The EOS® Data Component™: Know Your Numbers
Know Your Numbers
This is Part 3 of a series on Unlocking Greatness in your business. Previously, I covered what makes a great Vision & how to surround yourself with Great People for your business. This week I cover the 3rd key component, Data.
In today’s digital world, it is possible to dissect your business any number of ways. One of the biggest challenge’s clients face when I start working with them is figuring out which numbers they should be looking at to begin getting a grip on their business. Ultimately, they want to be in a position where everyone in their team not only has clearly defined accountabilities. They understand how they are measured and what they can do about it.
This process starts with the Leadership team working through the following 5 steps:
a) Identify and track 5 to 15 weekly numbers that give you an absolute pulse on your business. By looking at 13 weeks of history on each of those measurables at a glance, you’ll start to see patterns and trends develop that tell you whether a one-time event – like winning or losing a big piece of business – is really something worth reacting to.
b) Leading indicator that you can do something about right now. What activities do you need to do this week to get the longer-term outcomes you want?
c) Only one person in the company is accountable for each number. If more than one person is accountable, then no one is.
d) There is an established goal for each measurable. Be clear on what the performance level the business needs to achieve. This can be a stumbling block for a lot of companies as the gap between where they are and where they want to be may seem too big. Break it down into smaller chunks and celebrate the small wins. Once achieved, raise the bar.
e) Understood path of action if the goal is not met. This generally indicates an underlying issue that needs to be addressed. This leads into the 4th key – Issues that I will cover in a future post. For now, create a process that deals with not hitting the target rather than just shrugging your shoulders and letting it slide.
You may already have something in place that resembles the above. If so, congratulations. You are already on the way to unlocking Greatness in your business. If not, delve into your business and compile your first attempt at a Company scorecard.
Either way, for you to truly get the results you are looking for there are seven truths, and if you don’t buy into and believe in them, you will always have challenges managing a Scorecard, and the associated measurables. Said another way, the leaders, clients, and entrepreneurs who are masterful at managing numbers subscribe to seven basic truths.
The seven truths are as follows. You must believe that:
Truth #1: What gets measured gets done.
You must be convinced that just the mere act of reviewing numbers every week increases awareness, peer pressure, and results—that reporting numbers drives action. As one client puts it, “just having a Scorecard is most of the value; it’s just a matter of doing it.”
Truth #2: Managing metrics saves time.
You must believe that it is a time-management tool. That the time taken to first create your Scorecard and the subsequent 10 to 60 minutes you spend per week managing it is worth it and saves you time in reduced train wrecks, miscommunications, and leaders interrogating others to get a pulse.
Truth #3: A Scorecard gives you a pulse and the ability to predict.
You must know that a pure Scorecard with 13 weeks at a glance paints a vivid picture of your current reality and foretells your financial future.
Truth #4: You must inspect what you expect.
As Ronald Reagan said, “Trust but verify.”
Truth #5: You can have accountability in a culture that is high trust and healthy.
You must embrace the idea that “inspecting” and accountability doesn’t mean “I don’t trust you.” Frankly, accountability is the reason most healthy cultures are healthy.
Truth #6: A Scorecard requires hard work, discipline, and consistency tomanage, but it’s worth it.
As someone else said, “No pain, no gain.” Belief in a Scorecard and the tenacity it requires enables it to evolve over time into an incredibly valuable management tool. Setting it up is the easy part. Keeping it alive and relevant requires constant attention.
Truth #7: One person must own it.
That one person must make sure it’s prepared by someone every week and that all numbers are filled in each week and 100% accurate. If there is ever one thing wrong with the scorecard, everyone looks into that person’s eyes, usually the integrator.
If you don’t believe at your core in the above seven truths, your Scorecard will never fully work for you.
I’d love to hear your thoughts on how you have found ways to identify and use the numbers that give you a feel for the pulse of your business in the comments section below.
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