There’s only one way to judge: by results. It’s often harsh, but always fair.
Imagine if you showed up at a football game and there was no scoreboard. How would you know who’s winning? How would you know how much time is left? Now, what if we removed the field markers—could you tell how far it is to the goal line? And let’s turn off the clock while we’re at it; would you know what quarter it is or how much time was left?
Without these tools, football would be chaos, right? So why do we treat business any differently?
Your business isn’t a game, but just like football, it needs a scoreboard. Do you have one? Do you measure your key metrics every month? Do you know how close—or far—you are from hitting your goals each month? Is everyone in your business aiming at targets tied to the company’s cash flow and profit?
Without a scoreboard, how do you judge success or failure? The truth is, without clear metrics, you’re guessing, and let’s face it—more often than not, those guesses are wrong.
With a scoreboard, we know where we stand. Sometimes, it’s brutal. But it’s fair. Why? Because we knew the rules of the game upfront. We knew what we needed to accomplish and by when. If we miss the mark, it’s time to evaluate, coach, and adjust.
If people on your team are consistently missing their targets, you have to ask: Are the goals unreasonable, or do we have the wrong people in the wrong seats? Without a good scoreboard and solid metrics, you don’t know where you stand. You’re flying blind, and some of your people can hide their lack of performance.
So, what’s your scoreboard?
Start with the Basics: Identify Your Key Metrics
Every business needs to track key performance indicators (KPIs) that align with its goals. These might include monthly revenue, profit margins, cash flow, lead flow, close rates, customer acquisition costs, and employee productivity. Identify the metrics that matter most to your business and start tracking them consistently.
Set Clear, Achievable Targets
Once you’ve identified your KPIs, set clear, realistic targets for each one. These targets should be specific, measurable, and time-bound. For example, if your goal is to increase monthly revenue by 10%, break it down into weekly goals. This approach makes it easier to adjust your strategies in real time rather than waiting until the end of the month or quarter to see if you hit your target.
Create a Visual Dashboard
Like a scoreboard in a football game, your business needs a visual dashboard that’s easy to read and understand at a glance. This could be a spreadsheet, an app, or a dedicated business dashboard tool. The key is to keep it simple and focused on the most important metrics. Your dashboard should tell you—instantly—whether you’re on track to meet your goals or if adjustments are needed.
Measure Profitability and Cash flow, Not Just Revenue
Revenue is important, but it doesn’t tell the whole story. You need to measure profitability and cash flow — what’s left after all expenses are paid. Track your gross profit margins, net profit margins, and operating expenses regularly. These metrics give you a clear picture of the financial health of your business and help you make informed decisions about where to cut costs or invest more.
Actuals to Targets Regularly
It’s not enough to set targets—you need to compare your actual performance against these targets regularly. Weekly or monthly reviews allow you to spot trends, identify issues, and make necessary adjustments before small problems become big ones. If your actual profit margins are lower than expected, dig into the numbers to find out why. Are your costs higher than anticipated? Are sales lower? Use this information to tweak your strategy and get back on track.
Involve Your Team
Everyone in your business should know the targets and how their work contributes to achieving them. Involve your team in the process of setting goals and tracking progress. When everyone understands the impact of their actions on the company’s bottom line, they’re more likely to take ownership of their roles and work towards the common goal.
Celebrate Wins, Analyze Losses
When you hit your targets, celebrate the success with your team. Recognizing achievements boosts morale and keeps everyone motivated. But don’t just celebrate—analyze what worked and why. Similarly, when you fall short, take a close look at what went wrong. Did you set unrealistic targets? Was there a breakdown in execution? Use these insights to improve and adjust your strategy moving forward.
The Bottom Line?
In business, as in football, results are the ultimate judge. A scoreboard keeps you honest, clear, and focused. Without one, you’re just hoping for the best, and hope is a terrible strategy. So, how are you keeping score?