Video excerpt from the EOS Lead Now Webinar: Scorecard in a Crisis. Watch the complete video here.
Leaders of entrepreneurial companies are usually being pulled in many directions at once. When everything feels so mission-critical, it can be difficult to know what to tackle first. That’s where data comes in.
Referring to the data on your company Scorecard can help you get clarity on what you need to focus on right now.
Your company Scorecard is more critical than ever, so we’ve dedicated an entire Lead Now session, as well as this blog, to be a class in “Scorecard 101.”
Understanding The Data Component
The EOS Model® provides a visual illustration of the Six Key Components™ of any business that must be managed and strengthened to be a great business. This model applies to big and small businesses alike, in any industry:
Right now, understanding the Data Component™ is especially critical to stabilizing or even saving your company. This means cutting through all the feelings, personalities, opinions, and egos, boiling your organization down to a handful of objective numbers that give you an absolute pulse on where things are.
“During times of crisis, we have to take a little closer look at your numbers,” says Mark O’Donnell, Certified EOS Implementer® and Head Coach at EOS® Worldwide.
The Data Component has two tools:
The Measurables are the metrics chosen to be tracked on the Scorecard. Let’s take a look a closer look at the Scorecard and how it’s used by companies running on EOS.
What Is A Company Scorecard?
Your Scorecard is a simple spreadsheet that is used to track weekly, activity-based numbers, with weekly goals, which lead to desired outcomes.
For example, this might mean documenting the activities in the sales pipeline which move a suspect through the pipeline to prospect, hot prospect, and finally to the customer. Items like qualification calls, required assessment meetings, capabilities presentations, and quotations are also examples of Scorecard activities.
The current economic crisis has made the Scorecard a more important tool than ever because it can help you stay grounded in reality and focused on the things that need your immediate attention.
Use the Scorecard to:
- Provide clarity as to what management expects from everyone (this works between management levels as well)
- Empower employees to self-manage, which frees up management to focus on other challenges
- Proactively anticipate problems before they actually happen
Do A Weekly Scorecard Review
Every department in your company should use a Scorecard and the department head should make it clear to each employee that they must ‘own their numbers’ on that Scorecard. Every employee needs to know their numbers because this is an all-hands-on-deck moment in your company’s history.
The Scorecard contains five to 15 high-level numbers for the organization. Here are some examples:
- Number of sales calls
- Cash flow/cash runway
- Number of sales calls
- Expected collect dates
- Invoice dates
What Is Your Scorecard Telling You?
We don’t have a crystal ball to see what is going to happen two quarters or a year from now so the best we can do is manage today.
Use your Scorecard to keep laser-focused on what your goals are right now and make sure everyone knows their numbers and is working toward hitting them.
Go Deeper: Additional Resources About Scorecards
- Five Steps To a Great Scorecard by Ken DeWitt
- Scorecards vs. Dashboards by Ed Callahan
- A Great Week = A Great Scorecard by Mike Paton
- Full video: https://www.eosworldwide.com/webinars/scorecard-in-a-crisis
- Download the Scorecard Template from the EOS Toolbox to learn to create a scorecard of your own.
- Learn to make decisions faster and better by downloading a copy of our free EOS eBook, Decide!
- Download a free chapter of Traction by Gino Wickman.