The Power of a Scorecard?

This article was written by Charlie Rhea, EOS Implementer?. All ideas were adapted from EOS Worldwide, from another EOS Implementer? – Wayne Kurzen , and a Fractional Integrator – Rick Duncan .

Topic: Measuring the right info to make better decisions!

Time: 10min

Takeaway: What gets measured gets done!

Tool: The EOS Worldwide tool: The Scorecard

Tip: Clarify and simplify your weekly activities that will yield the results you want!

Try: Create your own Scorecard and begin using it for the next 3 weeks!

Would you rather watch than read? Here you go!

What is a Scorecard?

What is this? A Scorecard is a way to measure activity in order to predict future results. It's a predictive tool and a tracking tool! How do you use it? You start with predicting key measurables and then tracking those measurables. A measurable is a specific activity that helps predict a future outcome. Typically, they are set up as a weekly activity. You would do this for 13 weeks which then creates a 13-week lookback.? For example: 5 calls a day for a normal workweek will produce at least 3 new warm leads each week. 3 warm leads a week will produce 1 new client each week.

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Why is this topic important?

This topic matters for many reasons:

Overview:

1) What gets measured gets done!

2) Accurate and consistent predicting is powerful and effective because it's proactive!

3) Accurate and consistent tracking improves self-accountability!

Here are 8 Powerful Reasons Why Numbers Are Critical for a Strong Data Component

1. Numbers Create Clear Communication

• Numbers eliminate vagueness.
• Instead of asking, “How was your week?” and getting a vague response, numbers provide clarity.
• Asking, “Did you hit your target of 10 calls?” ensures precise, fact-based conversations.

2. Numbers Create Stronger Accountability

• Numbers set clear expectations. Employees in the right seats want accountability.
• "When you set a number, everyone knows what the expectation is. Accountability begins with clear expectations, and nothing is clearer than a number” (Wickman, 2012, p. 124).

3. Numbers Reveal Top Performers

• Strong accountability pushes great employees to rise and exposes underperformers.
• Numbers provide a weekly performance test—no one can hide behind opinions or excuses.

4. Numbers Create Clarity and Commitment

• When employees understand their exact targets, they commit to achieving them.
• "When an employee is clear on his or her number and agrees that he or she can achieve it, you have stronger commitment” (Wickman, 2012, p. 124).

5. Numbers Drive Healthy Competition

• Numbers motivate.
• At Bethlehem Steel, Charles Schwab wrote each shift’s production number on the floor, sparking a competition that turned an underperforming plant into a top producer (Carnegie, 1936).

6. Numbers Produce Results

• Clear expectations drive measurable success.
• "If the customer service department’s expectation is zero unresolved customer issues, by hitting this number, you will achieve the ultimate result of customer retention and satisfaction” (Wickman, 2012, p. 125).

7. Numbers Strengthen Teamwork

• Teams rally around numbers. When everyone knows the goal, they work together to stay on track.
• Numbers remove subjectivity and create a unified focus.

8. Numbers Solve Problems Faster

• When a number is off track, you can take immediate action.
• "When an activity-based number is off track, you can attack it and solve the problem proactively, unlike with an end-result-based number that shows up after it’s too late to change it” (Wickman, 2012, p. 125).

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How do you make a Scorecard?

Here are 7 strategies for making an effective Scorecard:

1) Measure only what matters!

2) Keep it simple!

3) Start slow, fail forward, and build momentum by being consistent!

4) Use your Core Processes to help guide you!

• The EOS? approach to documenting processes is all about being strategic and simple. There are three basic steps:
• First - Identify

*Start with brainstorming to identify the major Core Processes of your organization.

• Second - Clarify and Simplify

*Clarify what each process is, overall, how it works, and what the result is of following it.

*Now, use the 20/80 approach to strategically think about the top 20% of steps in each process that will get you 80% of the results!

*Clarify and Simplify each step.

*As you do this, you will find that you are thinking in terms of being strategic and simple.

• Third – Document

*Put it in writing!

*What is the result of putting in the hard work of documenting your Core Processes? You can now use those Core Processes as foundational starting points for identifying predictive activities (measurables) to possibly put in your Scorecard.

5) If you are stuck, try using the "Getting What You Want" tool!

• Start with drawing 5 boxes spaced out on a blank piece of paper.
• Draw an arrow in between each box.
• Start by taking one of two paths:
• Path Number One -> Begin with the end in mind:
• Ask yourself "What outcome do I really want?"
• Write that answer in the far-right box.
• Path Number Two -> Start at the beginning:
• Ask yourself "What activity do I want to measure?"
• Write that answer in the far-left box.

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6) Give yourself grace but stay persistent!

• The Scorecard is one of the most difficult tools to get right! Be patient with yourself and keep reviewing and refining it!

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7) Focus on Leading Indicators not Lagging!

• For a measurable to be the most effective, it needs to be forward not backward focused. There are two terms we use at EOS to describe the difference:
• Leading vs Lagging.
• Leading indicators are predictive and proactive in nature. Predictive in the sense that they will predict future outcomes based on current activities.
• Proactive in the sense that you are thinking and planning ahead, trying to come up with strategic and simple behaviors that will generate specific results.
• Lagging indicators are reactive and reflective in nature. Reactive in the sense that you are reacting to what the needs are of your company instead of thinking ahead. Sometimes this is needed. But it should not be the main area of focus when crafting the Scorecard measurables.
• Reflective in that they reflect what has happened. It is based on results from the past.
• To summarize, focus on leading indicators not lagging to create a more effective Scorecard!

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Here is a quick overview:

3 Major Types of Data you can measure -> According to Rick Duncan, a Fractional Integrator, there are 3 major types of data that you can put into a Scorecard:

1) Past Data

2) Present Data

3) Future Data

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Let's break down each one:

1) Past Data

*This is information that has already happened. Typically, things like financial results.

?2) Present Data

*This is information that is currently happening. An example might be current progress on a project.

?3) Future Data

*This is information that helps you predict what you think will happen. An example may be new business leads.

Bottomline: what is the main goal for a Scorecard?

The goal for an excellent Scorecard is NOT to track past data (which is the easiest to track), but to track future data (which is predictive). Predictive behavior is effective to analyze because it gives direction as to "what has to change in order for the company to make the business plan" (Duncan)

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It comes down to this simple idea: activity leads to outcomes.

• Effective activity leads to effective outcomes.
• You can predict outcomes based on the activity you choose to perform.
• In EOS terminology, weekly activities are called measurables.
• Therefore, measurables should be predictive.
• What if measurables are consistently off track?
• This is very common for new Scorecards so do not be worried!
• This is a great opportunity to IDS (identify, discuss, solve) as a Leadership Team! Here are few things to consider:

1) What is the measurable? Clearly define it in simple terms.

2) What is this measurable trying to predict?

3) Why was it chosen?

4) What is the problem with this measurable?

5) What Core Process does this measurable relate to?

*Many times, the measurable is consistently off track because it "needs to be broken down to understand the processes that contribute to it" (Duncan p. 2). Two great questions to ask are (Duncan, p. 2):

• What are we trying to measure?
• What process would we need to achieve that measurable?

6) Is this activity accurately reflected on The Accountability Chart??

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Once you are clear on the measurable, clear on the desired outcome, and clear on the process that needs to be followed to get that outcome, consider looking at The Accountability Chart to check if you have the right person in the right seat.

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Summary

Analyze the measurable, double check the Process it relates to, and align it with the appropriate Accountability Chart role. This will most likely solve that issue. If your team performs these certain activities (measurables), the company should get these certain results (predictive outcome). When you clarify what you want to accomplish and then think about the activity you need to do in order to achieve those results, it helps give your days and weeks greater purpose!

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Personal Experience:

As I have been developing my own Scorecard one of the results has been sharper focus, increased effectiveness, and feelings of confidence as I build momentum and create easy small wins!

My focus: win the day to win the week to win the quarter!

To win the day I must win the morning and to win the morning I must win the evening!

To me it all comes back to setting up great routines and striving to live your ideal week and ideal day.

The Scorecard will increase how you make decisions. It is based on meaningful activity that will get you where you want to go.

Challenge:

1. Take a "first cut" at building your own Scorecard for your specific role. Include some personal and professional measurables. 5-15 is the rule of thumb.
2. Start using it on a daily basis! Let the Scorecard activity guide your day!
3. Once a week, use a meeting with yourself to answer "What's working?" and "What's not working?" as you review and refine your Scorecard!
4. Do this for 3 weeks in a row and experience the positive momentum that you will create as you do it!

Final Thought:

A well-designed scorecard ensures you manage reality—not opinions. Tracking the right numbers weekly, assigning accountability, and focusing on leading indicators allows you to make better decisions, predict future outcomes, and drive long-term business success.

References:

1. Wickman, G. (2012). Traction: Get a grip on your business. BenBella Books.

2. Carnegie, D. (1936). How to win friends and influence people. Simon and Schuster.