How To Measure Success: Outer and Inner Scorecard – Warren Buffet and Nick Saban


There are 2 general ways to measure success:
• Outer Scorecard
• Inner Scorecard
Most people use the first.
The most successful use the second.

Let’s break them down.

The Outer Scorecard – It’s based on extrinsic motivation.

This is how most measure success.
• Fame • Money • Status • Influence • Accolades • Recognition • Achievement

The Outer Scorecard is fickle.
It’s defined by what the world thinks.
The problem is it’s outcome-focused.
Outcomes are mostly out of your control.
Playing by this scorecard is a fool’s game.

The Inner Scorecard – It’s based on intrinsic motivation.
This is how the best measure success. • Effort • Values • Principles • Standards • Excellence • Commitment • Performance

The Inner Scorecard is reliable.
It’s defined only by what you think.
This approach is process-focused.
The process is all within your control.
The best play by this scorecard.

The Inner Scorecard has simple principles:
• Live in the present
• Focus on the process
• Ignore all external voices
• Perform to your standard
• Forget about the outcome
Nothing else matters.

How To Develop Inner Scorecard:

What are my core values?
Your values drive your behavior.
Your behavior drives the Inner Scorecard.
Examples of values: • Courage • Integrity • Service • Ownership
Your values can be almost anything.
Clarifying them is a good first step.
Army’s values

It starts with committing to living the Army’s values:

  • Loyalty
  • Duty
  • Respect
  • Selfless service
  • Honor
  • Integrity
  • Personal courage

What is my personal standard?
We all need to decide.
Are we good with “good enough?”
Or do we want to maximize our potential?
Your “standard” is the unwavering commitment you make to how you live your life.
Your standards guide your Inner Scorecard.

How good do I want to be?
Good. Great.Your best.
Which one is it?
We all have a choice. How you answer will influence your scorecard.

EX 1:

Let’s say you sell cars.

Outer Scorecard example:

• Make $350,000 this year
• Win top salesperson award
• Get promoted

Inner Scorecard example:
• Improve sales skills every day
• Obsess over every customer
• Make each sales call great

EX 2:
Let’s say you’re a startup CEO.
Outer Scorecard example:
• Raise $50 million
• Be on Forbes 40 under 40
• Win “best new startup” award
Inner Scorecard example:
• Make your pitch amazing
• Build a fantastic business
• Relentlessly execute every day

Key Takeaways
• 2 ways to measure success
• The Inner Scorecard is intrinsic
• The Outer Scorecard is extrinsic
• The best live by an Inner Scorecard
How you measure success will largely determine ho successful you’ll be.

Leave a Comment

Your email address will not be published. Required fields are marked *