Kicking Sacred Cows To The Curb

Sacred Cows. We all have them in our organizations.

What do we call programs that lose money? A member benefit! Do not get caught in that cycle.

I speak with chamber execs all the time that share their frustration of that new project initiated by the new chairman. We’ve all been there.

When we add new programs, do we delete a program? No. Use these economic times to shed those losers.

I wrote about scorecards in a previous post. Creating a scorecard can be very effective in sun-setting those programs, products or services that: don’t make money; members don’t value anymore, or have become a sacred cow of the organization.

A scorecard to measure the value of your programs, products or services should track at least the following items as a starting point:

• Revenue
• Costs - direct and indirect (i.e., staffing costs)
• Stated goal of program, product or service
• Evaluation of program, product or service by members
• Measure the results

As a sidebar, we should be reminded of the “Hedgehog Theory” stated by Jim Collins in his book titled, Good to Great, and include the theories’ three criteria in the final analysis:

1. Do we have passion for this program, product, or service?
2. Are we, or can we be the best in delivering this program, product or service?
3. Do we make money on this program, product or service?

After you’ve implemented this assessment tool in your yearly review process, it should provide a strong argument on whether to continue a program, product, or service in the coming years – or kick that sacred cow to the curb!

For a previous blog post on program based budgeting go HERE.

Scorecards: Do You Have One For Your Board of Directors?

Do you have a scorecard for your Board?

If not, you should.

We all know our Boards are supposed to be the biggest supporters of our organizations.

What better way to showcase that by creating a scorecard for your Board of Directors!

The scorecard should be prominently displayed at every Board Meeting. It should be in every Board book produced. Peer pressure is a wonderful thing. No one wants to be a slacker.

Yes, peer pressure works!

At the very least, the following items should be included in any scorecard:

• Board Terms
• Attendance Record for Board Meetings
• Membership Level (Platinum, Gold, Silver, Bronze, etc.)
• Number of Members Recruited
• PAC Contribution (if you have one)

These are just a few examples of what you might want to include in your scorecard. While some board members may push back, get the backing of your current chair, incoming chair and membership chair. Let them lead the charge.

Part of your annual “Board Orientation” should include the scorecard and set the expectation up front of their role as leaders of the organization. If all your board members are on the same page, you will have a stronger chamber.

Start that scorecard today!

For a sample scorecard go HERE.