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Business Scorecards

by John Gross

Author’s Note: I am honored to take over this column from the late Jim Canada. Jim was a class act and a giver. He was one of our area’s super-connectors—always willing to meet people and help them pursue their goals. He will be missed.

While this column is about tools to help you run a better business, we also need to know if we are winning or losing before flipping switches and pulling levers. A basic scorecard is one way to tell you how your business is performing.

A scorecard’s format is straightforward:
• What’s the measure?
• Who’s the owner?
• What’s the weekly goal?
• 13 weeks of history to see emerging trends.

Populate your scorecard by selecting the 5-15 leading measures that predict results. Choose measurements that tell you if you had a good or bad week. Avoid selecting numbers that mean nothing to you, are hard to calculate, or can be rationalized as either good or bad.

Next, set weekly goals that support achieving your monthly, quarterly and yearly numbers. If you don’t know what the weekly goal should be, guess. (In 4-6 weeks, you will know the goal.)

The process for using a scorecard is simple:
1. Update weekly
2. Review the numbers
3. Take action

A scorecard doesn’t tell you what to do—it tells you that you need to act. You still need to make decisions.

Entrepreneurial Operating System (EOS) experience shows that it takes one-to-three months to ‘fall in love’ with your scorecard, so just get started. Begin with a basic format, make data-driven decisions, and adapt as you learn.

John Gross is an EOS Implementer who helps businesses achieve Vision, Traction, and Healthy. You can contact John at John@ DrivingChangeInc.com or call 636.667.0579.

Submitted 1 years 172 days ago
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Categories: categoryEntrepreneur's Toolbox
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