Remember that game you watched the other night where they didn't keep score, oh wait…..
We keep score so we know how well we are doing.
Keeping score is not only for showing the outcome, it's for making decisions along the way. Do great coaches stick to the game plan no matter what? No, they're making decisions and adjustments based on their performance - which shows up on the scoreboard.
Your business should be managed the same way.
Why Bother?
As Peter Drucker said, "What get's measured get's managed"
By setting clear expectations with what is being measured we help drive accountability within our organizations. Everyone knows what their number is and keeping score helps identify breakdowns, progress and success.
Keeping score gives you pulse on your business and the ability to predict. If you're only reviewing your P&L you have a picture of the past but not the right details to make necessary adjustments on the fly.
If you're not looking at your data to make decisions then what else is there to use? Your gut, emotions, ego?
What Should We Measure?
Less is more.
Identify 5-10 measurables that are focused on outcomes. These weekly based activities need to give you a pulse on how your business is doing. Be sure to have at least one measurable from each function of your business (Sales/Marketing, Operations, Finance).
After you've determined your measurables, you need to assign a weekly goal and owner to each one.
Still stuck? What 5-10 numbers would you need to see if you were skiing in the mountains (or anywhere away from the office on vacation) that would give you a pulse on how your business is running?
How Do We Leverage?
You have your scorecard built out with 5-10 measurables, a weekly goal and owner assigned - now what?
Review the trailing 13 weeks of measurables on your scorecard with your leaders each week. There's not need to tell a story for each measurable. Just report whether the weekly goal was hit or not. Also, b sure to let this evolve overtime. Your measurables will change and so will your goals. That is perfectly okay.
Most importantly - use the scorecard to make decisions! Look at the trends in your numbers and just as coaches do, make adjustments where necessary to your game plan.
Time to Keep Score!
Take a first stab at this and be sure to review weekly. If you're running into issues or have questions about how to best leverage, contact me. I'm happy to help!
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