How to Use Financial Metrics in Level 10 Meetings to Drive Smarter IDS Sessions

If you’re using EOS®, you’ve probably sat through Level 10 Meetings where the same financial issue resurfaces—again and again. It might be low profitability, inconsistent cash flow, or out-of-control overhead. You talk about it, nod in agreement, assign a To-Do... and then see it again next week.

The deeper truth: Financial problems don’t get solved with surface-level talk. They get solved when you bring in the right financial metrics, use them during IDS, and turn them into focused, measurable solutions.

Why Metrics Are Non-Negotiable in the IDS Process

IDS—Identify, Discuss, Solve—works best when the issues are anchored in reality. And financial reality comes in numbers. But too often, numbers are missing from the conversation—or misused.

What happens without metrics:

• Leaders speculate instead of solve

• Frustration builds between departments

• Decisions become subjective and political

• The same issues reappear, eroding trust in the process

  
  

With the right metrics:

• Teams identify root causes, not just symptoms

• Discussions become grounded and productive

• Solutions become measurable and trackable

• Progress becomes visible to the entire team

  
  

That’s not just better finance—it’s better leadership.

Identify: Use Metrics to Pinpoint the Real Issue

Most financial issues show up first as symptoms. “Our margins are off.” “We’re behind on cash.” “Revenue’s up, but profit is flat.”

When you go into IDS without data, you’re guessing. When you bring in metrics, you can move from assumption to insight.

Which Financial KPIs Belong on Your Scorecard?

While your metrics should reflect your unique business model, a strong EOS Scorecard for finance typically includes:

Metric	What It Tells You	When to Use
Gross Margin %	Overall profitability health	Always
Revenue per FTE	Operational efficiency	When labor costs are high
DSO (Days Sales Outstanding)	Collections and cash health	In services or B2B
Job Profitability	Health of individual contracts	Project-based companies
Fixed vs. Variable Costs	Leverage and scalability	For growth-stage firms

Choose Metrics That Match Your Business Model

• Service firms: Revenue per billable head, client churn, utilization rate

• Product companies: Inventory turns, COGS %, contribution margin

• SaaS: MRR, churn rate, customer acquisition cost, LTV/CAC

  
  

Pro tip: Keep your Scorecard lean. Focus on 5–10 metrics that show cause and effect—not vanity indicators.

Understand the Drivers Behind the Numbers

A declining margin could mean pricing problems, scope creep, or overtime. Financial metrics should lead you to operational diagnostics:

• Pricing strategy: Have rates kept up with inflation and wage pressure?

• Labor: Are high-value team members doing low-value work?

• Customer mix: Are low-margin clients dominating your bandwidth?

  
  

The IDS process becomes dramatically more productive when the issue comes with context.

Discuss: Ground Conversations in Financial Context

Discussion is where financial friction often shows up. Marketing blames sales. Ops blames finance. People defend their turf.

Metrics remove ego from the equation. They let you talk about performance, not people.

Build Metric Fluency Across Teams

If finance is the only team that understands the numbers, your IDS discussions will stall. Make financial fluency a leadership skill.

Ways to build it:

• Include quick metric overviews in onboarding

• Use visual dashboards during Level 10s

• Hold monthly "finance fluency" training sessions led by your CFO or fractional CFO

  
  

Real-World Scenario: Overhead Cost Spikes

Without metrics: “Let’s cut some costs.”

With metrics:

• Overhead spend up 18% YoY

• Marketing spend increased 40%

• Labor cost per project is rising

Now you're asking better questions:

• What’s the ROI on that marketing spend?

• Is our scheduling inefficient?

• Do we need new SOPs or tech tools?

Discussion becomes: strategic, collaborative, and forward-moving.

Solve: Turn Data Into Measurable Action

This is where many teams fall flat. You’ve identified the issue, discussed the drivers—but now what?

“Let’s do better” is not a solution. Metrics are just as important in the “S” as they are in the “I.”

Set Clear, Financially Tied Outcomes

• “Reduce average invoice age from 47 to 30 days”

• “Improve job margin from 18% to 25% in 90 days”

• “Cut delivery cycle time by 15% by end of quarter”

These are actionable, measurable, and trackable.

Assign Ownership and Track Progress

Every solution needs:

• A named owner

• A clear timeline

• A place on the Scorecard or Rocks list

If it matters, elevate it to a Rock. Include it in your 90-day plan with check-ins each Level 10.

Common Financial Metric Pitfalls in Level 10s (And How to Fix Them)

Pitfall	Why It Happens	How to Fix It
Too many metrics	Trying to measure everything	Prioritize top 5-10 that drive decisions
Metrics not tied to action	Scorecard exists in isolation	Link metrics directly to IDS and Rocks
Data isn’t trusted	Manual or error-prone sources	Automate where possible; clarify sources
Metrics don’t evolve	Business changes, metrics don’t	Review and adust quarterly

Make Metrics a Natural Part of the Level 10 Rhythm

1. Use a Visual Language

A traffic light system (green/yellow/red) lets everyone know what needs attention instantly. Visuals lower the barrier for less analytical thinkers.

2. Make It a Habit

Metrics need a rhythm, just like Rocks. Review them weekly, not occasionally. Celebrate green. Dig into red. Look for yellow early warnings.

3. Revisit and Adjust

Every quarter, ask:

• Are we measuring what matters?

• Are metrics tied to our business goals?

• Do they inform real discussions?

  
  

If not, adjust. Your Scorecard is a tool, not a trophy.

It’s Not About Becoming Accountants. It’s About Becoming Better Leaders.

When metrics drive your Level 10 Meeting, your leadership team:

• Solves faster—you move from debate to decision

• Builds trust—teams rally around facts, not opinions

• Gets ahead—you spot problems before they escalate

  
  

This is the difference between a reactive leadership team and a strategic one.

Ready to Build a Financial Scorecard That Actually Drives Action?

We help EOS-run leadership teams build Scorecards that uncover root issues, enable smarter IDS conversations, and align financial clarity with company goals.

Let’s turn your Issues List into a solved list—one metric at a time.