What Is An EOS Scorecard?
What Is An EOS Scorecard™?
This is a question that most, if not all, businesses self implementing the Entrepreneurial Operating System® ask themselves. Usually, “what is an EOS Scorecard” is coupled with, “why do we need it”. Many self implementers make the mistake of thinking they already have a scorecard, because they track what has happened in their business in the last week, month, or year. The problem is that tracking what has happened isn’t what a scorecard does. A scorecard tells us what is happening and gives a bit of insight into what will happen.
The Problem With “Look Back” Data
Data that tells you what has happened isn’t necessarily a bad thing. In fact, no company can really operate without that kind of data. The real problem (as an EOS Implementer would see it) is that “look back” data can’t show you what is happening in your business right this moment. If you don’t know what is happening now, you can’t know what will happen at the end of the week / month/ quarter.
“Look back” data is a reflective data. It is totally necessary to know how the company has done. An EOS Scorecard is predictive data, and it tells you how you will do. The best analogy is a scoreboard at a football game. A scoreboard (like the one above) contains both reflective and predictive data.
The scoreboard shows you the score: 21 – 14. That is the reflective data. But, any football fan could tell you that this game is far from over just by looking at the scoreboard. The home team has the ball on the 42 with 7 to go on the 2nd down. The visitors could easily force a turn over. With luck, they could have this game. That’s the power of predictive data.
The reflective data told us what happened, sure. But, the predictive data gave us the information we needed to make an educated guess about the future.
How To Build An EOS Scorecard That Helps You Predict
An EOS Scorecard is your business’ version of that predictive data. It tells you exactly what is happening in your organization at the moment and gives you the power to be proactive. Building an EOS Scorecard is no easy task, and no one gets it right on their first try. Really putting your finger on the pulse of your business is something that is hard to do without the perspective and guidance of an EOS Implementer. But, if you’re going it alone, follow these steps to get your first draft of an EOS Scorecard:
Step 1: Complete your Vision / Traction Organizer™.
Building a Scorecard with nothing to guide it will take the Traction right out of your business. If you don’t have a Vision / Traction Organizer (V/TO), you can learn how to get started here.
Step 2: Identify 5-15 Scorecard Categories.
This is the hardest part. Your leadership team needs to identify the numbers that, if they know, they will have a good idea of how the business is doing this week. Imagine you went on vacation and asked the team to send you 5-15 numbers as a way to update you on how things were going. What numbers would they send you? These categories are unique to each business, and so there is no way to tell you exactly what they are. They usually include things like accounts receivable, cash balance, client/customer satisfaction, or progress on client acquisition.
Step 3: Put a weekly goal on each category.
Create a goal for each category that is specific, measurable, and realistic. If your category is “client interviews”, how many interviews do you need to have each week to keep your revenue where you want it?
Step 4: Assign each goal to a team member.
Each goal should fall directly under the responsibility of one person. If more than one person is responsible, nobody is.
Step 5: Assign a Scorecard keeper.
Give one person the additional job of keeping track of these numbers. Each week, they need to assemble and record all of the relevant numbers to create your scorecard.
Step 6: Use the Scorecard each week.
A Scorecard hiding in someone’s desk isn’t any good to your business. Bring the Scorecard to every weekly meeting. Talk about it. When people hit their numbers, congratulate them. When they don’t, figure out why.
Step 7: Review the Scorecard.
Creating a Scorecard is a marathon, not a sprint. Your leadership team will need to regularly review it until you’ve got the Scorecard that works. The first few weeks, your Scorecard will likely have a lot of changes. That’s fine, but the longer you have it, the more stable it should become. Changing your Scorecard every week for years accomplishes nothing.
You can download your copy of the EOS Scorecard here.
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Whittle & Partners is a consulting group that provides EOS™ Implementation in the United States and beyond. We offer in-person and online solutions to fit your business and schedule.Visit our about us page to learn how and why we love bringing Dallas Traction.
Jeff Whittle is a Certified Dallas EOS Implementer.