Electrifying Growth Episode 65: The Scoreboard Test: Measuring Effort vs Results

Most teams are busy. Projects move forward, calendars stay full, and progress is easy to describe. But at the end of the quarter, the only measure that truly matters is what shows up on the P&L.

On this Sit Down with Sugden feature, Managing Partner Chris Sugden talks through a common leadership trap: measuring effort > results. From sales teams that hit booking targets while revenue lags, to departments that report on activity without connecting it to margin or growth, Chris introduces the “Scoreboard Effect.”

Using examples from both business and sports, Chris explains how leaders can rethink objectives, refocus teams on outcomes that directly impact financial performance, and ensure every part of the organization understands how its work contributes to revenue, gross margin, or EBITDA.

If you’ve ever sat in a review where everything sounded productive but the numbers told a different story, this episode will resonate.

Frequently Asked Questions

What is the “Scoreboard Effect” in business leadership?

The “Scoreboard Effect” is the tendency for teams to measure activity and effort, instead of the outcomes that appear in a company’s financial results. Just like in sports, where statistics like time of possession don’t determine the winner, in business, only improvements to revenue, gross margin, and EBITDA truly reflect success.

How can leaders tell if their teams are measuring effort instead of results?

A simple test is to ask: "If this goal is achieved, will it clearly improve the P&L?"
If the connection between the objective and financial performance is unclear, the team is likely tracking effort (calls made, meetings held, tasks completed) rather than results (revenue growth, margin improvement, productivity gains).

How should departments outside of sales tie their work to financial results?

Every department can connect its work to the company’s financial performance. For example, customer support can reduce cost per interaction while improving satisfaction, operations can increase productivity, and product teams can drive retention and expansion. The key is measuring outcomes that improve revenue, gross margin, or EBITDA > activity levels.

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