By Jerry Kauffman, EOS Partner
Imagine yourself on a desert island with no electronic connectivity. You’re napping, having a cold beverage, or reading a book. Someone hands you a piece of paper (no text or email) with about 10 numbers (measurables) on it. You look at the measurables and immediately know if you can go back to what you were doing in full relax mode or if you need to quickly make plans to get back to your company to address a critical need.
The Company Scorecard
In my work as a Certified EOS™ Implementer, I help leaders of entrepreneurial organizations implement EOS (Entrepreneurial Operating System). We often talk about achieving clarity, focus, and alignment in their organization. Many companies have great people who genuinely want to contribute, but leadership has not done a great job of providing clarity of the best way these folks can do so. One of the EOS Foundational Tools is the Scorecard, critical to creating alignment. The process starts by creating a Company Scorecard: the “critical few” objective that includes measurable data points to give you a pulse on the business and let you know how the business is doing.
As in the island example, these are the critical “need to know” numbers, not the “I’d like to know” or “I wish I knew” or endless spreadsheets of numbers. Measurables should be a) forward looking, b) action oriented, and c) measured weekly. Think of driving down the road. Your rear-view mirror is small and you only look at it occasionally. Your dashboard is larger and you check it regularly so you don’t overheat or run out of gas. The windshield is huge and you spend most of your time looking forward. Is there a deer in the ditch? Is a curve coming? Is there a slow-moving truck ahead or taillights coming on? What actions do I need to take to stay safely on the road?
Scorecards tell you if you are on track with your intended path (road) of if you need to adjust. An “off-track” number is like a rumble strip or those taillights ahead. Slow down, steer left, adjust speed, go on high alerts for what might happen.
Individual Scorecards Contribute to the Company Scorecard
I always start with the Company Scorecard; the next steps are to determine critical numbers at the department or team level. Eventually, we have a number (or two or three) for every person in the company. Those numbers are on a Scorecard or directly aligned with it. If I hit my numbers, it means my team hits our numbers and the company hits its numbers: ALIGNMENT.
If an individual has a hard time figuring out good measurable(s), ask them how they know they had a good day. What happened? How can you measure that? You might get a blank look at first because many managers don’t ask that question, but if you persist, you will spark some great thinking and conversation, teasing out numbers (measurables) that really make a difference in getting everyone aligned and rowing in the same direction.
Imagine a rowing crew where each crew member rows when and how they feel like it and compare that image to the amazing synchronization and symmetry of an excellent crew. Hilarious unless you realize your team might be more like the random rowers than the disciplined, well-trained crew.
Is your crew working really hard, but thrashing the water to a frenzy in one spot? Or are they surging forward and skimming towards the goal line?
Good Scorecarding = Good Alignment
Good scorecarding seems simple and obvious. It can be, but it requires some deep thinking about what measurables are critical and the discipline to keep those numbers on track. Do it and you’ll have clarity, focus, and alignment. Take your chance and you might still get there, but everyone will be tired and the best rowers will be looking for a better crew to join. I challenge you to go back and reread this article, thinking now specifically about YOUR function and what measurables show that YOUR efforts are aligned with the objectives of YOUR team and organization.
For more, go to the EOS Worldwide blog and search for Scorecard. You’ll find some great nuggets to spark your thinking.
