Full transcript
0:00Do you ever feel like you're drowning in
0:01tasks and have no choice but to work 10
0:04or 12-hour days? Well, that used to be
0:06me as well until I built this simple
0:08system that lets me work as many hours I
0:10want and still grow my business. So, in
0:13this video, I'm going to show you that
0:15system, the tool that goes with it, and
0:17how to customize it for your business so
0:19that you can work less and scale faster.
0:21Now, this system is built around one
0:23simple tool, the business scorecard. And
0:26to save you a ton of work, you know,
0:27building it, I'm just going to give you
0:29the template that I normally keep for my
0:31high-level clients in the Mastery
0:33Operating System. You can click the link
0:35in the description below to get it. So,
0:37here's what we're going to do. First,
0:38I'm going to walk you through the
0:39scorecard and how it works and how to
0:41use it. And then I'll show you how it
0:43plugs into the full system that you can
0:45use to run your business.
0:48>> [music]
0:48>> When you open the scorecard here, what
0:50you'll notice are a number of tabs along
0:52the bottom. You'll see the year tab, and
0:54then you'll see a tab for each month.
0:56Let's start with the monthly view, okay?
0:59What you'll see is that in the rows,
1:01each month is broken down into weeks,
1:03obviously depending on the month. Some
1:05weeks are 1 day, some weeks are [music]
1:077 days, but I prefer it this way so we
1:09can get a clear picture of the whole
1:11month without any overlap.
1:13>> [music]
1:13>> You can obviously change this if you
1:14want, but I wouldn't really recommend
1:16it. Now, in the columns, you'll see four
1:18different sections [music] to track. So,
1:19we have the business essentials, which
1:21are revenue, cash collected, expenses,
1:23and profit. Then we have the three major
1:25functions of every business, marketing,
1:27sales, [music] and operations. Now,
1:29remember this is a template, so
1:31depending on your business, you might
1:33have other functions that you want to
1:34track. That's fine. You can just add
1:36them to the scorecard, but [music] these
1:38are the essentials for every business.
1:40In each function, you're going to track
1:41the three major metrics of that
1:43function. So, if you imagine a basic
1:45system or function in a business, you
1:47have the input, a number of processes,
1:49and the output. The output is the most
1:51important metric as it's the one that
1:53really matters. It's what the system is
1:55trying to achieve. Now, for each of
1:57these functions, as you can see, I've
1:58left the three major metrics that you
2:00should track [music] blank as they will
2:02be relevant to your business and your
2:04system. So, obviously I can't [music]
2:06tell you what they should be, but a
2:07general rule of thumb for what metrics
2:09to track is that metric one should be
2:11around volume or inputs, metric two
2:14should be around conversion or
2:15efficiency, and metric [music] three
2:16should be around outcome or goal result.
2:19So, you know, if we look at marketing,
2:21the first metric could be number of
2:23emails sent or number of pieces of
2:25content posted. The second might be
2:27conversion percentage on your lead
2:29magnet landing page, and the third is
2:31going to be the goal output of
2:32marketing, so
2:33>> [music]
2:34>> leads generated. Now, under the metric
2:37row, what you'll see is a goal row,
2:39okay, this row here. This is where you
2:41want to fill in the goal you have for
2:44each metric, so the standard that you
2:45want it to reach. Now, if you're not
2:47sure what this should be for each
2:49metric, just ask ChatGPT. If you give it
2:51some context around your business, your
2:53niche, your systems, your offer, and all
2:55that, it's normally pretty good at
2:57giving you some sort of benchmark here.
2:59Then, at the bottom of this sheet,
3:01you'll see that we have an average and
3:03total row. The purpose of these is for
3:05the yearly tab, which we'll get into in
3:06a minute, but what they do is they
3:08calculate the average and total for each
3:10metric automatically as you fill in the
3:12data for that month. Now, whether you
3:15use the average or total depends on the
3:18metric. So, if it's a raw number, the
3:19likes of revenue or number of leads
3:21generated or sales made, you want to use
3:23the total. And if it's a percentage like
3:25conversion rate or churn or show-up
3:27rate, you want to use the average. Now,
3:30once you've customized this for your
3:32business, all you have to do is one
3:34thing. Every week, you open the
3:36spreadsheet and you fill in the number
3:37for that week, okay? So, you know, if
3:39you made $10,000 in revenue in one of
3:43the weeks, you type in $10,000. Super
3:45simple, right? And a really cool thing
3:47that you can do here is you can add
3:48comments in certain weeks. So, if you
3:50ran, you know, in this week here, you
3:52ran a marketing campaign or you changed
3:54the headline or whatever you did, you
3:57can add that as a comment on the week
3:59that you did it. Then you can look at
4:01the data over the next few weeks that
4:03follow and actually see what impact that
4:05change had. And you'll basically end up
4:07knowing why the data changed the way it
4:09did rather than just being like, "Oh,
4:10something changed. This got better or
4:12this got worse." And now you can see why
4:14it changed, whether or not the change
4:16was good or bad. This way you learn,
4:18right? This way you increase your
4:19knowledge base, and you actually become
4:21better business and you can grow faster
4:23while working less. Now, of course, some
4:24decisions you'll need to wait, you know,
4:26say one or two or even three months
4:28before deciding if it's good or bad
4:30depending on the volume you have flowing
4:31for your business, but still it gives
4:33you a point of reference as to when
4:35something changed, what it was that
4:37changed, and the impact of that change.
4:39Now, here's how the year view works. If
4:41we go to the year view,
4:45it is the same layout as the monthly
4:47tab. Only instead of weeks in the rows,
4:49we've got each month of the year. And
4:51right now you'll see, you know, a ton of
4:53zeros and divide or div zero errors.
4:56Don't panic, okay? Don't be like, "What
4:58the [ __ ] is this?" That's simply because
5:01this yearly tab is pulling data from the
5:03monthly tab, and so those tabs aren't
5:04filled in yet. So, for example, the
5:06January revenue here is linked [music]
5:08to the revenue cell inside the January
5:11tab. So, this yearly tab will
5:13auto-populate as you track data each
5:15month, okay? Now, see these uh div zero
5:19errors? Else these cells are linked to
5:20the monthly average cell for that metric
5:23in that month. You may need to change
5:24this to the total cell for that metric
5:27in that month if the metric is a raw
5:28number, not a percentage. So, [music] if
5:30the metric is a raw number, you want to
5:32pull the total, but if it's a
5:33percentage, we want to pull the average.
5:35For example, if in marketing, the metric
5:37three that we want to track is leads
5:39generated, it's a raw number, not a
5:41percentage. Therefore, we want to track
5:43the total for that month, not the
5:45average. So, in that case, just update
5:47that cell in the yearly view to
5:49reference the total cell in that month's
5:51tab, not the average. And say if you
5:53don't know how to do that, just put a
5:54few screenshots of the spreadsheet in
5:56the ChatGPT and ask it. It'll tell you
5:58exactly what to do step by step. Now,
6:01most business owners will never be able
6:02to run their business effectively
6:04because they'll never use a scorecard
6:06like this for two main reasons. Firstly,
6:09because they tell themselves that
6:10they're not a numbers person, which is
6:12[ __ ] [ __ ] You're a business
6:14owner, you have to be a numbers person.
6:15Stop telling yourself that story, which
6:17does nothing but limit you and hold your
6:19business back. Or two, they'll feel
6:21overwhelmed and use it for a week before
6:24quitting. Now, luckily, I have six super
6:26simple things that I get all my clients
6:28to do, which makes using this so easy
6:30that it's actually hard not to do. The
6:32first is manual entry, okay? Look,
6:34certain parts of this scorecard are
6:36automated like the averages and the
6:37totals on the yearly tab pulling from
6:39the monthly tabs, but the vast majority
6:42of it requires you to manually enter the
6:45data, and that is intentional. See, when
6:47you manually enter the data, you
6:48actually understand the data better. You
6:50get a better pulse on where the business
6:52is at a much higher level than if
6:53everything is just automatic. Like if
6:55you just come in here and all this data
6:56was automatically filled in, it means
6:58[ __ ] nothing to you, right? But
7:00because you are manually doing it, it
7:03hits harder. You get to see where your
7:05business actually is. And because it's
7:07manual, you're much less likely to
7:08forget about it. Secondly, stay on
7:10track. The main reason people hate
7:12scorecards and data and stuff like that
7:13isn't because of the say the scorecard
7:16itself, it's because of what happens
7:17when they don't fill in the data
7:18regularly. You fall behind, you get
7:20overwhelmed, and you're like,
7:21[clears throat] "Oh, [ __ ] there's so
7:22much to do. I'll just leave it." But you
7:25never get back to it. So, a key to
7:26making this work is making sure that you
7:29stay on track and use the scorecard
7:30regularly by making this part of your
7:32business workflow. Now, don't worry, I'm
7:34going to show you the easiest way to do
7:35this in a few minutes, so stick around.
7:37But thirdly, we want to use trends over
7:40points. So, the main problem with data
7:42is that in smaller time frames like the
7:44day-to-day, right? There's fluctuations
7:46primarily due to the operations of your
7:47business, and if you make decisions
7:49based on the day-to-day fluctuations,
7:51your decisions are just going to be
7:53[ __ ] So, instead, we want to utilize
7:55trends and the direction the data is
7:56moving in. Again, don't panic. I'll show
7:58you how to do this soon. But this is why
8:00we have the yearly view so that we can
8:02see averages and trends. Number four,
8:04keep it simple. So, I've tested a bunch
8:06of different tools for this. My clients
8:07have too. Most of them are super
8:09powerful, but that's actually the
8:10problem. When something is so powerful,
8:12it normally ends up being too
8:13complicated, and therefore there's too
8:14much friction. You end up not using it.
8:16You don't stick to it. You never use the
8:18data. That's why this is in Google
8:20Sheets, okay? There's absolutely nothing
8:22complicated about it, especially since,
8:23you know, I'm giving you the template.
8:25You just fill in the numbers once a
8:26week. And if you want this to work, keep
8:28the scorecard as simple as possible.
8:30Number five, use the data. So, the best
8:33thing about this scorecard is that it
8:34gives you an actual objective view of
8:37what's working and what's not working in
8:39your business based on where the data is
8:41in relation to its goal. That's why we
8:42have the goal row. So, what you want to
8:44do is prioritize what you're working on
8:46today or this week or this month or this
8:48quarter based on the data that is the
8:50bottleneck. Typically, the bottleneck is
8:52the metric that's furthest below its
8:54goal earliest in the system. You can now
8:56see what needs fixed the most and
8:57therefore prioritize it so that you're
8:59no longer guessing and progress becomes
9:01easy, predictable, and consistent.
9:04Number six is to assign ownership. So,
9:06see every single metric in this
9:08scorecard, it needs an owner, someone
9:09who is responsible for improving it.
9:11Now, obviously, if you're a solopreneur,
9:13you're responsible for all the metrics,
9:15but if you've got a team, ensure that
9:17everyone knows the metric they're in
9:18charge of and that you know what metrics
9:20you're in charge of, if any. But now,
9:23how do you actually use this scorecard
9:25to run your business without having to
9:26work, you know, 12-hour days every day?
9:28Well, let me show you. So, there's four
9:30steps to systematizing this. Firstly,
9:33you want to have a scorecard for each
9:35function, okay? So, this scorecard
9:37[music] that you're seeing here is your
9:38business scorecard. It shows you the
9:40high-level overview of your entire
9:42business, [music] but each function in
9:43your business, so marketing, sales,
9:45operations, and finance
9:46>> [music]
9:47>> should also have its own scorecard that
9:49tracks the day-to-day numbers in much
9:51more detail. So, I'll throw an example
9:52up on screen here, but
9:54>> [music]
9:54>> in the monthly tabs, instead of tracking
9:56data each week, you track data every
9:58day. And instead of only tracking three
10:00major metrics, you track [music] every
10:01step of that system that can be
10:03measured. This way you can keep the
10:04business scorecard super simple and
10:06clear, but if something is broken and
10:08you want more information, you jump into
10:10the relevant function scorecard to find
10:11[music] which specific metric is
10:13actually causing the problem. Secondly,
10:15ownership. So, remember how one of the
10:17rules is that every metric in your
10:19business scorecard should have an owner,
10:20someone who is responsible for it. Well,
10:23how that actually looks in terms [music]
10:25of workflow is your marketing lead is
10:27responsible for all the marketing
10:28metrics. That means they're responsible
10:30for filling in the marketing scorecard
10:32[music] every day. You then go into the
10:33marketing scorecard once a week, get
10:35that week's data for the relevant
10:37metrics, and add it into the business
10:38[music] scorecard. And if you want to
10:40keep a pulse on the business and truly
10:42understand where it's at [music] and the
10:43direction it's moving, I would highly,
10:45highly, highly, highly, highly recommend
10:48you fill in the business scorecard data
10:50yourself. Do not get someone else to do
10:51it. Do not automate it with AI because
10:53when you do it yourself, it [music]
10:55forces you to look at where your
10:56business actually is for 10 minutes, and
10:58you'll make better decisions all week.
11:00Now, that [music] brings us to the third
11:01step, which is a weekly review. So,
11:04look, data is great, it's fantastic, you
11:06need it in your business, but it's
11:08pretty useless if you don't actually do
11:09anything with it. So, you want to take
11:11some time on a Sunday. Well,
11:13you can do it whatever day you want, but
11:15like you're not going to do it on a
11:16Wednesday, are you? It's It's a bit
11:17weird, but anyway, each to their own.
11:18Either way, take 10 minutes once a week
11:20to review [music] the business
11:21scorecard. What are the problems? What
11:24needs fixed? You can then dive into the
11:26system-level scorecards if you need more
11:28detail, and you can then prioritize
11:29[music] fixing what needs to be fixed.
11:32And say if you've got a team, I would
11:33highly recommend doing this in a team
11:35meeting on a Monday for about 30 minutes
11:37and going over the data with the team so
11:39you guys can [music] identify the
11:40primary constraint, come up with a
11:42solution for fixing it, and who will
11:44[music] implement it. Step four then is
11:45execute. So,
11:47now your week is super simple, okay?
11:48You're not guessing, you're not reacting
11:50to whoever shouts loudest in Slack or
11:52whatever emails are the most urgent
11:53because you know what matters based
11:55[music] on the data, and so you can go
11:57all in on it, and it's super simple,
11:59okay? The whole workflow is this. You
12:02have system-level scorecards that track
12:04every metric in that system. Your team,
12:06or you if you're a solopreneur, fills
12:08these in at the end of every day. You
12:10then have the business scorecard.
12:11[music] You fill this in based on the
12:13data from the system scorecards every
12:15Sunday. Then you do a weekly review. You
12:17review what's broken, [music] what's
12:19working, and what needs executed on.
12:21Either doing this, you know, on a Sunday
12:22or during a Monday morning team meeting,
12:24it's okay. You You then execute what
12:26needs executed on fixing problems based
12:29on data. Take an action based on data.
12:31You're no longer guessing, and you've
12:33just taken back control of your dumb
12:35business. Look, most entrepreneurs are
12:37drowning in decisions. They're stuck in
12:39the weeds and wasting, you know, 12
12:41hours a day trying to figure out what
12:42matters. This scorecard gives you the
12:44answer in 10 minutes, and you can now
12:45theoretically and actually quite
12:47literally run your business in 10
12:49minutes a week because you can delegate
12:50all the day-to-day tasks to your team,
12:52and you just make the decisions based on
12:55the scorecard. But of course, you
12:57probably have some other work that you
12:58want to do and that you need to do. So,
13:01if you want the system that I use so I
13:02can run my business in less than 4 to 5
13:04hours a day, click the video on screen
13:06now, and I'll show you exactly how it
13:08works.