Posts Tagged ‘scorecard’

Scorekeeping and Leaderboards to Drive Performance

Thursday, August 26th, 2010

Developing and testing new business simulations at CMOE is always a lot of fun.  It’s a time when the CMOE staff gets free lunches, prizes, and the opportunity to meet countless new people we ask to join us.  So in addition to creating or reworking our products, we create a culture of fun.

This past week I was assigned to pick up the food for a volunteer test group.  I went to get Pizza and as I was standing at the payment counter, I noticed a computer screen on this wall.  In big, black, block print, it read “LEADERBOARD.”  I was immediately excited to see this.  As I was waiting for my order to be finished, I was trying to identify what was being tracked by the “leaderboard” and how it worked.  It was obvious that the leaderboard was networked with other stores and I quickly noticed that the store I was purchasing from was second from the bottom.  This piqued my interest further.   I decided to speak with the manager to understand how it worked.

Scoreboard_000007362767LargeMe:  I noticed your leaderboard on the wall; it looks interesting.  It appears to be tracking certain success factors and percentages.  Do you get rewarded when you hit certain levels of performance?  The reason I ask is I work for an organization where we use effective management, measurements, and scorecards to drive bottom line profitability.

Manager:  Yeah, it tracks just about everything in the store from the time a phone call was placed to the time the order leaves the store for delivery.  Corporate can pull up data on just about anything in the store.

Me:  It doesn’t sound like you believe it’s a good thing by the way you are speaking.  Do you get recognized or rewarded for hitting certain levels of performance?

Manager:  No, it basically indicates what you have to do as a minimum to keep from getting fired.

The manager continued to explain that this tracking system was to help employees have higher levels of customer service, reduced mistakes, and shorten production times, among many other things.  While those are great focus areas, I was emotionally deflated by the way he explained it.  This employee was telling me that the “Leaderboard,” this scorekeeping system, was the worst thing about his job.

If organizations are to succeed against strong competition and have higher levels of profitability, measurement cannot build fear and negativity into employees.  Driving bottom line performance with the right measurement will engage people and get people excited and committed to push performance levels.  By using our piles of data, managers can help employees sort out measurements that drive individual results.

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Competition, Scoreboards, and Scorecards

Tuesday, April 20th, 2010

Are you a sports fan?  Have you ever been part of a game where competition was very high, where emotions are running high and you can feel the palpable tension in the air? Maybe you were even more excited than the players and became one of those crazy fans sitting in the stands! Regardless of whether you were a player or a fan at this type of event, the word “scoreboard” should be familiar to you. Sometimes this termScore_points_small is used to “trash talk,” coming at a point in the game when a player on the losing team makes a great play or scores point, but not enough to put their team in the lead. Someone rooting for the losing team might say something about how great the play was, to which the fan or player for the opposing team might simply say “scoreboard.” What does it mean? It’s simple: While the losing team may have made one great play, it simply is not enough to take the lead in the game. The scoreboard is where the results of the performance are shown, indicating how well the team members are playing and whether they are actually accomplishing their goals. It is the tool that measures who is winning and, ultimately, who won!

Competition, Winning, and Business

Your company probably has its own corporate scoreboard, but do you know where it is? If not, ask around and see if you can find it. Company scoreboards will manifest themselves in how the company shows its stakeholders the business’ earnings. Businesses need to make a profit. Companies that don’t make a profit won’t stick around, so, making a profit is a focal point for all for profit organizations. What about at the individual level? Individual performance is also measured in this way, but rather than a scoreboard, some companies use and individual “score card.” A scorecard shows how and in what ways each individual is accountable for performance that increases the bottom line. Scorecards drive results and have a tremendous impact on the bottom line and help people become more engaged in competing for “wins” at both the personal and organizational level. Asking individual members of the organization to develop a scorecard to visibly show and track performance will inspire better performance across the company and make positive changes in the following ways:

1. Hold people accountable for what they do while at work and how they contribute to the bottom line profits.

2. Help individuals see that they earn a pay check for authentic achievement, not for mindless activity.

3. Help individuals understand how each person contributes in their role to the organization’s overall profitability.

Scorecards will drive bottom-line results and create bottom-line leadership as individual contributors think more deeply about their own unique areas of the business. Keeping score of their successes on a regular basis (daily, weekly, monthly) can help people feel more energetic at work and increase their interest in organizational success over the long term. In your next weekly meeting ask everyone this simple question: Did you win or lose this week? Followed this question with, “What were you responsible for in terms of helping our company grow and be more profitable?” Using scorecards, asking questions, and engaging the entire workforce is powerful stuff, critical to the organization’s performance.

Increase Profits: The Chocolate Chip Cookie Principle

Wednesday, March 24th, 2010

While conducting a workshop on driving bottom line performance a few years ago for department managers in a chain of supermarkets, I had an interesting experience. One of the participants was a rather elderly and somewhat crusty Bakery Manager. His name was Lynn and at the first session he introduced himself as having been a bakery manager for longer than most of the other attendees had been alive. I took his unusual statement to mean that because of his experience he was unlikely to learn any new tricks or techniques about performance at any workshop, especially one facilitated by me.

You Can’t Teach A Old Dog New Tricks
Over the course of a couple of sessions, Lynn participated just enough to stay out of trouble with his boss, but not enough to gain much advantage as a manager. After the second session he told me privately that with his considerable experience as a manager he didn’t need to attend the sessions, but that he was being forced to attend. He told me, “You know old dogs can’t be taught new tricks. Well, I’m that old dog.” I thought at the time that he was trying to put me on notice that I should back off in trying to change his managerial style.

Lynn’s statement motivated me to look for a way to get his attention so he could benefit from the workshop experience. That’s when I concocted an experiment that not only taught him and his fellow managers a valuable lesson, but also me as well.

In the workshop I asked Lynn if he would help me conduct a “psychological experiment.” Before he could say no, two of his bosses were nodding affirmatively. Truthfully, I had set that reaction up in advance. Shame on me!

With Lynn obviously very reluctant to hear my proposal, I nonetheless pushed on. I told him that the experiment was to test the power of a graph, or scorecard, to motivate hourly employees to change their behavior. I explained that I would help him create a separate scorecard for each of his employees who worked the bakery counter on Saturdays. The scorecards would have the person’s name at the top, and across the bottom x-axis of the graph would be the dates of the next six Saturdays. Up the vertical y-axis would be numbers from 1 to 20.

Driving Results To Increase Profits
His employees would be instructed that each time they mentioned the words “chocolate chip cookie” to any customer in any way on Saturday they could put a mark or dot for that date progressing up from 1 mention of chocolate chip cookie to as many as 20 mentions. The measurement would be voluntary, because about one person in five typically doesn’t like to participate in such exercises that require competition. We would be happy to deal with the four out of five employees who find such exercises fun and exciting. The scorecards would be posted in the bakery back room and employees would be encouraged to keep their scorecard up to date as often as they could during the day. The experiment would use an honor system, where marking scorecards accurately would be up to the employees. Lynn’s responsibility would be to explain the exercise to the employees, have a positive attitude toward the exercise, and, of course, lead by example, because he needed a scorecard too.

At the next two workshop sessions Lynn gave brief progress reports on the project, but didn’t elaborate very much. I became worried that the experiment wouldn’t work and that Lynn might miss the point of it. But those fears were forgotten when Lynn returned to the last session and exclaimed, “Did you know that it’s possible to sell too many chocolate chip cookies?”Chocolate Chip Cookie_small

Lynn explained that by the second Saturday most of his employees really got into the exercise. It became a Badge of Honor to be recognized as the employee with the highest number of chocolate chip cookie mentions each week. Lynn’s assistant manager had a badge made at a local mall that said, “Chocolate Chip Cookie Champion.” The person with the highest mentions each Saturday got to wear the Champion badge during the following week, which further intensified the competition. Isn’t it interesting how a simple badge can create so much excitement? During the week his employees plotted what they were going to do and how they were going to get the most mentions. Lynn said that he had to adjust the rules because people “were taking unfair advantage.” One employee got on the store PA and mentioned chocolate chip cookies, then walked around the store counting how many customers must have heard her announcement, trying to claim those mentions. Another employee stopped in the middle of taking a cake decorating order and said, “Oh, by the way we sell chocolate chip cookies. Now how do you spell your son’s name?”

Apparently the competition got so intense and the bakery was selling so many cookies that the ovens were consumed with baking cookies, at the expense of the other products that needed oven time. That’s why Lynn exclaimed, “It’s possible to sell too many chocolate chip cookies.”

As a facilitator it was fascinating to see the change in Lynn’s attitude over the six session series of workshops. The crusty Bakery Manager became a champion of measuring, providing instant feedback, and healthy competition. He even told me in the last session that he had “learned a ton of new stuff.”

So how did Lynn’s cookie sales go? In his final report he explained that for as long as he could remember his bakery had sold about 15 dozen chocolate chip cookies on an average Saturday. (Actually, for a bakery the size he managed, 15 dozen is at best only a fair result, so I’m told.) The first Saturday of the project the bakery sold 27 dozen. The second Saturday they sold 36 dozen. The third Saturday they sold 67 dozen. The fourth Saturday they sold 117 dozen. And on the fifth Saturday they broke the bank, or perhaps the ovens, with 157 dozen chocolate chip cookies!

Increasing Profits 10X
The improvement over a month was a ten times increase. How did this happen? Providing frequent feedback to people who otherwise had not much incentive to suggestive sell cookies caused the incredible results. The personalized scorecards each employee had in the back room provided a method to measure performance. Thomas S. Monson once said, “When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.”
As Lynn was leaving the last workshop session I asked him, “Well, was this experience worth it?”
With a slight smile on his face Lynn replied, “Maybe it’s possible to teach an old dog a thing or two. Thanks for a great class.”