cover

Don’t let common problems run you and your business. Get a grip and gain control with the Entrepreneurial Operating System (EOS). Inside Traction, you’ll discover simple yet powerful ways to run your company with more focus, growth and enjoyment. Based on years of real-world implementation, the EOS is a practical method for achieving the business success you have always envisioned.

Takeaways

CHAPTER 1: The Entrepreneurial Operating System®: Strengthening the Six Key Components

The Core Components of a Successful Business: “Every great system is made up of a core group of basic components. The same applies to a business.” The Importance of Vision and Communication

  • Successful business owners not only have compelling visions for their organizations but also excel in communicating those visions effectively. Effective leaders inspire and align their teams by sharing a clear vision.
  • “Successful business owners not only have compelling visions for their organizations, but also know how to communicate those visions to the people around them.” Building a Strong Team: “Successful leaders surround themselves with great people. You can’t build a great company without help.” Metrics and Scorecards for Management
  • “The best leaders rely on a handful of metrics to help manage their businesses.”
  • “A Scorecard is a weekly report containing five to 15 high-level numbers for the organization.” Addressing Obstacles (Issues): “Issues are the obstacles that must be faced to execute your vision.” Documenting Processes: “Your processes are your Way of doing business. Successful organizations see their Way clearly and constantly refine it.” The Neglected Secret Ingredient
  • The Traction Component, involving execution and discipline, is often the most neglected of the Six Key Components. This component plays a crucial role in business success.
  • “Due to lack of knowledge, this secret ingredient in business is the most neglected of the Six Key Components.”
  • “You will not get your company to the next level by keeping your processes in your head and winging it as you go.” The Value of Traction: “The most successful business leaders are the ones with traction. They execute well, and they know how to bring focus, accountability, and discipline to their organization.”* [^10^] Overcoming Weaknesses: Due to fear and a lack of discipline, the Traction Component is often the weakest link in many organizations. Acknowledging and addressing this weakness is essential for growth.
  • “Due to fear and lack of discipline, the Traction Component is typically most organizations’ weakest link.”

    Highlights

  • Every great system is made up of a core group of basic components. The same applies to a business Ref
  • Successful business owners not only have compelling visions for their organizations, but also know how to communicate those visions to the people around them. Ref
  • Successful leaders surround themselves with great people. You can’t build a great company without help. Ref
  • the right people in the right seats. Ref
  • The best leaders rely on a handful of metrics to help manage their businesses. Ref
  • A Scorecard is a weekly report containing five to 15 high-level numbers for the organization. Ref
  • Issues are the obstacles that must be faced to execute your vision. Ref
  • Your processes are your Way of doing business. Successful organizations see their Way clearly and constantly refine it. Ref
  • Due to lack of knowledge, this secret ingredient in business is the most neglected of the Six Key Components Ref
  • You will not get your company to the next level by keeping your processes in your head and winging it as you go. Ask yourself: Have you documented the way you want everything done in your organization? Ref
  • the most successful business leaders are the ones with traction. They execute well, and they know how to bring focus, accountability, and discipline to their organization. Ref
  • Due to fear and lack of discipline, the Traction Component is typically most organizations’ weakest link Ref

    CHAPTER 2: Letting Go of the Vine

    Letting Go of Control to Reach New Heights: business owners struggle to reach the next level of growth because they are reluctant to let go of control. This is a common challenge, as entrepreneurs often feel their business is an extension of themselves.

  • “Most business owners are unable to reach the next level because they are simply not ready to let go of the vine.” Four Fundamental Beliefs
    1. Building and maintaining a true leadership team.
    2. Recognizing that hitting the ceiling is inevitable.
    3. Accepting that you can only run your business on one operating system.
    4. Cultivating an open-minded, growth-oriented, and vulnerable mindset.
  • “you must be willing to embrace the following four fundamental beliefs…” Building a Cohesive Leadership Team
  • “first rule of building a healthy organization: ‘Build and maintain a cohesive leadership team.’”
  • “As goes the leadership team, so goes the company. Your leadership team must present a united front to the rest of your organization.” Focusing on Internal Growth First
  • focus on internal growth before considering external growth. Simplifying and systemizing internal processes is essential to prepare the organization for expansion.
  • “need to start with a focus on internal growth before they can even think about external growth.” The Role of Simplicity in Progress: “No further progress and growth is possible for an organization until a new state of simplicity is created.” Embracing a Data-Driven Approach
  • Using the right data for decision-making is vital for business success. Prediction in business happens at both long-term and short-term levels. Wickman highlights the importance of collecting and analyzing relevant data to make informed decisions.
  • “Prediction in business is done on two basic levels: Long-term and Short-term.” 7 Systemizing and Accountability
  • Systemizing core processes within the company helps improve efficiency. This involves identifying essential processes and integrating them into a fully functioning system. Organization and accountability are key to this process.
  • “Systemizing involves clearly identifying what those core processes are and integrating them into a fully functioning machine.”
  • “Your company needs to be organized in a way that reduces complexity and creates accountability.” The Path to the Next Level
    1. Simplify the organization.
    2. Delegate and elevate.
    3. Predict both long-term and short-term goals.
    4. Systemize.
    5. Structure your company the right way The Value of Risk and Openness
  • quotes Dr. David Viscott to highlight the importance of being open to new ideas and taking risks. Embracing vulnerability and openness is key to growth and happiness in both personal and business contexts.
  • “The late Dr. David Viscott, author of Risking, wrote, ‘If you cannot risk, you cannot grow…’” 11

    Highlights

  • Most business owners are unable to reach the next level because they are simply not ready to let go of the vine. Ref
  • you must be willing to embrace the following four fundamental beliefs:
    1. You must build and maintain a true leadership team.
    2. Hitting the ceiling is inevitable.
    3. You can only run your business on one operating system.
    4. You must be open-minded, growth-oriented, and vulnerable. Ref
  • Each of your departmental heads should be better than you in his or her respective position Ref
  • first rule of building a healthy organization: “Build and maintain a cohesive leadership team.” Ref
  • As goes the leadership team, so goes the company. Your leadership team must present a united front to the rest of your organization. Ref
  • need to start with a focus on internal growth before they can even think about external growth Ref
  • No further progress and growth is possible for an organization until a new state of simplicity is created. Ref
  • By hanging on to all the tiny details, you’re actually constricting the company’s growth. Ref
  • Prediction in business is done on two basic levels: Long-term and Short-term. Ref
  • Systemizing involves clearly identifying what those core processes are and integrating them into a fully functioning machine. Ref
  • Your company needs to be organized in a way that reduces complexity and creates accountability Ref
  • next level: (1) simplify the organization, (2) delegate and elevate, (3) predict both long-term and short-term, (4) systemize, and (5) structure your company the right way. The tools you’re about to learn are all designed specifically to help you acquire those abilities. Ref
  • The late Dr. David Viscott, author of Risking, wrote, “If you cannot risk, you cannot grow. If you cannot grow, you cannot become your best. If you cannot become your best, you cannot be happy. If you cannot be happy, what else matters?”
  • Similarly, in your business environment, you have to be willing to be open to new and different ideas. If you don’t know something, you have to admit that you don’t know. You have to be willing to ask for and receive help. Most of all, you have to know your strengths and weaknesses and let other people who are more skilled than you in a certain area take charge. Ref
  • In summary, the four fundamental beliefs are as follows:
    1. You must build and maintain a true leadership team.
    2. Hitting the ceiling is inevitable.
    3. You can only run your business on one operating system.
    4. You must be open-minded, growth-oriented, and vulnerable. Ref

      CHAPTER 3: The Vision Component: Do They See What You Are Saying?

      • clarify your company’s vision and the steps required to make it a reality.
      • many entrepreneurs can see their vision clearly and wrongly assume that everyone in their organization sees it as well.

Vision Clarity and Sharing: get the vision out of your head and onto paper/doc. Aligning the Organization: if everyone in an organization is rowing in the same direction, the company can dominate any industry against any competition. This highlights the importance of aligning the entire team with the company’s vision. Defining a Bigger Vision: the vision must be more significant than an individual; it should define something bigger that the organization aspires to achieve Eight Questions to Clarify the Vision:

  1. What are your core values?
  2. What is your core focus?
  3. What is your 10-year target?
  4. What is your marketing strategy?
  5. What is your three-year picture?
  6. What is your one-year plan?
  7. What are your quarterly Rocks?
  8. What are your issues? Steps to Clarify Core Values:
  9. Step 1: Identify three individuals within your organization who, if cloned, would lead to market domination.
  10. Step 2: List the characteristics that these individuals embody.
  11. Step 3: Narrow down the long list of characteristics to identify core values.
  12. Step 4: Make the tough decisions to determine which values truly belong and are genuinely core. Core Focus and Avoiding Distractions: The term “core focus” derives from the company’s core and must be maintained with laser focus.
    • Wickman cautions against entrepreneurs getting distracted by “shiny” opportunities when they get bored, become overambitious, or seek other ventures. Staying committed to the core focus is vital for success.
    • The advice to “decide what business you are in and be in that business” emphasizes the need for clarity and dedication to your core focus. Defining the Purpose: defining the purpose, cause, or passion of the organization. Creating the Vision/Traction Organizer: lock the leadership team in a room for at least two uninterrupted hours to work on the V/TO, which will clarify the company’s vision. Specific 10-Year Target: the 10-year target must be specific, measurable, and inspiring to everyone in the organization. Narrowing Focus: stop trying to please everyone or competing in too many sectors, markets, services, or product lines, as it can lead to a lack of focus and potential failure. Clarity and Showing Over Telling: “Never tell someone something you can show them,” underscores the importance of demonstrating the company’s core values, purpose, and strengths rather than just talking about them.

      Highlights

    • As he well knows, most entrepreneurs can clearly see their vision. Their problem is that they make the mistake of thinking that everyone else in the organization sees it too. Ref
    • Entrepreneurs must get their vision out of their heads and down onto paper. From there, they must share it with their organization so that everyone can see where the company is going and determine if they want to go there with you. Ref
    • “If you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.” Ref
    • the vision you’re about to clarify can’t be about you. It has to define something bigger Ref
    • By answering the following eight questions and filling out the V/TO, we will clarify exactly what your vision is. Let’s get started. The eight questions are as follows:
    1. What are your core values?
    2. What is your core focus?
    3. What is your 10-year target?
    4. What is your marketing strategy?
    5. What is your three-year picture?
    6. What is your one-year plan?
    7. What are your quarterly Rocks?
    8. What are your issues? Ref
      • STEP 1 - Have each member list three people who, if you could clone them, would lead you to market domination. These three names should preferably come from inside the organization.
      • Once each person has his or her three, post all of the names on a whiteboard for everyone to see. Ref
      • STEP 2 - Go over the names and list the characteristics that those people embody. What are the qualities they exemplify? What do they do that puts them on the list? Start with a long list so that you can see all the possibilities. Ref
      • STEP 3 - Your organization’s core values are somewhere in that long list you’ve just created. - Now, narrow it down. In your first edit, circle which ones are truly important, draw a line through the ones that are not, and combine those that are similar. Remember, the rule of thumb is between three and seven; after the first round, you should have the list down to somewhere between five and 15. Ref
      • STEP 4 - Here is where you’re going to make some tough decisions. Through group discussion and debate, decide which values really belong and are truly core. Remember, your goal is to get your list down to between three and seven. Ref - When writing your core values speech, make sure you word each core value with the same pattern or tense (e.g., “To always …” or “We always …”). Make sure to bullet-point three to five supporting examples under each. Ref - Your job as a leadership team is to establish your organization’s core focus and not to let anything distract you from that. Ref - I call it core focus because it should come from your company’s core and you must stay laser-focused on it. Ref
      • When business owners get bored, there is always the potential for them to get distracted by the shiny stuff and inadvertently sabotage what they’ve created. Ref
      • The surest ways to lose your diamond mine are to get bored, become overambitious, or start thinking that the grass is greener on the other side. Ref
      • Decide what business you are in, and be in that business. As the old saying goes, “He who chases two rabbits catches neither.” Ref
      • Why does your organization exist?What is its purpose, cause, or passion? Ref
      • lock your leadership team in a room for a minimum of two uninterrupted hours. Ref

        Answering the Eight Questions

      • your 10-year target must be specific and measurable so that there can’t be any gray areas. You will know the right goal when you have it. It will be the one that creates passion, excitement, and energy for every single person in the organization whenever it’s repeated. Ref
      • If you try to please everyone, you’re going to lose your ass. Ref
      • The most common mistake that most organizations make involves competing in too many sectors, markets, services, or product lines, and trying to be all things to all people. It’s a game you will not win. Ref
      • If you’re looking for that, we probably aren’t the company for you. What we excel at are these three things.” Ref
      • Never tell someone something you can show them. Ref

        CHAPTER 4: The People Component: Surround Yourself with Good People

        core values, culture, and clear job expectations play a crucial role in achieving this alignment.

The Right People in the Right Seats: the right people are those who share your company’s core values and thrive in your organizational culture. They contribute to making the organization a better place to be. Core Values + People Analyzer = Right People: core values and the People Analyzer tool help identify the right people. This tool helps assess whether individuals within your organization align with the company’s core values. The Importance of the Right Seat: the “right seat” is a state where every employee operates within their area of greatest skill and passion. It means their roles align with their Unique Ability, leading to optimal performance. Clear Job Expectations and Structural Issues: unclear roles, responsibilities, and structural issues can hinder an organization’s progress. While a vague structure might have worked initially, it can become a barrier to growth. Creating a structure based on personal preferences rather than the business’s needs is a common mistake. Types of People Issues: 1. Having the right person in the wrong seat. 2. Having the wrong person in the right seat. Problematic when the individual doesn’t share the company’s core values, leading to long-term damage to the organization.

  • Dealing with “Wrong Person, Wrong Seat” Issues:
    • When a person is both in the wrong seat and is the wrong person (doesn’t share core values), the person must go. However, if there’s no alternative seat available, a difficult decision may need to be made for the greater good of the business.
    • Approach to “Wrong Person / Wrong Seat” Issues:
      • Strike One: Discuss issues, expectations, and give 30 days to correct.
      • Strike Two: If no improvement is seen, discuss performance again and provide another 30 days.
      • Strike Three: If there’s still no improvement, the person should leave the organization. Steps to Develop Core Values:
        1. STEP 1
    • After discovering your core values as a leadership team, “people-analyze” each other, as all EOS clients do. This will accomplish two objectives.
      1. First, it will validate your core values. If you’re all weak in one particular value, you should question whether or not it truly should be included.
      2. Second, you will see if someone on the leadership team is below the bar. While this tough situation does not come up often, you must follow the three-strike rule with this person as well. Most of the time, this person will improve his or her performance. Sometimes he or she will opt out.
      3. STEP 2
    • Have your leadership team people-analyze everyone in the organization and then have each manager share those results in one-on-one sessions. This will bring the tool to life throughout the organization.
      1. STEP 3
    • Use the People Analyzer in your quarterly performance reviews with all team members.
    • Let them analyze you as well. Don’t be afraid to put your money where your mouth is.
      1. STEP 4
    • If your leadership team is struggling with a personnel problem, run the person through the People Analyzer. This will give you a clear perspective on whether it’s a right-person issue. If it is, there is nothing more to discuss and you now know how to solve it.
    • If it isn’t, and it might be the person’s seat, don’t worry—we’ll cover that next The GWC Method:
  • Get it: “Get it” simply means that they truly understand their role, the culture, the systems, the pace, and how the job comes together.
  • Want it: means they genuinely like the job. They understand the role, and they want to do it based on fair compensation and the responsibility.
  • Capacity to do it: Capacity means having the time as well as the mental, physical, and emotional capacity to do a job well.

    • A “no” on any of these three means it’s not the right seat for the person, Ref
    • You must not fool yourself on this point. You can occasionally turn a “no” into a “yes” if you’re willing to invest the time and money it takes to elevate a person. Ref

Maintaining the Right Seat:: warning against stretching an individual too thin, causing them to occupy two seats. Balancing work and maintaining the right seat is essential for overall productivity and success. The Scalable Accountability Chart:: recommends that an Accountability Chart should replace the traditional organizational chart, making it a scalable tool to illustrate the organizational structure. Methodical Approach to Personnel Changes: any personnel changes should follow a methodical approach and ensure that the leadership team is aligned.

Not everyone can keep up with organizational growth, and retaining people solely because you like them can be detrimental to the company and its employees. Quick Check for Your Organization:

  1. Is this the right structure to get us to the next level?
  2. Are all of the right people in the right seats?
  3. Does everyone have enough time to do the job well?

    Highlights

    • The right people are the ones who share your company’s core values. They fit and thrive in your culture.
    • They are people you enjoy being around and who make your organization a better place to be. Ref
    • Core Values + People Analyzer = Right People Ref
    • The right seat means that each of your employees is operating within his or her area of greatest skill and passion inside your organization and that the roles and responsibilities expected of each employee fit with his or her Unique Ability®. Ref
    • One of the obstacles in gaining traction and achieving your vision is that roles, responsibilities, expectations, and job descriptions are unclear due to structural issues. A hazy structure may have gotten you to where you are, but it will not take you any further. A common mistake entails creating a structure to accommodate people you like or don’t want to lose. Ref
    • Three types of issues regarding your people.
    1. The first is having the right person in the wrong seat.
    2. The second is having the wrong person in the right seat. Ref
      • What makes this person the wrong person is that he or she doesn’t share your core values. While this obstacle may seem like something you can live with in the short term, that person is killing your organization in the long run. He or she is chipping away at what you’re trying to build, in little ways that, most of the time, you don’t even see. It’s that wry comment in the hallway, the dirty look behind your back, and the dissension that this person spreads. Ref
    3. third type of people issue, and that is wrong person, wrong seat. The solution is obvious: That person must go. Ref
      • the problem is solved once you move this person. Unfortunately, sometimes there is no seat available. In this case, you have to make a very difficult choice. You have to make decisions for the greater good of the business, and you don’t have the luxury of keeping people around simply because you like them. If this is the case, you must let them go. Sugggested intervention for right person, wrong seat. Ref
Good to Great Book recommendation Ref Unique Ability Book recommendation Ref

Approach to Wrong Person / Wrong Seat

  • Strike One: Discuss the issues and your expectations with the person, and give him or her 30 days to correct the problem. Ref
  • Strike Two: If you don’t see improvement, discuss his or her performance again and give him or her another 30 days. Ref
  • Strike Three: If you still don’t see improvement, he or she is not going to change and must go. Ref

    Developing your core values

    STEP 1

  • After discovering your core values as a leadership team, “people-analyze” each other, as all EOS clients do. This will accomplish two objectives.
    1. First, it will validate your core values. If you’re all weak in one particular value, you should question whether or not it truly should be included.
    2. Second, you will see if someone on the leadership team is below the bar. While this tough situation does not come up often, you must follow the three-strike rule with this person as well. Most of the time, this person will improve his or her performance. Sometimes he or she will opt out. STEP 2
  • Have your leadership team people-analyze everyone in the organization and then have each manager share those results in one-on-one sessions. This will bring the tool to life throughout the organization. STEP 3
  • Use the People Analyzer in your quarterly performance reviews with all team members.
  • Let them analyze you as well. Don’t be afraid to put your money where your mouth is. STEP 4
  • If your leadership team is struggling with a personnel problem, run the person through the People Analyzer. This will give you a clear perspective on whether it’s a right-person issue. If it is, there is nothing more to discuss and you now know how to solve it.
  • If it isn’t, and it might be the person’s seat, don’t worry—we’ll cover that next Ref

    The GWC Method

    Get it

  • You’ve seen people who get it and people who don’t. “Get it” simply means that they truly understand their role, the culture, the systems, the pace, and how the job comes together. Ref Want it
  • This means they genuinely like the job. They understand the role, and they want to do it based on fair compensation and the responsibility. Ref Capacity to do it
  • Capacity means having the time as well as the mental, physical, and emotional capacity to do a job well. Ref
  • ONE NAME, TWO SEATS: You can have one name in two seats, just not two names in one seat Ref
  • When the amount of work requires more than 100 percent to do the job well, say 120 percent, something has to give. This person needs to delegate and elevate the extra 20 percent because he or she is holding the organization back and hitting the ceiling.
  • In some cases, it’s time to move this person into one seat rather than the two he or she is occupying right now. If this person is in one seat, he or she needs to delegate more to other people, realize some efficiency, or eliminate some tasks altogether Ref
  • 100 percent represents the amount of time each person is willing to work and still maintain balance. For some people, it’s 40 hours per week, and for others, it’s 70 hours. Ref
  • When you delegate and elevate, it’s vital that you have the right person in the right seat. Ref
  • The Accountability Chart becomes scalable. Where multiple people have the same job, you simply put the number of people in that function rather than adding multiple new boxes. Ref
  • existing organizational chart. Your newly created Accountability Chart should replace it and become the tool you use to illustrate the organizational structure. Ref
  • Take a methodical approach to personnel changes, making sure that everyone on the leadership team is on the same page and then moving forward step by step. This doesn’t give you an out. It just means that you can’t put the company in a vulnerable position. You still have to make the change. Ref
  • Keep two important points in mind:
    1. Be careful what you wish for because you’ll get it. If you want to grow, you have to understand that not everyone is going to be able to keep up and remain in the same seat forever.
    2. Keeping people around just because you like them is destructive. You’re doing a disservice to the company, to everyone in it, and to the person. People must add value. I realize this may sound cold, but to the degree people are in the right seats, everyone is happier, especially them. Ref Quick Check:
      1. Is this the right structure to get us to the next level?
      2. Are all of the right people in the right seats?
      3. Does everyone have enough time to do the job well? Ref

        CHAPTER 5: The Data Component: Safety in Numbers

  • the author emphasizes the importance of using data and numbers to manage and improve a business. Here’s an organized summary of the key points from the chapter, using your highlighted quotes:
    1. Measurement Leads to Improvement: The chapter starts by highlighting the old business maxim that suggests anything measured and watched tends to improve. This sets the stage for the importance of data in managing a business.
    2. Keep It Simple: focus on a manageable number of key metrics. As a rule of thumb, aim for five to fifteen key numbers, but simpler is often better. Too much information can be overwhelming, so prioritize the most critical metrics.
    3. Weekly Activity-Based Numbers: The numbers you track in your Scorecard should be weekly, activity-based metrics. These are more specific and actionable than high-level financial numbers typically found in a profit and loss statement.
    4. Proactive Tool: The Scorecard serves as a proactive tool that helps you anticipate and address problems before they become significant issues. It’s about red-flagging categories that are off track, ensuring that you’re alerted to potential problems early on.
    5. Driving Accountability: what gets measured gets done. When everyone has a single meaningful, manageable number to guide them in their work, it promotes accountability throughout the organization.
    6. Clarity, Commitment, and Competition: Numbers cut through subjective communication between managers and their direct reports, creating clarity and commitment. They also introduce an element of competition that can further motivate teams.
    7. Results and Teamwork: Tracking numbers helps produce results by driving performance improvement. Additionally, it fosters teamwork and collaboration as everyone works towards common goals and understands their individual contributions to the overall success of the organization.
    8. Problem-Solving: With data at your disposal, you can solve problems more efficiently. Numbers provide clear insights into where issues may be arising, allowing you to take swift corrective actions.

      Highlights

  • According to an old business maxim, anything that is measured and watched is improved. Ref
  • As a rule of thumb, you should end up with five to 15 numbers—hopefully closer to five. There is such a thing as too much information, so keep it simple. Once you’ve identified all the categories, you then plug them into your Scorecard template. Ref
  • person who must deliver that weekly number to the organization, not the person who simply enters the number. Ref
  • The numbers in the Scorecard should be weekly activity-based numbers, not the type of high-level numbers you see in a profit and loss statement Ref
  • The Scorecard is much more of a proactive tool, helping you to anticipate problems before they actually happen. Ref
  • red-flagging categories that are off track. Red-flagging occurs when one of your numbers does not hit or exceed the goal for the week. Ref
  • What gets measured gets done. Complete mastery of your Data Component is achieved when you boil the organization’s numbers down to the point where everyone has a single meaningful, manageable number to guide them in their work. Ref
  • Numbers cut through murky subjective communication between manager and direct reports. Ref
  • Numbers create accountability. Ref
  • Accountable people appreciate numbers. Ref*10/31/23, 1:21 AM**
  • Numbers create clarity and commitment. Ref
  • Numbers create competition. Ref
  • Numbers produce results. Ref
  • Numbers create teamwork. Ref
  • You solve problems faster. Ref

    CHAPTER 6: The Issues Component: Decide!

    Normalcy of Issues: It’s normal for organizations to have issues. Acknowledging their existence without viewing them as negative or a sign of weakness is crucial for progress. Encouraging Openness: Creating a workplace where people feel comfortable calling out issues hindering the company’s vision is a vital first step in issue resolution. Open communication is essential for identifying and addressing issues effectively. Different Levels of Issue Lists

    1. The Vision/Traction Organizer (V/TO) contains company issues that can be shelved beyond 90 days.
    2. The weekly leadership team Issues List focuses on relevant issues for the week and quarter that require high-level attention.
    3. Departmental Issues Lists handle local departmental issues for the week during departmental meetings. Issue Solving Process: The issue-solving process consists of three steps: Identify, Discuss, and Solve.
      • Identify: Clearly identifying the underlying issue is essential, as the stated problem is rarely the real issue.
      • Discuss: Once the issue is identified, it may not require extensive discussion if the solution is obvious.
      • Solve: The solution becomes an action item that goes on the To-Do List. When the action item is completed, the issue is resolved. The 10 Commandments of Solving Issues: Wickman provides ten guiding principles for effective issue resolution:
    4. Avoid Ruling by Consensus: Consensus management does not work.
    5. Don’t be a weenie: Have strong will when things get hard.
    6. Be Decisive: Decisiveness is key to implementing solutions.
    7. Avoid Relying on Secondhand Information: Gather information firsthand.
    8. Fight for the Greater Good: Prioritize the organization’s well-being.
    9. Don’t Try to Solve Every Issue: Focus on the most critical problems.
    10. Choose to Live with It, End It, or Change It: Take decisive action.
    11. Be Willing to Accept Short-Term Pain: Sometimes, solving issues can be challenging in the short term.
    12. Address What You Fear Most: Confront the most critical issues.
    13. Propose Solutions: Take the initiative to propose solutions to problems.

      Highlights

  • It’s normal to have issues. The sooner you can admit that you have them and not view that as negative thinking or some kind of a weakness, the faster you will move forward. Ref
  • A vital first step is creating a workplace where people feel comfortable calling out the issues that stand in the way of your vision. Ref
  • The Issues List in your Vision/Traction Organizer (V/TO). These are all company issues that can be shelved beyond 90 days. Ref
  • The weekly leadership team Issues List. The time frame on these items is much shorter. These are all of the relevant issues for this week and quarter that must be tackled at the highest level. These issues will be resolved in your weekly leadership team meetings. You should not be solving departmental issues. These will typically be more strategic in nature. Ref
  • The departmental Issues List. These issues are on a more local level. These include all the relevant departmental issues for the week that must be tackled during the weekly departmental meetings. Ref
  • The Issues Solving Track consists of three steps:
    1. Identify
    2. Discuss
    3. Solve Ref
  • Clearly identify the real issue, because the stated problem is rarely the real one.
  • The underlying issue is always a few layers down. Ref
  • The task of clearly identifying an issue enables you to stay focused on the issue at hand and avoid tangents. Once the issue is clearly identified, don’t be afraid to suggest a solution. Sometimes you don’t have to spend much time in the discussion step, because the issue is so clear and the solution is so obvious. Ref
  • when the discussion starts to become redundant, it’s time to move to Step 3. Ref
    Tangent:Diverging from an original purpose or course; see irrelevant Ref

  • The solve step is a conclusion or solution that usually becomes an action item for someone to do. The item ends up on the To-Do List, and when the action item is completed, the issue goes away forever. Ref
  • THE 10 COMMANDMENTS OF SOLVING ISSUES
    1. Thou Shalt Not Rule by Consensus Ref
      • Consensus management does not work, period. Ref
    2. Thou Shalt Not Be a Weenie
      • The solution will always be simple; it’s just not always easy to implement. You must have strong will, have firm resolve, and be willing to make the tough decision. Ref
    3. Thou Shalt Be Decisive Ref
    4. Thou Shalt Not Rely on Secondhand Information Ref
    5. Thou Shalt Fight for the Greater Good Ref
    6. Thou Shalt Not Try to Solve Them All Ref
    7. Thou Shalt Live with It, End It, or Change It Ref
    8. Thou Shalt Choose Short-Term Pain and Suffering Ref
    9. Thou Shalt Enter the Danger
      • The issue that you fear the most is the one you most need to discuss and resolve. Ref
    10. Thou Shalt Take a Shot
      • Taking a shot means that you should propose a solution Ref

        CHAPTER 7: The Process Component: Finding Your Way

        Consistency as a Foundation: nothing can be fine-tuned or improved until it’s first consistent. Consistency is the foundation for effective operations and growth within an organization. Core Processes Define the System: The core processes of an organization are its lifeblood. The way these processes work together is what defines the unique system of an organization. Understanding and optimizing these core processes are crucial. Continuous Improvement: organizations should constantly seek ways to improve their core processes. This includes simplifying them, applying technology where necessary, and, most importantly, ensuring that these processes are consistent throughout the organization. Value of Process: many business owners complain about a lack of control or freedom while undervaluing the importance of well-defined processes. Processes provide the structure and consistency that can lead to increased control and freedom. Two Major Steps to Systemize

  • Document the core processes: This involves thoroughly documenting what happens within each core process.
  • Ensure they are followed: Once documented, it’s essential to ensure that these processes are followed by all members of the organization. Three Stages in Documenting Your Way:
  • Identify core processes: First, identify the essential core processes that drive the organization.
  • Break down and document: For each core process, break down what happens and thoroughly document it.
  • Compile information: Compile all the documented processes into a single package that can be accessed and understood by everyone in the organization. “Follow By All” Action Steps
  • Create a visual representation of the organization’s core processes (Circle of Life).
  • Share the documented processes with the entire company, potentially during a company meeting.
  • Retrain employees to ensure they understand and can follow the processes.
  • Manage and hold individuals accountable to ensure that the processes are consistently followed throughout the organization.

    Highlights

  • Nothing can be fine-tuned until it’s first consistent. Ref
  • A typical organization operates through a handful of core processes. How these processes work together is its unique system. Ref
  • discover different ways to improve upon your processes, simplify them, apply technology to them, and, most important of all, make them consistent throughout your organization. Ref
  • Countless business owners complain about their lack of control or freedom and yet, in the same breath, discount the value of process. Ref
  • To systemize your organization through your core processes, you must take two major steps. First, you have to document the core processes. Second, you have to ensure that they are followed by all. Ref
  • There are three stages in documenting your Way. First, identify your core processes. Then break down what happens in each one and document it. Finally, compile the information into a single package for everyone in your company. Ref
  • “FOLLOWED BY ALL” ACTION STEPS
    1. Create your Circle of Life visual.
    2. Schedule a company meeting to share your Way or share it at your next quarterly company meeting.
    3. Retrain everyone.
    4. Manage your people to follow the processes. Ref

      CHAPTER 8: The Traction Component

      The Quest for Accountability and Discipline: creating accountability and discipline is often the greatest weakness in most organizations. He emphasizes that gaining traction means turning your vision into a reality. The “Rocks” Concept:

  • After your vision is clear, you’ll set better priorities known as “Rocks.” What you call these priorities doesn’t matter, but they are often referred to as “Rocks.”
  • Stephen Covey’s book “First Things First” to stress the importance of focusing on essential priorities for success. He also suggests that having fewer, critical priorities is more effective. Establishing Your Rocks:
    1. Review the Vision/Traction Organizer (V/TO) to ensure alignment among the leadership team.
    2. List everything that must be accomplished in the next 90 days.
    3. Discuss, debate, and determine the most crucial priorities for the company.
    4. Set due dates for these “Rocks” and ensure clear objectives.
    5. Assign a single owner for each “Rock” within the leadership team.
    6. Leadership team members carry forward any company “Rocks” they own and create their own individual “Rocks.”
    7. Create a “Rock Sheet” to track and manage these priorities.
    8. Share the company “Rocks” with the entire organization. Avoiding Pitfalls and Traps:
  • The importance of the quality of your “Rocks” for effective results (“Garbage in, garbage out”).
  • The need for two quarters to master the “Rocks” concept.
  • Ensuring full commitment to “Rocks” every quarter to avoid “commitment fizzle.”
  • Restricting the number of “Rocks” assigned to individuals outside the leadership team.
  • The significance of continuous quarterly alignment to prevent organizational fragmentation and loss of focus. The EOS Quarterly Meeting Pulse: A key part of the process that involves the leadership team. This off-site, eight-hour meeting occurs every 90 days and requires prework with the completion of the Vision/Traction Organizer (V/TO).

    Highlights

  • The ability to create accountability and discipline, and then execute, is the area of greatest weakness in most organizations. Ref
  • Gaining traction means making your vision a reality. Ref
  • Most leaders know that bringing discipline and accountability to the organization will make people a little uncomfortable. That’s an inevitable part of creating traction. Ref
  • Once your vision is clear, you will set better Rocks. Setting these priorities becomes simple. Ref
  • By the way, it doesn’t matter what you call these priorities; however, most companies really like calling them Rocks Ref
  • analogy in Stephen Covey’s book First Things First. Ref
  • Less is always better, and a few priorities are better than many. Ref

    ESTABLISHING YOUR ROCKS

    STEP 1

  • After reviewing your V/TO and getting on the same page, your leadership team lists everything on the whiteboard that has to be accomplished in the next 90 days. Ref STEP 2
  • With that list of 10 to 20 items in front of you, discuss, debate, and determine the most important priorities for the company in the next 90 days. Ref STEP 3
  • Once you’ve narrowed your list, set the date that the Rocks are due. This is typically by the end of the quarter (i.e., March 31, June 30, September 30, and December 31).
  • Now define each one by making sure the objectives are clear. This is vital. Ref STEP 4
  • Assign who owns each Rock. This is vital for clear accountability. Each of the three to seven company Rocks must be owned by one and only one person on the leadership team. Ref STEP 5
  • Once the company Rocks are set, the members of the leadership team each set their own Rocks. They first carry forward any company Rocks that they own to their individual list of Rocks and then come up with their most important three to seven. Ref STEP 6
  • When all that great work is done, you then create what is called the Rock Sheet Ref STEP 7
  • Share the company Rocks with the entire organization. Ref STEP 8
  • Have each department set their Rocks as a team. Just as the leadership team sets their Rocks, each department team follows the exact same process to set theirs as well. Ref

    ROCK TRAPS AND PITFALLS

    Ref

  • Garbage in, garbage out. Ref
  • It takes two quarters to master Rocks Ref
  • Commitment fizzle. Make sure that when rolling out Rocks, you’re fully committed to them every quarter. Ref
  • Too many Rocks. Don’t give people outside of the leadership team more than three Rocks. [Ref](yomu://content/annotation/5CDD5D97-15C3-4246-8B45-75D1057FE493
  • If you don’t continue to align quarterly, your organization will fragment to the point that you will get far off track, you will start to lose great people, you will lose sight of your vision, and you will end up right back where you started—in chaos. Ref
    • 90 days is about as long as a human being can stay focused Ref

      THE EOS QUARTERLY MEETING PULSE

      Who: The leadership team Where: Offsite Duration: Eight hours Frequency: Every 90 days Prework: Vision/Traction Organizer complete Everyone brings his or her issues and proposed priorities Ref

THE QUARTERLY MEETING AGENDA

  • Segue
  • Review previous quarter
  • Review the V/TO
  • Establish next quarter’s Rocks
  • Tackle key issues
  • Next steps
  • Conclude Ref