Business Scorecards Have a Blindspot

In this episode Dr. Mike challenges conventional approaches to performance metrics by highlighting their limitations in a rapidly changing world. Using Nokia’s dramatic fall from market dominance as a cautionary tale, he arguex that traditional business scorecards often measure the wrong things—relying too heavily on past performance to forecast what lies ahead. KPIs and automated scorecards reflect historical success but fail to anticipate emerging threats or shifts in customer sentiment. Examples like Wells Fargo, Blockbuster, and Kodak illustrate how companies can meet internal targets yet lose market trust or miss disruptive trends. To counter this, he proposes a four-dimensional framework that serves as a counterbalance to overdependence on business scorecards: Strategic Foresight – Leaders must scan the horizon for change, test assumptions, and prepare for volatility rather than merely optimize current operations. Cultural Resonance – Leaders must stay emotionally attuned to shifting preferences and purchasing trends among their customer community to assure that their brand still connects meaningfully. Trajectory of Trust – Leaders must view trust as a form of capital that is to be monitored as carefully as any physical asset. Declining trust—internally or externally—is a warning sign that demands attention. Adaptive Capacity – Leaders must develop organizations that learn, unlearn, and relearn quickly. The ability to pivot strategically and culturally is essential for survival. Dr. Mike closes the episode with a reminder that leadership effectiveness depends not just on tracking performance, but on cultivating clarity, trust, and adaptability in the face of uncertainty. A PDF transcript of this podcast is available at https://www.upsizeyourleadership.com/episodes/2510-biz-scoreboards.htm. Learn more about your ad choices. Visit megaphone.fm/adchoices