual Measurables create the Scorecard.

We develop Scorecards by thinking about what numbers or Measurables we want to achieve. By reviewing the Scorecard each week in the Level 10 Meeting™, we get a clear picture of whether we’re on track to achieve goals. Measurables can also help us identify Issues.

Forward-Looking Measurables

Measurables should be forward-looking, activity-based numbers with weekly goals that lead to desired outcomes. Forward-looking metrics tell you if you’re on track to hit your monthly, quarterly, or annual goals. They help you better predict the future. They also help you make decisions based on facts rather than ego or emotions.

Leading vs. Lagging Indicators

Strive to have a mixture of leading and lagging indicators. They tell a more complete story, allowing you to become much better at making decisions.

Leading indicators offer a reasonable forecast of future business conditions. They serve as predictors of future team success. For example, the number of sales calls a team has each week could indicate the volume of orders.

Lagging indicators, on the other hand, show the results of the work already completed. In our previous example, it would be the sales created and, thus, the revenue brought in from those sales calls.

Scorecards should exist at the leadership team level to give the leaders a finger on the pulse of the business. Then, in turn, each department and team should have Scorecards whose Measurables report up through the leadership team’s Scorecard Measurables.

Three Common Scorecard Pitfalls

1. Not Knowing What to Measure

Many businesses need help coming up with things that they can measure. Unfortunately, some dismiss it into the too-hard basket.

Start by making a list of what you’d like to measure (if you were on a deserted island, what numbers would give you an absolute pulse on your business?). My advice: the best thing you can do as a team is just start measuring something. Anything.

You’ll very quickly start to understand which Scorecard Measurables are key to making business decisions. Then, you’ll work toward how you can get that data each week.

2. Measuring the Wrong Data

The purpose of a Scorecard is to review weekly how things are going and catch things (both problems and opportunities) before it’s too late.

If you’re looking at data each week and not using it to make decisions, why are you tracking that Measurable? If you’re ignoring the fact that you’re off track each week, it’s time to review the Scorecard and/or have the tough conversations.

Are you measuring the right things? Are they leading to the right outcomes? Do you have a data issue or a people issue?

3. Setting the Bar Too High

Visionaries, in particular, have lofty goals for the sales team or customer service team.

If you set the bar too high immediately, then the run of “red” or “off track” data will likely discourage the team. They might feel it’s impossible ever to achieve their Measurables.

So, why not agree on what is possible and allow the team to get some “greens” or “on track” weeks before raising the bar?

It’s perfectly fine to change the target as you achieve it and use the psychology of winning to move up each week. I encourage teams to agree on when it should be moved up as well. Motivating and inspiring a team is a better way to get them on board.

Quarterly Review

Finally, remember that you can and should review the Scorecard every 90 days.

Do the Measurables reflect what’s happening in the business and what you want to achieve? Are you using the Scorecard to keep the team on track? Do you recognize issues that need to be solved?

Having a Scorecard that gives you an absolute pulse on your business can help your organization continue BAU.