WEBVTT 00:00:00.000 --> 00:00:01.201 - What's up? Dan Martell here. 00:00:01.201 --> 00:00:03.937 Serial entrepreneur, investor and creator of SaaS Academy and 00:00:03.937 --> 00:00:07.990 in this video I want to talk about creating a killer 00:00:07.990 --> 00:00:10.744 scorecard for you to hold your team accountable 00:00:10.744 --> 00:00:13.981 and crushing goals. It's way easier than you think. 00:00:13.981 --> 00:00:17.217 This is going to be the most impactful thing you've ever 00:00:17.217 --> 00:00:19.169 deployed to your business. 00:00:19.169 --> 00:00:20.163 It's gonna give you clarity. 00:00:20.163 --> 00:00:22.623 It's gonna feel awesome and then be sure to stay to the end where 00:00:22.623 --> 00:00:25.592 I share my Weekly Sync strategy, a download, 00:00:25.592 --> 00:00:30.364 a framework, process, a checklist for you to run your 00:00:30.364 --> 00:00:32.900 weekly meetings to keep everybody on the same page. 00:00:32.900 --> 00:00:35.640 And what's cool is in there is the scorecard that 00:00:35.640 --> 00:00:37.237 I'm gonna teach you today. 00:00:37.237 --> 00:00:39.139 So be sure to stay to the end and I'm gonna tell you how to 00:00:39.139 --> 00:00:40.516 get a copy of that. 00:00:40.516 --> 00:00:43.912 (upbeat music) 00:00:52.619 --> 00:00:54.645 So when I was growing my company Spheric we were about 00:00:54.645 --> 00:00:58.558 16 employees, almost a couple million in revenue and 00:00:58.558 --> 00:01:02.195 I realized that I was running this company ass backwards. 00:01:02.195 --> 00:01:05.232 I mean the truth was that everybody reported to me which 00:01:05.232 --> 00:01:07.634 meant that their to-do list was my to-do list. 00:01:07.634 --> 00:01:10.237 I spent most of my time trying to grow the business. 00:01:10.237 --> 00:01:12.339 Hiring people, closing new deals, 00:01:12.339 --> 00:01:15.175 on boarding, training people and at the same time trying to 00:01:15.175 --> 00:01:18.011 ensure that everybody's work was done at a quality level to not 00:01:18.011 --> 00:01:20.080 embarrass me as the owner. 00:01:20.080 --> 00:01:22.916 I remember waking up in the middle of the night trying to 00:01:22.916 --> 00:01:25.319 remember did I ever send that invoice or did that person ever 00:01:25.319 --> 00:01:28.088 pay me or did I ever get that employment contract signed 00:01:28.088 --> 00:01:30.324 and I just felt ridiculously overwhelmed. 00:01:30.324 --> 00:01:34.528 I mean the truth was I had to imagine at that point other 00:01:34.528 --> 00:01:38.365 companies at scale did not run their business that way. 00:01:38.365 --> 00:01:42.215 Like it was very ad hoc reactive to the situation 00:01:42.218 --> 00:01:45.711 and I did like most challenges that came up in 00:01:45.711 --> 00:01:47.888 my life is I turned to books and I started reading things 00:01:47.888 --> 00:01:49.643 like The Four Disciplines of Execution 00:01:49.643 --> 00:01:52.012 and Balanced Scorecards and many other 00:01:52.012 --> 00:01:54.781 incredible business leaders in their strategies. 00:01:54.781 --> 00:01:58.251 And what I came up with was what I believe to be the most 00:01:58.251 --> 00:02:02.589 simplified scorecarding system for companies at scale. 00:02:02.589 --> 00:02:05.225 There's five core principles that I want to share with you 00:02:05.225 --> 00:02:09.229 that are present in this scorecard format that will help 00:02:09.229 --> 00:02:11.431 you get clear, hold people accountable, 00:02:11.431 --> 00:02:14.801 and honestly build momentum and growth in your business. 00:02:14.801 --> 00:02:17.371 Number one, funnel metrics. 00:02:17.371 --> 00:02:19.840 If you think about the things you're gonna measure, 00:02:19.840 --> 00:02:24.611 okay, this could be everything from website visitors to contact 00:02:24.611 --> 00:02:29.316 form completions to sales calls to eventually deals closed to 00:02:29.316 --> 00:02:32.886 customer satisfaction to all kind of the different numbers 00:02:32.886 --> 00:02:34.221 that you'd want to know about your business. 00:02:34.221 --> 00:02:35.098 Think about it this way. 00:02:35.098 --> 00:02:37.524 If I went away on a desert island and I could only get a 00:02:37.524 --> 00:02:40.560 one page report about my business's health, 00:02:40.560 --> 00:02:42.162 what would I want to see on that report? 00:02:42.162 --> 00:02:45.399 Well, the way I think about that is I look 00:02:45.399 --> 00:02:47.534 at the funnel of numbers. 00:02:47.534 --> 00:02:50.103 'Cause it's always, you know if you think about it like top of 00:02:50.103 --> 00:02:53.287 funnel is kind of the activity like social marketing, 00:02:53.287 --> 00:02:56.343 inbound marketing, traffic to your website. 00:02:56.343 --> 00:02:58.378 You know maybe events that you attend if you're a speaker, 00:02:58.378 --> 00:02:59.046 whatever it is. 00:02:59.046 --> 00:03:00.881 There's stuff you do to get awareness in the market. 00:03:00.881 --> 00:03:05.118 Then there's the conversion tool or the sales strategy that you 00:03:05.118 --> 00:03:08.255 just take from that awareness or opportunities that show up and 00:03:08.255 --> 00:03:09.356 convert them into customers. 00:03:09.356 --> 00:03:11.291 'Cause that's kind of like another step in the funnel. 00:03:11.291 --> 00:03:14.027 Then after that there's well, I got the contract then I got to 00:03:14.027 --> 00:03:15.829 do the work and how happy is the customer 00:03:15.829 --> 00:03:17.597 and monitoring that process. 00:03:17.597 --> 00:03:19.900 And then finally, you know at the end of it, 00:03:19.900 --> 00:03:21.234 how much revenue did I generate? 00:03:21.234 --> 00:03:23.170 How much did it cost me to generate that revenue and 00:03:23.170 --> 00:03:24.104 did I make any profit? 00:03:24.104 --> 00:03:26.106 So if you think about that it's the bottom of the funnel. 00:03:26.106 --> 00:03:28.842 Most entrepreneurs when I ask them if they have a scorecard 00:03:28.842 --> 00:03:30.677 and they say yes and I say, "Show me the numbers," 00:03:30.677 --> 00:03:31.745 it's all over the place. 00:03:31.745 --> 00:03:36.316 There's like 50, either there's like two or there's 50 and 00:03:36.316 --> 00:03:38.852 they're not in any specific order so the big idea, 00:03:38.852 --> 00:03:41.922 number one is funnel metrics meaning lay out 00:03:41.922 --> 00:03:43.657 your metrics in a spreadsheet. 00:03:43.657 --> 00:03:46.827 So always put the numbers on the left side and then the date 00:03:46.827 --> 00:03:50.630 ranges as columns so that you can kind of see how the activity 00:03:50.630 --> 00:03:53.597 at the top slowly impacts the middle and at the bottom and 00:03:53.597 --> 00:03:54.768 are you making any money? 00:03:54.768 --> 00:03:56.103 So those are the funnel metrics. 00:03:56.103 --> 00:03:58.605 It's different for every business but at a high level 00:03:58.605 --> 00:04:01.775 just want you to order them in that strategy so you can get 00:04:01.775 --> 00:04:04.945 clarity of how they all kind of roll down to 00:04:04.945 --> 00:04:06.379 the bottom of profit. 00:04:06.379 --> 00:04:08.448 Number two, weekly measurement. 00:04:08.448 --> 00:04:12.519 Every week we sit down and we review our scorecard as a team. 00:04:12.519 --> 00:04:15.322 That means that not matter what datapoint we're measuring, 00:04:15.322 --> 00:04:17.724 we want to get the current number for 00:04:17.724 --> 00:04:19.226 that week and that date. 00:04:19.226 --> 00:04:22.195 So we want to see it, we plot it on the spreadsheet. 00:04:22.195 --> 00:04:25.465 This is not fancy scorecards on a TV screen. 00:04:25.465 --> 00:04:30.170 This is literally a spreadsheet and we update it and that way we 00:04:30.170 --> 00:04:33.406 have a cadence of every week of measuring our progress. 00:04:33.406 --> 00:04:37.177 Too often entrepreneurs wait. I mean most of them, 98%, 00:04:37.177 --> 00:04:38.512 they wait to the end of the year, 00:04:38.512 --> 00:04:39.716 They get a report from their accountant and 00:04:39.716 --> 00:04:41.181 they decide to go have a drink. 00:04:41.181 --> 00:04:42.649 They're either gonna drink 'cause they had an incredible 00:04:42.649 --> 00:04:45.485 year or they're gonna drink because they had a crappy year. 00:04:45.485 --> 00:04:47.921 But what I want you to do is get in the habit 00:04:47.921 --> 00:04:51.258 of taking 52 shots on goal. 00:04:51.258 --> 00:04:53.560 That means that every week for every data point that you're 00:04:53.560 --> 00:04:54.861 measuring your funnel metrics, 00:04:54.861 --> 00:04:56.863 you're looking if you made progress. 00:04:56.863 --> 00:04:59.566 And what's great is if you have crazy aspirations, 00:04:59.566 --> 00:05:01.408 and I don't know how you're gonna hit your numbers. 00:05:01.408 --> 00:05:04.337 If you want to, you know, 5X, 10X your growth in 00:05:04.337 --> 00:05:07.340 the next 12 months, you need to measure weekly to know 00:05:07.340 --> 00:05:08.642 if you're on track. 00:05:08.642 --> 00:05:10.410 And that to me is a discipline. 00:05:10.410 --> 00:05:12.879 As a team we sit down and we review it so we can make sure we 00:05:12.879 --> 00:05:16.049 can realign in strategies or tactics that may not be 00:05:16.049 --> 00:05:18.385 supporting the outcomes that we want to achieve. 00:05:18.385 --> 00:05:20.520 So weekly measurement is a must. 00:05:20.520 --> 00:05:24.591 Number three, net new numbers or ratios. 00:05:24.591 --> 00:05:27.694 Essentially what it is is the numbers you measure on a weekly 00:05:27.694 --> 00:05:31.765 basis isn't the total volume or the cumulative number. 00:05:31.765 --> 00:05:36.002 It's the net new created in that seven-day window. 00:05:36.002 --> 00:05:39.206 Meaning how many people visited our site in the last seven days? 00:05:39.206 --> 00:05:41.341 How many new leads did we add to 00:05:41.341 --> 00:05:43.977 our marketing funnel in the last seven days? 00:05:43.977 --> 00:05:45.812 How many deals have we close in the last seven days? 00:05:45.812 --> 00:05:48.882 How much revenue did we invoice in the last seven days? 00:05:48.882 --> 00:05:52.185 It's always the net new number and it's not a total because 00:05:52.185 --> 00:05:55.822 what happens is it's kind of the psychological effect where we 00:05:55.822 --> 00:06:00.060 have a thermostat in our mind and if we look at numbers and 00:06:00.060 --> 00:06:02.262 they're going up, as they would every week, 00:06:02.262 --> 00:06:05.865 you should be doing something, if they feel good we actually 00:06:05.865 --> 00:06:09.035 slow down our focus and aggressiveness 00:06:09.035 --> 00:06:10.170 on fixing the number. 00:06:10.170 --> 00:06:14.174 But, check this out, if you're a sales guy and you're just 00:06:14.174 --> 00:06:17.177 looking at total sales for the quarter then at a certain level 00:06:17.177 --> 00:06:18.745 you're gonna feel pretty good at yourself. 00:06:18.745 --> 00:06:21.248 But if you actually looked at the effort or the outcome the 00:06:21.248 --> 00:06:23.516 last seven days and it's a big goose egg, 00:06:23.516 --> 00:06:25.585 a doughnut, a zero, you're gonna go, 00:06:25.585 --> 00:06:27.988 "Well shit, I did a bunch of stuff last week and it didn't 00:06:27.988 --> 00:06:30.390 "show up in anything for my sales number." 00:06:30.390 --> 00:06:35.295 So as a team you don't want to measure the total number for a 00:06:35.295 --> 00:06:38.431 month or a quarter or a year, you want to track the net new 00:06:38.431 --> 00:06:41.334 activity or you want to create a ratio which might take a couple 00:06:41.334 --> 00:06:46.393 other data points and looked at that ratio as a data point 00:06:46.393 --> 00:06:48.174 and how does that look over time. 00:06:48.174 --> 00:06:52.318 So that is a huge opportunity to clear up the numbers 00:06:52.318 --> 00:06:53.743 and focus on the right things. 00:06:53.743 --> 00:06:56.327 Is only track the net new outcomes of the activity 00:06:56.327 --> 00:06:59.419 in the previous seven days in your scorecard. 00:06:59.419 --> 00:07:02.389 Number four, targets and actuals. 00:07:02.389 --> 00:07:06.559 If you're tracking every week and you don't have a target for 00:07:06.559 --> 00:07:10.083 the month then you're missing a incredible opportunity 00:07:10.085 --> 00:07:11.398 to keep the team accountable. 00:07:11.398 --> 00:07:13.366 Look, if you do this, if you negotiated, 00:07:13.366 --> 00:07:15.035 "Hey, what are we gonna do in the next quarter," with your 00:07:15.035 --> 00:07:19.739 team and they set the targets and then every month you track 00:07:19.739 --> 00:07:21.374 the target for the month in the actual. 00:07:21.374 --> 00:07:22.509 So this is the number you said. 00:07:22.509 --> 00:07:24.277 Every metric, every funnel metric, 00:07:24.277 --> 00:07:27.247 lead gen, website traffic, sales volume, 00:07:27.247 --> 00:07:29.649 revenue, profitability, net promoter score, 00:07:29.649 --> 00:07:32.585 I mean you can Google the metrics that you want to monitor 00:07:32.585 --> 00:07:33.486 for your business. 00:07:33.486 --> 00:07:35.722 But if you have the targets and then you have the actual, 00:07:35.722 --> 00:07:38.224 'kay, which is how are we doing average? 00:07:38.224 --> 00:07:40.026 It might be an average, it might be a total, 00:07:40.026 --> 00:07:43.096 whatever for the month then you know if you're two weeks into 00:07:43.096 --> 00:07:44.748 the month and you only have two weeks left that you should be at 00:07:44.748 --> 00:07:47.634 50% of that number so you can see the difference side by side. 00:07:47.634 --> 00:07:49.869 It's like if the number's supposed to be 100 for the month 00:07:49.869 --> 00:07:52.405 and you're at 20 and you're halfway through the month, 00:07:52.405 --> 00:07:55.308 there's no way unless you change something and you focus on it 00:07:55.308 --> 00:07:58.311 and you invest in it and you sit down as a CEO with your team and 00:07:58.311 --> 00:08:00.613 say, "Hey, this is not on track. 00:08:00.613 --> 00:08:01.668 "What are we going to do to fix it?" 00:08:01.668 --> 00:08:03.983 Because here's the big idea, 'kay? 00:08:03.983 --> 00:08:07.620 If you miss a number on one week and you still want to hit your 00:08:07.620 --> 00:08:10.223 target for the month, you gotta make it up the next week. 00:08:10.223 --> 00:08:11.358 If you miss it for the month, 00:08:11.358 --> 00:08:13.026 you gotta make it up the next month. 00:08:13.026 --> 00:08:16.629 Most entrepreneurs set such aggressive goals that if they 00:08:16.629 --> 00:08:19.632 start to slip there's no way they're gonna catch up. 00:08:19.632 --> 00:08:24.371 So you can not take your eye off of the target or the actual for 00:08:24.371 --> 00:08:27.107 that period and I'm recommending weekly. 00:08:27.107 --> 00:08:31.344 Number five, assign ownership to the funnel metrics. 00:08:31.344 --> 00:08:34.177 The reason why we want to do this is if you're the CEO 00:08:34.177 --> 00:08:36.116 like I was when I was building Spheric 00:08:36.116 --> 00:08:38.351 and you feel accountable for everything. 00:08:38.351 --> 00:08:40.986 Nobody cares about my business and I always have to check on 00:08:40.986 --> 00:08:44.023 people and all this stuff, it's 'cause you haven't given them 00:08:44.023 --> 00:08:46.593 the accountability to update the number and own the numbers. 00:08:46.593 --> 00:08:48.294 You might've said, "Hey, I want you to do this." 00:08:48.294 --> 00:08:50.530 And they're like, "That's great, I know what you want but I may 00:08:50.530 --> 00:08:52.132 "not be able to do that." Right? 00:08:52.132 --> 00:08:54.033 'Cause a lot of people are like, "Well how do I compensate?" 00:08:54.033 --> 00:08:56.836 Or, "How do I encourage people in sales or customer success 00:08:56.836 --> 00:08:59.272 "when there's no quota or commission structure?" 00:08:59.272 --> 00:09:00.940 Look, humans are simple. 00:09:00.940 --> 00:09:03.009 We want to know how the game is played, 00:09:03.009 --> 00:09:05.812 how do we score a goal and how are we doing in that game? 00:09:05.812 --> 00:09:09.249 So if you give them the score and you monitor their 00:09:09.249 --> 00:09:11.151 performance, they will self-adjust. 00:09:11.151 --> 00:09:15.522 If they said, "Look, I'm gonna do 100 sales this month," and 00:09:15.522 --> 00:09:17.857 halfway through the month they're at 30, 00:09:17.857 --> 00:09:21.995 they will fix their activities to adjust and make sure they 00:09:21.995 --> 00:09:24.665 make up the missing numbers to hit the 00:09:24.668 --> 00:09:26.166 numbers at the end the month. 00:09:26.166 --> 00:09:29.769 'Cause here's the cool part, is everybody on the team knows. 00:09:29.769 --> 00:09:32.305 And what I do is I assign those numbers to the person 00:09:32.305 --> 00:09:33.540 responsible for updating it. 00:09:33.540 --> 00:09:37.143 So before our weekly meeting, our Weekly Sync which I'll share 00:09:37.143 --> 00:09:39.913 with you in a second, everybody goes and updates, 00:09:39.913 --> 00:09:42.282 grabs the numbers from these different systems and updates 00:09:42.282 --> 00:09:46.152 the spreadsheet so that they know their number. 00:09:46.152 --> 00:09:48.721 So most people don't even know their numbers and then they're 00:09:48.721 --> 00:09:51.691 accountable to it 'cause they updated it and then in team 00:09:51.691 --> 00:09:54.527 Weekly Sync you review them as a group so you create this 00:09:54.527 --> 00:09:57.063 beautiful thing called positive peer pressure. 00:09:57.063 --> 00:09:59.299 Where the peers, their leadership team, 00:09:59.299 --> 00:10:03.503 their other folks on their team are holding them accountable to 00:10:03.503 --> 00:10:06.539 their numbers because they reported and if they losing or 00:10:06.539 --> 00:10:08.808 missing or slipping then the rest of the team will be like, 00:10:08.808 --> 00:10:11.211 "Hey, that's not cool because you not hitting your marketing 00:10:11.211 --> 00:10:13.513 "targets is affecting my sales opportunities 00:10:13.513 --> 00:10:14.481 "and we need to adjust that." 00:10:14.481 --> 00:10:18.251 So make sure you assign ownership of the metrics to 00:10:18.251 --> 00:10:21.521 individuals that should own those within your company and 00:10:21.521 --> 00:10:24.891 ideally per category, not individual numbers. 00:10:24.891 --> 00:10:26.326 Somebody should own customer success. 00:10:26.326 --> 00:10:27.594 Somebody should own sales. 00:10:27.594 --> 00:10:29.562 Somebody should own marketing. 00:10:29.562 --> 00:10:32.699 So quick recap on creating a killer scorecard. 00:10:32.699 --> 00:10:34.467 Number one, funnel metrics. 00:10:34.467 --> 00:10:37.670 Make sure you list the metrics on the left side of your 00:10:37.670 --> 00:10:40.473 spreadsheet sorted by top of funnel, 00:10:40.473 --> 00:10:41.808 mid funnel, bottom of the funnel 00:10:41.808 --> 00:10:44.777 and then operational or finance numbers. 00:10:44.777 --> 00:10:46.813 Number two, weekly measurement. 00:10:46.813 --> 00:10:49.749 Every week your team should update those numbers. 00:10:49.749 --> 00:10:52.418 Three, net new or ratios. 00:10:52.418 --> 00:10:55.188 Don't put totals or cumulative numbers. 00:10:55.188 --> 00:10:57.190 Put the new activity for that week. 00:10:57.190 --> 00:10:59.659 Four, targets and actuals. 00:10:59.659 --> 00:11:02.896 Know where you're going, how are we measuring on our way there on 00:11:02.896 --> 00:11:05.164 a monthly and quarterly basis and adjust accordingly. 00:11:05.164 --> 00:11:08.234 And five, assign ownership. 00:11:08.234 --> 00:11:11.905 Everybody on your team that's responsible for a project or an 00:11:11.905 --> 00:11:14.674 outcome should own the number associated to it 00:11:14.674 --> 00:11:17.343 and that is how you keep accountability, clarity, 00:11:17.343 --> 00:11:19.979 and a high performing team executing. 00:11:19.979 --> 00:11:21.748 So as I mentioned at the beginning of this video, 00:11:21.748 --> 00:11:25.251 I want to share with you the Weekly Sync agenda structure 00:11:25.251 --> 00:11:28.922 that I use to run my team meetings every week. 00:11:28.922 --> 00:11:32.466 I mean it is the most comprehensive focused 00:11:32.466 --> 00:11:35.128 and high output team structure. 00:11:35.128 --> 00:11:38.298 Every week I have things like customer headlines. 00:11:38.298 --> 00:11:40.900 We talk about issues, we talk about our scorecard. 00:11:40.900 --> 00:11:42.902 Hence why I wanted to share this framework with you. 00:11:42.902 --> 00:11:45.838 We talk about the big rocks that we need to execute but we do it 00:11:45.838 --> 00:11:48.775 in a very structured way that gets us in and out. 00:11:48.775 --> 00:11:51.444 Everybody synced up and executing for the week. 00:11:51.444 --> 00:11:55.682 So you can click the link below to download your copy today and 00:11:55.682 --> 00:11:58.284 if you liked this video, I'd encourage you to click the like 00:11:58.284 --> 00:12:01.588 button, subscribe to my channel and be sure to share this video 00:12:01.588 --> 00:12:03.423 with a friend and also leave a comment. 00:12:03.423 --> 00:12:05.892 Let me know out of these strategies I mentioned, 00:12:05.892 --> 00:12:10.396 what one thing out of the scorecard strategy were you not 00:12:10.396 --> 00:12:13.166 doing that you're gonna change in the way you measure today. 00:12:13.166 --> 00:12:15.401 I'd love to hear below in the comments. 00:12:15.401 --> 00:12:17.337 As per usual, I want to challenge you to live a bigger 00:12:17.337 --> 00:12:19.505 life and a bigger business and I'll see you next Monday. 00:12:22.365 --> 00:12:24.177 Perfect, cool.