If you’re self-implementing the Entrepreneurial Operating System® (EOS® for short), one of the biggest challenges you face is building a Scorecard™. Those few critical numbers that tell you how your business is doing haunt self-implementers from day one. Why? One of the big reasons is that these teams don’t have any EOS Scorecard examples to work from. And, when you combine that with the lack of a Certified EOS Implementer to guide the process, you get trouble.
I know plenty of teams that self-implement EOS. And, more often than not, they come to me for a bit of guidance every now and then. I’m always happy to help, I say, and we get to it. When they show me their Scorecards, it strikes me how they always have the same problems. Doesn’t matter the industry or the company, their Scorecard always suffers from:
- a lack of predictive data (focused on PNL),
- a focus on outputs, not inputs,
- too many numbers,
- a lack of connection from the numbers to desired outcomes, and
- way too many weeks (in L10 Meetings™) that the Scorecard numbers didn’t get reached.
So, as I’m feeling very generous today, I want to share with you 3 EOS Scorecard examples that can get yours on track. And, when you think you’ve got an understanding, you can use the template at the bottom to start editing your Scorecard.
EOS Scorecard Example 1: Big, Complicated Manufacturers
I’m starting here for the opposite reason that you probably suspect. See, the big, complicated manufacturer should actually have the simplest Scorecard. The more complicated your business, the more important it is to narrow your focus and simplify reporting.
I work with several very large manufacturers, builders, and industrial companies. When we built the Scorecards, each of them thought that theirs needed to be as big and complex as their company. But, as time went by we were able to simplify those until we finally got Scorecards that actually functioned as intended.
This example isn’t from one of those specific companies. But, it’s representative of each of those companies.
In this first example you can see how the team started predicting with their data.
- Sales Calls -> once the team knew what percent of sales calls landed a new customer, the number of sales calls they needed to keep up growth was easy to calculate
- Accidents -> this team valued a safe, dependable workplace. That meant zero accidents. This predicts both customer and employee happiness.
- Defects -> the team knew some defective products would go out the door, but minimizing them ensured repeat customers
- Trucks on Time -> shipping cost is immense for manufacturing, and logistics has to be well oiled. Trucks on time helped the team predict their overhead, shipping times, and even worker happiness
- Tonnage -> the amount of raw materials used told the team how much they were producing in a single, easily watched number
- Trade Shows -> a lot of smaller customers buy at trade shows, so the team made sure they stayed visible around the world to predict direct to consumer sales
EOS Scorecard Example 2: Small, Agile Tech
Second we have the small, agile tech company. They have a great idea and big dreams, but right now it’s all in the future. Their Scorecard is the cornerstone of their ability to actually achieve those dreams. Unlike the big company, when this small tech company misses a number, it can be crippling.
That’s why, when I work with companies like this, those that live and die by constant growth, I force them to be brutally honest with themselves. I ask them what the absolutely-must-happen-or-the-company-doesn’t-grow-numbers are. And that’s all that goes on the Scorecard.
When you are aimed at growth and survival in a fast-paced industry, you don’t miss numbers. This EOS Scorecard example reflects how these kinds of companies need to be ambitious, but realistic in their predictive data.
Example 3: Growing, Service Minded Restaurant
Lastly we have a service industry EOS Scorecard example. I chose this for two reasons. First, I think restaurants and other service oriented businesses tend to struggle with the Scorecard. It’s just far too easy to go with the numbers you’ve always monitored and not think forward. Second, the service industry is a great example of a business that can experience strong, sustained growth and expansion over a reasonable time line.
As you can see in this Scorecard, the restaurant and service industry can’t just focused on the customer facing aspect of their business. That’s what many of them try to do. They want to measure customer satisfaction, table turnover, coupons used, that kind of thing. Those are important, sure. They help you track a lot. But, there’s more to running a business than pleasing customers.
The folks at tasty burger needed to predict customer satisfaction, how many customers would come in next week, and how their growth goals were going. That’s a lot for 6 numbers, but not too much.
- Tip percent -> nothing predicts repeat business like tip percent, which tells you exactly how happy the customer was
- Groupons bought -> this helped the team predict how many people would visit during a time period (ordering food is a nightmare for restaurants) and had the added benefit of tracking their marketing campaign
- Product Tests -> this team is expansion-minded, which means testing out new ideas in their different stores to see what deserves a place on the menu
- Promo Calls -> the team was able to predict revenue often based on what promotions they ran with outside vendors, which meant tracking their calls was a big revenue predictor
- 1st Timers -> again, as a growth minded team, knowing how many people visited the restaurant for the first time let them predict when and where they could open up their next location
- Yelp Reviews -> this number is one that every restaurant I’ve worked with tracks, despite my disagreeing with it. But, they do it, so it’s on the example. I say it’s an output, not an input. But, they always argue that it is a predictor of future business as well.
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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.
Meet the Founder
Jeff Whittle founded and launched Whittle & Partners in 2011. Before that, Jeff practiced law in Dallas for 15 years and has an additional 20 years of executive business experience. He has run businesses ranging from startups to 300-employee operations.