7 Biggest Business Measuring Mistakes No One Talks AboutA Scorecard is a simple management tool we use to track progress. We also use Scorecards to hold people accountable to promised results. With Scorecards, we discover patterns and we read the pulse of a business or a team. Scorecards reflect the belief that "what doesn't get measured doesn't get done."Reality is that most businesses do not use a Scorecard. Those who have one make lots of mistakes when defining and using it. These mistakes prevent the Leadership Team from getting the needed benefits.Clepsydra Systems, Inc. CSI_7efdc2d6-d3da-11e4-b8c3-823b6a7ac850Sergiu Simmel_7efdc4ac-d3da-11e4-b8c3-823b6a7ac850To enable Leadership Teams to get the needed benefits from Scorecards._7efdc560-d3da-11e4-b8c3-823b6a7ac850MeasurablesStart with 3-5 Measurables._7efdc600-d3da-11e4-b8c3-823b6a7ac8501Problem 1: Too Many Measurables. We only have a limited ability to absorb information. Tracking too many numbers ends up creating less knowledge, rather than more. The principle is always 'Less is More.' Here is the fix. Start with 3-5 Measurables. Over several weeks, see whether they give you enough of a "pulse" for the business. Only add new ones if needed, but do not exceed 15 Measurables. _7efdc6a0-d3da-11e4-b8c3-823b6a7ac850PredictionDefine Measurables that reflect past activities with clear consequences on future results._7efdc74a-d3da-11e4-b8c3-823b6a7ac8502Problem 2: Measurables Not Predictive. Measurables that reflect results are often the first Measurables that come to mind. Examples are: Closed Sales or # New Clients or Weekly Expenses . This is because we're used to P&L-type numbers. Problem is: they only give us a rear view mirror image of the business. Nothing we can do can affect them, since they are all in the past. We need numbers that allow us to predict future results, and act on them. Here is the fix: Define Measurables that reflect past activities with clear consequences on future results. For example, the number of past sales meetings always impacts closed sales. We know this based on our experience with closing ratio. Thus, track how many sales meetings happened during the week._7efdc7e0-d3da-11e4-b8c3-823b6a7ac850Reporting & ReviewCreate a weekly context in which the Measurables are reported and reviewed._7efdc880-d3da-11e4-b8c3-823b6a7ac8503Problem 3: Not Tracked Weekly. Have you seen businesses implementing great tools with much effort and then ignore them? Or use them only occasionally or irregularly? A Scorecard is useful only when it regularly tells us how the business is doing. It is useful only when it gives us an immediate opportunity to act when things get off track. Looking at the numbers once a quarter or month is way too seldom. This is especially true for entrepreneurial businesses that need to move fast. Here is the fix: Create a weekly context in which the Measurables are reported and reviewed. A weekly cycle gives you enough time to act to prevent derailments. Yet, the period is not too long to be too late for proactive action._7efdc920-d3da-11e4-b8c3-823b6a7ac850AccountabilityAssign one member of the Leadership Team for each Measurable._7efdc9ca-d3da-11e4-b8c3-823b6a7ac8504Problem 4: No One Accountable. Tracking a Measurable means nothing if no one is responsible for that number. When the number is off track, someone must be held accountable for it. Then, the same must be focusing on correcting it. Here is the fix: Assign a member of the Leadership Team for each Measurable in your Scorecard... Problem 5: Too Many Accountable. Have you ever seen a manager assigning two people responsible for the same number? ("Yeah, they will cooperate to ensure that it reaches its weekly target.") As soon as the number gets off track, A will point to B, who will now point to A. The result: no one is accountable. Accountability is a singular assignment! Here is the fix: Always make one and only one person accountable for each Measurable in your Scorecard._7efdca92-d3da-11e4-b8c3-823b6a7ac850ComplexityMake each measurable one and only one single number._7efdcb5a-d3da-11e4-b8c3-823b6a7ac8505Problem 6: Measurables Too Complex. Some managers find it hard to keep only a few Measurables. So they get clever by defining a complex one. ("Yeah, this is just those 8 numbers that we need to see together!"). Simplicity is keeping things simple, not hiding complexity. Here is the fix: each Scorecard measurable must be one and only one single number. Period. Once again: "Less Is More!"_7efdcc2c-d3da-11e4-b8c3-823b6a7ac850TargetsEstablish a weekly target for each Measurable._7efdccc2-d3da-11e4-b8c3-823b6a7ac8506Problem 7: No Weekly Goals. Reporting numbers on a weekly basis is great, but how do we know whether we're doing well or not? Have you ever seen managers leaving that decision to their whim? Or, worst, just ignoring it in the hope "they will know when they see it?" Have you done it? That is, avoiding having a hard weekly goal to compare the reported number against? These tendencies only call for lack of accountability, and in the end poor performance. Here is the fix: always have a weekly target for each one of your Scorecard Measurables. If the number did not hit the target, hold the accountable person to task. Then solve whatever issues may have prevented hitting the target._7efdcd80-d3da-11e4-b8c3-823b6a7ac8502015-03-26https://www.linkedin.com/pulse/7-biggest-business-measuring-mistakes-one-talks-sergiu-simmelOwenAmburOwen.Ambur@verizon.net