Tabetha Sheaver Reveals How To Create A High Functioning Business Scorecard
By: Tabetha Sheaver
"Business owners know they should have some numbers or key performance indicators to make decisions. But just knowing the numbers and continuing to make decisions from feelings, emotions, and gut feel, is totally different than creating a highly functional scorecard," Sheaver said.
"It's like coaching a hockey team and realizing you need to score five goals to win. But you never look at the scoreboard and realize you have dozens of shots on goal but the score is only 1-0. So what behavior do you adapt at that point and what adjustments do you make? The right scorecard provides the proper metrics to help you make the right decisions."
Sheaver said a properly designed scorecard drives team behavior with measurements to achieve the desired outcome. It also helps ownership let go of the vine. "Owners know they will have the vital data at their fingertips to help prevent the company from going off the rails. A good scorecard also helps the CEO with accountability, designating who exactly is responsible for each specific objective, so it doesn't always fall on them."
According to Sheaver, building the right scoreboard begins in the planning process. "First think about your ownership style and get clear on the story that helps you make decisions and identifies problems."
"Then reduce those down to the 5 – 15 that give you a level of comfort," she adds. "Create a line for each and ensure there is a clear 'owner' as well as a weekly goal for each objective. Finally break down your goals into weekly measurement periods, not monthly which is much too late to take preventative action."
Sheaver emphasized the most important part of a great scorecard is reviewing it weekly and analyzing if the metric is being met or not. "If the weekly metric isn't reached you've got to drop it down to the issues list, determine the root cause, and adjust. This is where a highly detailed scorecard separates itself from just a sheet listing your annual goals. It becomes a vital tool to the success of your operation."
For more visit https://tabethasheaver.com.
About Tabetha Sheaver
The host of the Breaking Through Biz podcast, Sheaver is a long-time entrepreneur and business owner. In addition, she is an award-winning consultant and highly skilled professional in change management, as well as a Certified Project Management Professional (PMI), Certified Change Management Professional and Certified Mediator. For more information visit https://tabethasheaver.com
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