How To Actually Set Up Scorecards That Get Results

Greetings Operators!

I’ve had a lot of operaters reach out and ask about how I “do scorecards”.

My scorecards drive daily and weekly execution, and are a vital aspect to building a business. Below, I dive into how I view them, build them, and use them.

Copy it all and use it asap to start driving aligned execution in your small business.

MAIN ISSUE
The Proper Use (and Power) of Scorecards

Scorecards aren't what you think they are. Most leaders view them as merely tracking tools—a way to monitor what others are doing. But that's a fundamental misunderstanding that's costing you problems in accountability, growth, culture, and performance.

The real power of scorecards lies with the creator, not the reader. And if you're only using them to check on others, you're missing 80% of their value.

The Scorecard Mindset Shift

Andy Grove famously said that the real power in reports is in writing them, not reading them. The same applies to scorecards.

When you write down a number daily, you're forced to think about it—sometimes multiple times throughout your day. It burrows into your decision-making process. You start filtering activities, ideas, and potential improvements through the lens of: "Will this help or hurt that number I need to track?"

This is why personal scorecards are so damn effective in driving performance—they focus your mind on the few things that actually move the needle in your business.

What Recording Does to Your Brain

When you physically record metrics (whether digital or analog), several powerful things happen:

• You become hyper-aware of activities that influence those numbers

• Your brain automatically starts searching for patterns in the data

• You develop an intuitive understanding of cause and effect

• Decision-making becomes faster and more confident

Compare this to someone who merely glances at reports others create. They're observers—not participants in the process.

Beyond Tracking: The Four Hidden Powers

The power of scorecards goes far beyond simple tracking—they're actually performance engines disguised as spreadsheets. Here's what they really do:

1. They Reveal Hidden Truths

Daily business obscures progress. Like tracking your weight loss journey, without consistent measurement, you can't really tell if you're making progress or fooling yourself.

Hard numbers cut through the noise and show whether what you're doing is working—giving you early signals, building momentum when things are working, or revealing when your activities aren't delivering expected outcomes.

2. They Connect Everyone to Strategy

Every company has a few key metrics that—if nailed consistently—virtually guarantee growth and success. Scorecards ensure that what everyone is working on ties directly to these strategic objectives.

When broken down into weekly and daily metrics, these scorecards create a direct line between daily activities and your 6-18 month strategic initiatives. They're the connective tissue between strategy and execution.

This is why tools like EOS (Entrepreneurial Operating System) and the Rockefeller Habits emphasize scorecards so heavily—they're not just measurement tools, they're alignment tools.

3. They Surface Problems Where They Happen

Traditional management often involves leaders trying to assess progress by "looking at the wake of a giant cruise ship." Good luck with that.

Scorecards flip this model. When people closest to the action track their own metrics, problems surface immediately where they can be solved fastest.

This creates an early warning system that lets you identify and fix problems before they become catastrophes—and without endless status meetings.

4. They Slash Unproductive Communication

Yes, communication is the lifeblood of organizations. It's also one of the biggest time-sucks.

Every synchronous meeting, phone call, and check-in interrupts deep work and dilutes productivity. Scorecards consolidate much of this non-productive communication into numbers and quick reports.

This helps everyone stay aware and aligned without endless meetings... freeing up valuable time for actual execution.

Why Most Scorecards Fail (And How to Fix Them)

Most scorecards track the wrong things. They focus exclusively on outcomes—which matter, but aren't directly under our control—instead of balancing outcomes with activities.

The Dual-Track Approach:

1. Track outcomes (sales, retention, satisfaction scores) as your north star

2. Track activities (calls made, problems solved, features shipped) as your engine

Here's why this matters: You directly control activities, not outcomes. By tracking both, you can:

• Ensure you're crushing your activity goals (what you control)

• Verify those activities are producing the right outcomes (what matters)

• Calculate the ROI of specific activities and people

• Dial in exactly how many resources you need for desired outcomes

Building Effective Job Scorecards

Job scorecards are the individual manifestation of company scorecards—and they're critical for execution excellence. An effective job scorecard should answer:

1. What activities and outcomes constitute a great day or week for this role?

2. What must be done to avoid a bad week?

3. How does this role directly contribute to company goals?

4. What defines self-judged success each day?

The most powerful job scorecards include:

• 3-5 key outcomes that define success (with specific metrics)

• Core daily/weekly activities that drive those outcomes

• Clear standards for what "excellent" looks like

• Weighted importance for different metrics

• A direct line to broader organizational goals

But don't overcomplicate it—the best scorecards are simple enough to be referenced multiple times daily.

Implementation Framework: The 10-Day Scorecard Revolution

Want to transform your team's performance in just two weeks? Here's how:

1. Days 1-2: Define the critical few metrics that truly drive success for each role

   • Limit to 5-7 metrics maximum

   • Include both activity and outcome measures

   • Make sure every metric is objectively measurable

2. Days 3-4: Create simple tracking mechanisms

   • Use tools like Traction Tools, Strety or even Google Sheets

   • Make updating take less than 2 minutes daily

   • Ensure data is visible to relevant team members

3. Days 5-7: Daily completion ritual

   • Have everyone update their scorecards at the same time (end of day works best)

   • Include a 5-minute reflection on what influenced the numbers

   • Record one action to improve tomorrow's metrics

4. Days 8-10: Conduct pattern recognition reviews

   • Look for correlations between activities and outcomes

   • Identify which activities deliver the highest ROI

   • Adjust scorecards to focus more energy on highest-impact activities

By day 10, you'll see patterns emerging that weren't visible before—and team members naturally shifting their focus to what drives results.

On Implementation

Here's the part most leadership advice glosses over: this requires discipline. It's not sexy. It won't feel revolutionary at first. But neither does going to the gym—until you see the results.

The companies that dominate their industries aren't just smarter—they're more disciplined about the fundamentals. And consistent scorecard usage is one of those fundamentals that separates the elite from the average.

Start by doing it yourself first. Track your own metrics religiously for two weeks before asking your team to do the same. Experience the power firsthand—then lead by example.

Remember: Good days stack to good weeks. Good weeks stack to green months. And green months create breakthrough years.

AMA
My weekly meetings are dull. I feel I’m just reviewing numbers and updates, and getting very little participation. How do I make these more useful?

This is very common in most weekly meetings I sit in. A major change is in how you go over “the numbers” or the scorecard.

First: you should have 2 sections to review

• Scorecard on the daily activities and outcome that ensure success. What, if it happened, would guarantee success? These should be the numbers you review. Set these correctly (see the main issue today for a deeper dive on this)

• The strategic projects. Every 90 to 120 days, there should be 1 thing the company is working on building or improving. The whole company should be working on some aspect of this. These are the strategic drivers. There should be 3-5 sections, that if nailed, mean the new initiative is a success.

The style of “review” is crucial. It should be “Shark Tank Style”. That is, they should be going over their own numbers, not you. You should be there to ask tough questions and get clarity.

This clarity is for them and the team. A few weeks of this, and they’ll realize they need to know their department or area. They need to know not just what, but why. They need to come prepared to talk about problems and improvements as well.

Shifting to this style puts the accountability and understanding on them. It develops leaders in positions, not just followers.

I have them give a “four square” that comprises

1. what happened

2. summary (“walk me through the week, how did we get here”

3. Problems and issues

4. Improvements and actions

Turing it so they are doing most of the talking through these sections and you are getting to prod changes the dynamics of the meeting and makes it a much more productive meeting.

If you have a question you’d like answered here, reply to this email and let me know. Your question might be featured next!

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