The Only Scorecard You Need to Build a $10M Business
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Summary
You re spending over 60 hours a week juggling all the responsibilities in your business and you still feel like nothing s getting done? I know how you feel because I used to be there too. I went from being overwhelmed, distracted, burnt out to running a $10M a year business in just 45 minutes per week using a single scorecard. And I m gonna share with you the easy step-by-step process I took to remove myself from the day-to-day of the business and how you can do it too.
Transcript
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juggling all the responsibilities in your business
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and you still feel like nothing's getting done.
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I know how you feel because I used to be there too.
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I went from being overwhelmed, distracted, burnt out
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in just 45 minutes per week using a single scorecard.
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to remove myself from the day-to-day of the business
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Number one, every number in the scorecard has a name
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if you just put a box red that their name's associated to.
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So everything can actually be measured on a weekly basis,
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some kind of net new count that somebody's responsible for.
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and have everybody on the team know how well they're doing,
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design a graph that goes down if they're not doing good
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I remember one time I was working with my media team
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and they were telling me about all their great projects
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And yet the revenue team is waking up every day
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And they have this graph that everybody looks at
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in the office that goes up into the right and i just asked the team from a media point of view
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what's your graph what's your up into the right what are you measuring to tell you that on a daily
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basis you're making progress because they didn't have one it was hard to figure out what was
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important once we designed it then they self-corrected then they prioritized the projects
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based on what was going to make that graph go up into the right easy peasy but needed somebody to
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do it number four every week has a reporting meeting meaning that when you sit down everybody
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has to self-report. I'll get into this in a second. So think about it this way. When a plane
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leaves New York City, it's heading to LA. Did you know the whole time the pilot's flying,
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they're off track, they're off course? What happens is they've got the dashboard in front
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of them that's telling them how to respond and readjust. See, most businesses are off target
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on a daily basis, but if they know they're off target, they can make an adjustment. And that's
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why it's important to measure on a weekly cadence, and if not daily, right? The more frequently you
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measure the less likely you'll get off track you probably don't want to know how bad it is that's
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why people don't measure they don't want to know that their bank account is overdraft they don't
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want to know that their lead generation isn't working that they haven't made enough sales to
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make their bills because then it gets them down it's kind of crazy because like the feeling
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associated to knowing is the reason why they don't know which causes them to fail even harder
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if you want to absolutely win in business you have to measure you have to monitor you have to set a
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frequency for review so that you can make adjustments in real time so it doesn't just
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add up. It's actually a self-sabotaging behavior that people do put their head in the sand and
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pretend like they don't know. So don't do that. I could never run the business remotely without
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having these sensors in place, these measurements in place, the metrics in place. Financials are
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after the fact. They're not real time. So I don't want to find out 45 days later, 60 days later,
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that there's an issue. I want to find out in real time that there's something wrong with the
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business? And where in the revenue stack is it broken? And if I have these sensors in place and
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they turn from green to yellow to red, then I also know who's responsible for it. So I know who to
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call. So it'd be impossible for me to sleep good at night without having a scorecard. Which brings
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us to number two, which is the weekly sync meeting. I remember one time I was coaching
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this company, they're doing about 16 million in revenue, a software company. And I remember asking
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the CEO, well, how frequently do you sit down with your team to review your quarterly rocks,
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your planning your strategy every week is it twice a week and he looks at me he goes oh we meet once
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a month and i was like once a month like do you understand what think about how much changes in
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four weeks let alone two weeks let alone week over week some companies that i know they they do it
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twice a week just because there's so much change and it's so dynamic and when he shared this with
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me i said look you need to install a weekly sync meeting where everybody resets because it's all
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about having every person on your team pulling on strings in the same direction there's nothing more
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wasteful than to find out if you have a small team of five people that each person is pulling
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on a different string in a different direction and nobody's making any progress well why because the
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other person's canceling out their effort so the weekly sync structure helps you align and focus
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your team on the most important priorities so here's what's required to have a great weekly
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sync structure first off is who's the meeting owner i personally don't like to run any of my
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meetings i'd rather be a participant so what i've done several times in companies is just have
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somebody else on the executive leadership team own the meeting and they might own it for a quarter
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or you might rotate through different people but essentially just responsible for the agenda they
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move topics they they're the time keepers they're capturing things they're making sure that the
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meeting is run really well the second thing is to review the vision in the mission of the business
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and this should be part of your agenda template because at the end of the day there's two things
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i know they're going to move businesses forward why are they doing it and who are they doing it
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with and both of those things are covered in the mission and the vision of your business you want
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to review it at the beginning of the meeting and make sure that everybody on your team is on the
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same page so they're singing from the same song sheet you don't want to be out of tune for whatever
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reason you fall out of passion with the vision and the mission you probably should have a conversation
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number three is reporting and this is so important most people get this wrong everyone has to update
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their own numbers. That's why the scorecard is a spreadsheet. It's not automated. I do it manually
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on purpose because I want the person who owns that number to go into the other system, pull the
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report, validate that it's accurate, and then update the spreadsheet. They update their numbers,
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not their assistant, not you, not your assistant. Have them do it. And then the team needs a report
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back on how they're doing. They need to let everybody know, I'm on pace, I'm below, I'm red,
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And then what happens is after you do the scorecard review
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Oftentimes, something that might help one department
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in the time allocated for the discussion, so important.
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The reason why is I want whoever ran the meeting
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to get some direct feedback on how well they did.
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If they let conversations fly off into the night
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and you didn't feel like you should have been there,
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if you don't feel like that meeting was useful,
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if I feel like I've given the feedback and it's a four
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and here's why, and it's the same thing the next meeting,
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Bad meetings waste time, productive ones drive success.
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we've got a goal of hitting 500,000 subscribers.
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that he just couldn't get the outcomes from them
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without him getting involved, which is frustrating
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that if they just sit back and create a problem,
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The outcome is communicating clearly with your team
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I mean, I like to even also add potentially some rewards.
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most people need a little bit of carrot and stick
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Using the scorecard, we have to choose the metric
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They have a number that's gonna be moved or not
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based on their work and their name is next to it.
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that person will start self-adjusting the way they work
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to move stuff without waiting on you to solve problems.
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instead of attacking them in real time, write it down.
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are getting commitment going forward that they're going to change their approach to never make that
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mistake again. That's how we develop people. See, every time you start micromanaging someone,
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it's usually the beginning of the end. If the trust is gone, then you already know you can't
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work with them a long time. So don't think that your ability to jump in and solve problems is
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the right solution. It actually creates a bottleneck and it's called that because it's
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at the top and it's you. You probably want to jump in because it makes you feel useful. Sometimes
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when we get more time back, we hire people and we have less to do. It makes us feel like a little
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lazier we feel guilty for it but fight against that so that you don't get pulled back into the
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work that you bought back i mean the big idea is that if you buy back your time make sure it stays
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sold which brings us to number four which is to build your leaders i had a friend the other day
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he's in the lawn care space and he had a team member not respond to a customer fast enough
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and when i'm saying fast enough i mean within 45 minutes and the customer was upset and they
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texted the owner he calls the manager and kind of gets upset the manager and why didn't you reply
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Was there an agreement that the person should be responding
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Does every customer call you when they're upset?
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instead of allowing them to actually do the work.
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so my whole philosophy is build the people the people build the business how do we do that a
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few things it comes down to leadership accountability first off you need to have reporting in place
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that's why scorecards are so important that's why the weekly sync is so important you have
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to set up the space for reflection and have a dashboard that reports everything so everybody's
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on the same page second is you have to have the systems see if you're saying well you should have
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known you should have done this better like why did you make that mistake but you don't have a
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documented process for managing sales pipeline workflows in your business set up automation to
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make things more efficient look at where the bottlenecks are and remove them and have a system
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for cleaning things up then it's hard for people to actually work with you because you're not
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properly setting up the expectations and creating a scenario where they can actually win number three
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is strategy and this is one of the big things that leaders don't do strategy equals sequencing
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right time right action how do i make a decision to solve a problem make sure it's the right problem
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to solve right now deploy the right amount of money towards solving that problem and do it in
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the right order and have the right people involved to actually move the business forward when
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strategy is missing it can feel like a game of pinball for your team because every time you read
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a book or go to a seminar you come back and you change something number four is people and i call
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this htrt okay there's four areas you need to focus on when it comes to people you need to learn how
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to hire great people most people don't have that skill you'll learn how to train them teach them
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scale them up build skills number three is retain your top talent that's a skill set that most people
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don't know how to do in regards to performance bonus and measurements and structure and the
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fourth is transition transition up if they're awesome but most often transition out if they're
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not able to perform at the standards you need them but that's the people side because there's
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two funnels you have the customer funnel which is marketing and sales and getting new accounts
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and then you have the team funnel or the people funnel which is finding the people to deliver on
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So when both of those are happening at the exact same time,
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the more customers come in and the team is hired
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then your life is awesome and you make a lot of money.
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where you don't have enough customers for the team
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or you don't have enough team for the customer,
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then that's where you lose opportunities or lose money
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because your staff too high or don't have enough people.
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I believe in Reed Hasing, the CEO of Netflix philosophy,
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and we don't expect them to behave like children.
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So don't treat your team like they're children,
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treat them like they're adults and let them do the work.
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If you wanna learn how to start a business with no money,
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click the link and I'll see you on the other side.