Lazy Leverage

Dashboards, Scorecards, and the Hidden Psychology Behind Manual Data Entry | Lazy Leverage #90


Listen Later

The best operators in M&A make hundreds of millions because they "model deals elegantly," but billionaires "can barely do the math. They just only do deals where they can't lose."

At least that’s what Jon and Peter believe. It's Warren Buffett's philosophy in action; that price is your due diligence.

Metrics should be entered manually, not automated. The psychological weight of pulling numbers and inputting them weekly creates accountability that automated dashboards never achieve. It's the difference between ownership and passive observation.

They distinguish between dashboards (lagging indicators like revenue) and scorecards (controllable activities like reviews requested). This separation, learned from their EOS coach Chris Kaplan, prevents teams from chasing metrics they can't influence week-to-week.

Next we’re asking, “Should you judge people on outcomes or process?” Saban (echoing Bill Walsh) says focus on the controllables. That is, the score takes care of itself. But Jon admits he's "constantly ripped in half" between mandating process and demanding results. Peter suggests it depends on performance level: high performers get freedom, struggling performers get prescription.

They tackle paired metrics as protection against perverse incentives, using India's snake-bounty program as a cautionary tale. When the government paid for dead snakes, people started breeding them. Similarly, optimizing turn time without pairing it with customer satisfaction leads to cutting corners.

Finally, Jon and Peter riff on Saul Alinsky's "Rules for Radicals", particularly when he says that, when pressure increases, people try to diffuse responsibility.

As a manager, your job is keeping accountability focused: "You are responsible for everything that does and doesn't happen to make this number improve."

Key Topics:

(07:47) Why Automation Kills Accountability
(10:20) Building Your First Scorecard: Start Imperfect and Iterate
(12:41) Dashboard vs. Scorecard: Lagging Indicators vs. Controllable Activities
(19:57) Control the Controllables, Not the Score
(37:27) How Incentives Create Perverse Outcomes
(41:14) Why DLER Must Be Balanced with Customer Satisfaction
(45:38) Change the Metric, the Goal, or the Person
(48:56) High Care, High Standards.

Stay connected for more insights and strategies by following:

Jon: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@MatznerJon⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ on X and at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠lazyleverage.beehiiv.com⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠
Peter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@pslohmann⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ on X and at ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠peterlohmann.com

...more
View all episodesView all episodes
Download on the App Store

Lazy LeverageBy Jon Matzner and Peter Lohmann

  • 5
  • 5
  • 5
  • 5
  • 5

5

5 ratings


More shows like Lazy Leverage

View all
The Knowledge Project by Shane Parrish

The Knowledge Project

2,698 Listeners

The GaryVee Audio Experience by Gary Vaynerchuk

The GaryVee Audio Experience

16,854 Listeners

Founders by David Senra

Founders

2,201 Listeners

The Game with Alex Hormozi by Alex Hormozi

The Game with Alex Hormozi

4,478 Listeners

Modern Wisdom by Chris Williamson

Modern Wisdom

4,096 Listeners

My First Million by Hubspot Media

My First Million

2,660 Listeners

All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

All-In with Chamath, Jason, Sacks & Friedberg

10,267 Listeners

Acquisitions Anonymous - #1 for business buying, selling and operating by Bill D'Alessandro, Mills Snell, Heather Endresen, and Michael Girdley

Acquisitions Anonymous - #1 for business buying, selling and operating

251 Listeners

Huberman Lab by Scicomm Media

Huberman Lab

29,365 Listeners

Peter Lohmann's Podcast by Peter Lohmann

Peter Lohmann's Podcast

20 Listeners

Acquiring Minds by Will Smith

Acquiring Minds

280 Listeners

Moneywise by Hampton

Moneywise

646 Listeners

BG2Pod with Brad Gerstner and Bill Gurley by BG2Pod

BG2Pod with Brad Gerstner and Bill Gurley

460 Listeners

The Koerner Office - Business Ideas and Deep Dives with Chris Koerner by Chris Koerner

The Koerner Office - Business Ideas and Deep Dives with Chris Koerner

259 Listeners

Think Big, Buy Small by Harvard Business School

Think Big, Buy Small

38 Listeners