Most teams are busy. Calendars are full. Projects move. Updates sound productive.
And then you look at the P&L.
If the numbers don’t reflect all that activity, you’re witnessing a simple, yet common leadership problem: measuring effort instead of results.
In sports, you can dominate time of possession, rack up yards, and still lose the game. None of those statistics determines the winner. Only the scoreboard does. In business, the scoreboard is just as clear: revenue growth, gross margin, and EBITDA. If those aren’t improving, activity alone isn’t enough.
This is the Scoreboard Test: a way of looking at performance that forces leaders to ask whether teams are optimizing for motion or outcomes.
Busy Motion vs Real Progress
Teams equate activity with contribution, and leaders often reinforce this idea (without realizing it) by setting goals that measure the number of tasks completed, instead of the number of impacts achieved.
You see it in annual reviews filled with accomplishments that don’t tie back to financial performance; in departments reporting on volume handled without connecting it to productivity; in sales teams celebrating bookings while revenue lags behind.
The issue isn’t effort; it's what that effort is measured against.
The Simple Test Leaders Should Apply
There’s a straightforward filter leaders can leverage across organizations. Ask, "If this goal is achieved, will it clearly improve the P&L?"
If the answer isn’t obvious, the goal is likely measuring effort, not results.
This is where many MBOs and company objectives go off track: Leaders define what gets measured. Then, when objectives emphasize activity—calls made, meetings held, tasks completed—teams optimize for those metrics.
But, when objectives emphasize outcomes—revenue growth, margin improvement, productivity gains—behavior changes.
Every Department Contributes to the Scoreboard
It’s easy to connect sales to revenue. It’s harder, yet equally important, to connect other functions to financial outcomes:
When teams understand how their work improves revenue, gross margin, or net margin, activity becomes aligned with outcomes.
Redefine What Progress Looks Like
True progress measures business improvement.
When leadership focus shifts from effort to results, performance reviews inevitably fall in line. Because at the end of every quarter, there is only one place to look for whether your company is winning: the scoreboard.
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.