HQ2 is all the buzz and whether your city gets the opportunity to become Amazon’s Headquarters’ #2 or this exercise for civic assessment is needed.
In 2001 Boeing was looking to move their headquarters from Seattle. Dallas was on the shortlist for the potential move, yet failed to secure the opportunity.
The scorecard for this move exposed that downtown Dallas was dead and had no culture. Losing Boeing may have been the best thing to ever happen to Dallas. The snub by Boeing jump-started the revitalization of downtown Dallas. Klyde Warren Park, the Arts District and the signature bridges over the Trinity River are some of the easy to identify results.
Just as cities do a self-examination on their civic desirability, they should measure themselves against other municipalities. They must keep score.
How important is keeping score?
As we work with businesses and individuals to reach financial goals, keeping score is required. Why? If you don’t know the “score” how can you make changes or improvements?
We often encounter the same question; What should I measure with my scorecard?
For each business and individual, it is different however it is always a measurement to support the goals that have been set.
Business – Professional Services
Goal – Increase revenue year over year
We created a weekly spreadsheet to monitor billable hours. This was information that is readily available in their timekeeping system. However, without having a simple place to evaluate and see the week by week results this information was useless. Their scorecard is not just for the owners. Everyone on the team participates in keeping score and seeing the results. YTD results – revenue has increased 25% year over year.
Business – Manufacturer
Goal – Monitor and track gross margin
This company has grown rapidly in the last 5 years. When we were engaged to evaluate their financial statements, we were surprised to learn that their financial statements were not designed to monitor gross margin.
We assisted in creating a job scorecard. Each job is evaluated and the results are communicated weekly to management and the entire team. Successes and failures are shared in an environment that has changed. Profitability has stabilized and opportunities for improvements are being implemented.
Goal – Eliminate Credit Card Debt
This couple was in there early to mid-thirties when we began working with them. In an early meeting, we asked why they had accumulated nearly $40,000 in credit card debt. The answer was “We don’t know”. Together we created a plan to eliminate the debt. Our weekly Blueleaf report became the scorecard for tracking the progress.
The results? Together with incredible commitment, they eliminated the debt in 22 months. They were so inspired by the success, that within another 6 years they achieved an incredible goal. They completely paid off the home mortgage. Today, they are debt free and experience the success of having an abundant cash flow that gives them flexibility in their life’s goals.
Where is Your Scorecard?
Having a scorecard creates focus and drives success.
We can guide and support you or your business in creating your scorecard and goals.
Give us a call today. 214-239-4700
Enjoying the feel of Fall
Michael Tannery CPA, CDFA® AIF®
Be A Financial Olympian