You NEED a Scorecard

The other day, a new client said to me, “I’m so tired of not knowing what’s going on in my business. I’ve got to do something about it.”

I asked, “Well, what do you mean by that?”

He replied, “I don’t know how much my salesperson is selling. I don’t know how many leads we’re getting or how many we’re closing. I don’t know what our gross profit is by division. I don’t even know how many new jobs my reconstruction managers are signing each month. There’s just so much I don’t know.”

I smiled and said, “I’ve got a simple solution for you: a scorecard.”

I’ve been using scorecards in my businesses and with clients for years, and while I think the term ‘game changer’ is overused, having a scorecard truly was a game changer for me and my teams.

At any point in the course of a year, a quarter, or a week, a scorecard lets you and your team know exactly where you are in terms of performance. Are you on track or off track? The scorecard highlights the two to five most important metrics that determine success in each role. And every single week, your team members know if they’re on track or off track.

If you’re not using a scorecard yet, I want to encourage you to start with a very small set of metrics—just a few for the business as a whole—and begin tracking them. Then, set up a regular meeting to review the scorecard so everyone knows where they stand.

Once you get comfortable, you can expand and build out metrics for each of your team members. Start small, and as you build consistency, add on.

Every week, you’ll see the clarity that a scorecard provides. You and your team will have a clear sense of whether you’re moving in the right direction or not. It’s almost impossible for it not to improve your overall company performance.

So, if you’ve been feeling overwhelmed or in the dark about what’s going on in your business, give this a shot. And if you need help setting up a scorecard or deciding what metrics to track, don’t hesitate to reach out. I’d be happy to help!