Running Your Business on Instinct Could Kill Your Company

You have probably heard the saying: “fly by the seat of your pants.” You can actually fly a plane by “feel,” but not when visual references are gone (i.e., flying through clouds).

Prior to entering the clouds, every pilot is taught to reference their instruments and ignore what’s going on outside the window. Simply put, our body indicators are not capable of providing accurate feedback with the absence of visual references. Trusting your instinct at this point could be deadly.

Don’t Run Your Business on Instinct

The same rule applies to running a business. We can “fly by the seat of our pants” for a while. But as your business grows and gets more complicated, instinct alone will not suffice. We need more information to accurately assess what’s coming down the pike.

The key is to determine which instruments to monitor and to develop a discipline around scanning often and taking early action. The scorecard is a tool from the EOS toolbox that encapsulates key indicators (measurables) that will help predict future outcomes.

How to Monitor Your Business

Imagine 5-15 key indicators that give you an early view of what’s going to happen in all key areas of your business. These could include things like future revenue, future cash flow, future productivity, future customer satisfaction, etc.

Consider the Scorecard as a sophisticated instrument panel for your business. It’s a modern-day crystal ball that will give you early indications of when things get off track and need your attention.

Relying on your instinct has its time and place. Just remember that false indicators can be deadly – both in the cockpit and in your business.

Next Steps

This article was originally published in the Blue Core Leadership blog on August 3, 2016.

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