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Create Clear, Objective Metrics

By November 20, 2018EOS

One of the 6 key components in the EOS model is the Data component.  The concept is simple – create clear objective metrics that indicate whether you are on track.

There are 2 fundamental pieces to this:

  1. Scorecards – A set of 5 to 15 numbers that give the team a pulse whether the company or a specific department is on track.
  2. Measurables – A metric (or set of metrics) at the job level that can tell each member of the organization if they are on track.

In my experience these both take time to evolve.

The first phase is defining and refining the scorecard.  This typically takes 3 to 6 months to get “dialed in” and then it becomes a powerful tool to proactively manage the organization.  From there departmental scorecards evolve.
The second phase is coming up with measurables at the job level.  Most everyone sees a way to apply this to the sales jobs. There are often lots common metrics like sales closed, dollars quoted, sales calls made, etc.  However, when it comes to the rest of the organization, there can be pushback.  I’ll often hear “We can’t measure that job”.  Then I will ask, “How do you know whether the person in that seat is really earning their pay?”.  There is a metric there somewhere.
The reality is that coming up with the measurables can be hard work and most of us don’t want to invest the time to do it.  However, when we do, there are many great benefits.  Here are some outlined in Gino Wickman’s book Traction:
  • Numbers cut through the murky subjective communication between manager and direct reports.
  • Numbers create accountability.
  • Accountable people appreciate numbers.
  • Numbers create clarity and commitment.
  • Numbers create competition.
  • Numbers produce results.
  • Numbers create teamwork.
If any of this resonates with you, contact me and I will show you how The Entrepreneurial Operating System can help you measure and improve your performance better and faster.