Most great companies have one thing in common: They manage their business by tracking a handful of key metrics. Managers use these metrics to forecast, identify trends, and improve decision-making. Larger companies tend to wait for the monthly, quarterly or annual P&L (profit and loss) report to review these metrics. However, as a small to mid-sized business owner, tracking your key metrics on a weekly Scorecard will be of greater benefit and provide three critical needs:
- Keep your finger on the pulse of the organization
- The ability to predict
- The assurance that your processes are working (because the numbers are tied to your processes)
So, how do you choose what metrics to list on your company’s Scorecard? Here’s a scenario to present your leadership team: You’re on an island and can’t communicate with any of your team members. The cabana server brings you a sheet of paper with numbers on it. Those numbers tell you exactly how the business is doing. What would those numbers be for your business?
Have everyone write down the numbers they think must be on the Scorecard.
Once you have agreed on the 7-15 key metrics, decide who will be accountable for each number and set a weekly goal. Then, let your Scorecard evolve into something you love over the next 1-3 months. Download the EOS Scorecard at http://nonahood.to/eosscore and get your finger on the pulse of your organization!
Chris is a successful entrepreneur, author and head coach at Traction in Florida. He’s passionate about helping entrepreneurs get what they want from their businesses. Learn more at http://tractioninflorida.com.