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Author: Blake Babcock
What does success look like for your company? What does success look like for each department? How does the success of individuals performance contribute to the success of their department and ultimate success of the company?
One way SSE has measured the success of individuals, departments and ultimately the company is via our EOS scorecard. This blog continues to give you a peek into our EOS journey and today, specifically, how we are measuring success.
The EOS scorecard, perhaps one of my favorite tools in the EOS toolkit. It can also be one of the most daunting tools until you become very comfortable with its purpose.
The scorecard is held at two different levels. There is a company scorecard held at the leadership level and department scorecards, you guessed it, held at the department level. The scorecard is where you determine the most important measurables which are reported on a weekly basis. These measurables should clearly tell you whether you had a good week or not (as a company or department).
The company scorecard should allow the CEO (Visionary in EOS terms) to be sitting quietly on a beach with no communication to anyone in the company, have a look at the scorecard, and be able to tell whether things are going well…or not. The same applies for the department leaders looking at their department scorecard.
At the company level we are measuring Cash Position, A/R, Company Wide Margin, Net Starts & Ends (temp), Direct Hire Placements, Job Orders Written, New Clients Added, New Client Job Orders, Total Prospect Appointments and more – but that gives you a quick peek at the most important measurables from a company level.
The scorecard gives you the weekly pulse of the business. Was the measurable achieved or not achieved? We also look at the 13-week rolling average of each measurable. Is the 13-week rolling average above or below target?
If 3 consecutive weeks occur where a measurable is not hit, the measurable is brought to the IDS portion of EOS – Identify, Discuss, Solve. What is causing this measurable to not be hit? Is there a process not being followed? Is there an obstacle that needs removed? What can we do to ensure this measurable improves? Action items are set to correct the issue and bring the measurable back to target (and above).
The scorecard gives you the weekly pulse of the business. Was the measurable achieved or not achieved? We also look at the 13-week rolling average of each measurable. Is the 13-week rolling average above or below target?
If 3 consecutive weeks occur where a measurable is not hit, the measurable is brought to the IDS portion of EOS – Identify, Discuss, Solve. What is causing this measurable to not be hit? Is there a process not being followed? Is there an obstacle that needs removed? What can we do to ensure this measurable improves? Action items are set to correct the issue and bring the measurable back to target (and above).
At our core as humans…no one really likes accountability. When it’s first rolled out, the perception is often “oh great, someone is looking over my shoulder and judging me and the entire company can see it”. It’s a natural feeling to have especially if your performance has never been this visible to the entire organization.
The scorecard isn’t meant to bring a bright shining light over your head and your head alone. It’s meant to provide clarity, transparency, and accountability to each individual and department to measure the success of the business and most importantly provide an opportunity to SOLVE and issues (roadblocks) we might encounter…TOGETHER.
The reality is that as individuals and a company there are good weeks and there are bad weeks. When the scorecard is used properly it provides an opportunity for support and growth for everyone.
Like anything new to a business, the essential part is maintaining a high level of communication and transparency on why this is important, what role individuals play in the success of the department/business and what role they play in solving key issues to promote future success.