The Issue was Working Capital.
The context was Scorecarding (and a review of the prior 13 weeks’ results at a Quarterly Pulsing™ session).
After stepping through each of the measurables that were currently off track and adding them to the Issues List for that day, the Leadership Team was ready to move on.
“Is there anything else we should discuss about the Scorecard measurables?” I asked.
“No,” they responded, “we can move forward.”
“What about–” I objected, “the fact that working capital has shown a continuous downward trend over the quarter and is down by 50% since the last time we were together, yet it never gets put on the Issues List because the dollar value is presently above the goal?”
Strengthening the Data Component™ to 100% strong requires having a great Scorecard. Building a great EOS® Scorecard can be a challenging process; it often takes 3–5 months to feel truly “dialed in.” Of course, having the right measurable and the right goal are both critical. However, once in place and managed correctly, the Scorecard is the key to measuring results achieved and tracking progress toward critical company objectives. Measuring what matters via Scorecarding is what accelerates profitability. Once a Scorecard is in place, you do need to actively manage it, too! That’s where the rubber hits the road, the work gets done, and improvement and profits are driven.
That day, the Leadership Team did put the Working Capital value on the Issues list. They examined not only the reason it was in steady decline, but also whether the goal number was the right value to begin with.
If you aren’t feeling like your Scorecard is truly great, or your measurables aren’t giving you the true pulse of your business or driving significant organizational improvement, talk with your EOS Implementer® about what you might do differently.