Every EOS® run business has uncovered the power of the EOS ScorecardTM. This seemingly simple tool helps a business get on track and stay on track to meet their quarterly and annual goals.
But when it comes to filling out their Scorecard, many organizations learn that the hardest part is identifying the right metrics.
It’s not just about having data but knowing which data points genuinely indicate your business’s health and trajectory. How do you sort through all of the options to determine what numbers your organization needs to focus on?
This article is here to help. While the best measurables vary depending on your industry and specific business model, there are common categories that apply to most businesses. Getting a handle on these can significantly improve your strategic planning and execution.
What Kind of EOS® Measurables Should I Track?
The EOS® Scorecard focuses on actionable indicators. Every number should not just indicate past performance, but help point the way toward future success. Your metrics must be leading indicators that measure weekly activities. By focusing on these measurables you can ensure your business remains agile and on course.
Here’s a breakdown of the types of measurables that can provide the most insight and drive towards your goals:
1. Financial Measurables:
Financial health is the pulse of your business. Tracking metrics like profit margin, client acquisition rates, and product sales provides a clear snapshot of your financial status.
These numbers are not just indicators; they’re the foundation for strategic decision-making. When these metrics drift off course, identifying and addressing the root cause becomes much more manageable, allowing for timely corrections and strategic adjustments.
2. Performance Measurables:
Your team’s effectiveness directly influences your business’s overall performance. By monitoring metrics such as sales call numbers, inbound lead generation, and project completion rates, you can gauge your team’s efficiency and pinpoint areas needing improvement.
Performance measurables offer insights into your operational effectiveness, highlighting opportunities to enhance productivity and streamline processes.
3. Core Process Measurables:
Focusing on core processes like hiring, sales, marketing, and customer satisfaction ensures that the fundamental aspects of your business are performing optimally.
These measurables act as a litmus test for your operational health, offering early warning signs when adjustments are needed. By keeping a close eye on these key areas, you can ensure that your business’s core functions are always aligned with your strategic objectives.
Key Tips and Reminders
Here are a few tips to help you effectively implement and maintain an EOS® Scorecard.
- Start Simple: Begin with a manageable number of measurables (3-7 for department scorecards, 5-15 for leadership team scorecards). It’s better to accurately track a few key metrics than to get overwhelmed by too many.
- Regular Reviews: As part of your weekly L10 Meeting, you’ll review your Scorecard regularly. This keeps goals top of mind and allows for timely adjustments.
- Assign Ownership: Ensure every measurable has one clear owner. This fosters accountability and clarity within your team.
- Actionable Metrics: Focus on metrics that can influence future outcomes. If a metric doesn’t inform action, reconsider its value on your Scorecard.
- Adjust as Needed: Be prepared to update your Scorecard as your business evolves. What’s relevant today may not be tomorrow. Quarterly meetings are a great opportunity to review your Scorecard and reconsider metrics.
- Communicate Openly: Share Scorecard results with your team at your weekly Level-10 MeetingsTM. Where metrics are off track, discuss issues following the IDS framework to promote trust and collective responsibility.
Choose the Numbers That Drive Your Business Forward
By choosing the right numbers for your Scorecard, you will keep your teams aligned, informed, and poised for success.
Allow the categories in this article to guide your brainstorming. And if you’re unsure where to land, consider partnering with an EOS Implementer® for the guidance and expertise you need. Together, you can identify the most impactful measurables to get and keep a grip on your business.
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