A great scorecard that measures the key metrics in your business brings clarity and drives growth inside a company.
A scorecard in the Entrepreneurial Operating System® (EOS®) typically has 10-15 measurables you’re tracking at any given time. Of those 10-15, maybe 1-3 will be the key numbers that truly drive your business.
But identifying the right numbers is a process of discovery that takes some trial and error. Here’s how to approach building a scorecard from scratch—plus 3 scorecard examples.
Notice the Metrics You Talk About a Lot
What are the numbers your leadership team naturally focuses on? The numbers you tend to talk about (and obsessing over) are a good starting point for identifying scorecard items.
Look in the Usual Places
Sales, finance, and operations are the most common departments that carry scorecard metrics. Sales is often low-hanging fruit, but delivery, customer satisfaction, and efficiency matter too.
Measure at the Front Lines
Your scorecard should reflect performance throughout your organization. Get out of the executive offices and start looking for metrics-driven by front-line employees.
Borrow from the Competition
Standard industry metrics (i.e., what your competitors are measuring) can guide you to the right scorecard numbers. However, industry metrics should be carefully vetted. Measuring a different (and better) number than your competitors could give you an edge.
You may have other numbers that matter to you. My coach talks about 100 days working, 100 days with family, 100 days off. That’s his own personal scorecard, and those numbers outside the business are just as meaningful.
Measure Less, Not More
When entrepreneurs first start building a scorecard, they want to measure everything. That which gets measured gets done, right? But you can’t meaningfully measure too many metrics. Keep your company scorecard lean: anything unnecessary becomes a distraction.
Test, Analyze, Adjust
The metrics on your scorecard may be educated guesses at first. Use the EOS 90-day rhythm to test your hypothesis. After 90 days, evaluate whether your scorecard helped you predict and drive the business forward. If not, shift gears and try a different metric. Keep swinging the ball.
Key Drivers on Client Scorecards
Statlinx is a call center that provides answering service and appointment scheduling and confirmation services for physicians. Read more about their scorecard journey here. Their scorecard keeps it simple.
CE Painting is a commercial painting company that subcontracts with general contractors and construction companies. This scorecard helped propel CE Painting to a spot on the Inc. 5000.
Piping Systems Inc. offers piping services for HVAC, fire protection, electrical, and other projects. Their comprehensive scorecard addresses everything from cash flow to customer service.
The bottom line: if you don’t have an effective scorecard, building one should be a top priority. Our consultants can help you identify the right metrics to move the needle in your business, so contact us if you’d like some help.
Founder & President
Crews Consulting Group
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Skimmed it? Here’s the recap:
— A scorecard in the Entrepreneurial Operating System® (EOS®) typically has 10-15 measurables –but only 1-3 of these numbers truly drive your business.
— To find what truly matters, observe what your leadership team obsesses over, measure at the front lines, check overlooked measurables, think holistically, and be open to borrowing from competition.
— Test, Analyze, Adjust: use the EOS 90-day rhythm to evaluate how effective your metrics are for predicting growth. If they’re ineffective–switch gears.
— Contact us to speak with one of our consultants who can help you identify the right metrics to move the needle in your business.