Glossary
Target
A target is the number written beside a measure that says what a good week looks like: twelve proposals, ninety-five percent on time, cash collected. A direction is not a target. More, better and faster cannot go red, so they never start a conversation. Set the first one at what a good week looks like today, then raise it once the team hits it three weeks running.
01
How to set a target that survives the first month
Every Scorecard row carries one target, and the weekly answer is on track or off track rather than a paragraph. Set the first version from your own trailing thirteen weeks instead of an industry figure, because the job of the first quarter is to find out what normal looks like here. Adjust at the quarterly, not after a bad Monday.
A target set too high stops carrying information. When a row is red every week, the team learns to read past it, and the meeting loses a row without anybody deciding to drop one. A target set where the team already sits teaches nothing either. The common failure is picking a number to motivate rather than to describe, then quietly moving it at quarter end so the board reads green.
Worked example: A specialty bakery set a target of forty wholesale accounts contacted a week because the owner liked the sound of it. The team hit nineteen, twenty-two and eighteen, then stopped reporting the row at all. Rebuilt from the previous quarter, the honest number was twenty. The target went to twenty-four, was met in four of the next six weeks, and later moved to twenty-eight.
Sources: kpi.org/kpi-basics/kpi-development; Traction, Gino Wickman, chapter on Data
Goal band
A goal band replaces a single target with a range: green above one number, red below another, and a middle zone that means watch this.
02KPI
A KPI is a number a leadership team has agreed to run the business by: one owner, a goal written next to it, and a slot on the weekly agenda.
03Variance
Variance is the gap between the target and the actual, written as a number or a percentage: goal twelve, actual nine, variance minus three.
04SMART goal
SMART is a checklist for writing a goal so that anybody can tell whether it was met: specific, measurable, achievable, relevant and time-bound.
05KPIs: what they are, how many to track, and which matter
A practical guide to key performance indicators for small companies: definitions, leading vs lagging measures, examples by department, and how many to track.
Start with a real question
Not sure which of these you actually need?
Tell us what the leadership team is arguing about. A person replies within one business day with a straight answer, whether that is a book, a tool or an implementer.
A person reads every one.