EOS: What It Is and Why You Need It
The real magic is when next week's activities lead to your 10-year vision.
You’ve heard about this “EOS” thing, but you’re unsure if it’s right for your business or organization. This post gives a peek into a business (kitchen & bath CRATE) that’s been running EOS since Q3 2018. Let’s begin at the beginning:
In 2018, I heard about this odd-sounding acronym, “EOS.” Quite frankly, I can’t even remember how I heard about it. It could have been a podcast, a book, or a referral from an EO friend, who knows! Regardless, I looked into it, and 4+ years later, it’s one of the best decisions I’ve ever made.
What is EOS?
EOS stands for Entrepreneurial Operating System. And while the term “operating system” sounds odd when applying it to a human organization, that’s precisely what it is: a system that maximizes the operations of your business or organization.
EOS is described in the book Traction by the developer of EOS, Gino Wickman. This is why you hear “EOS” and “Traction” used interchangeably. Additionally, the Traction library consists of seven books that dive further into the EOS system. For example, Rocket Fuel is about the relationship between two key EOS roles: the Integrator and the Visionary.
But What Does EOS Do?
OK, so I explained what it is, but you’re probably wondering what it does for an organization.
At its core, EOS ties an organization’s 10-year target to this week’s activity.
Wait, what?
Let me dive a bit deeper.
Most leaders of organizations have at least a general sense of where they want to be in 10 years. Sometimes this target is formalized in some fashion: on a website or hanging in the break room.
And most organizations work hard to serve their customers, clients, participants, etc. They show up and do the work nearly every workday.
But the ultimate barometer of forward momentum is the percentage of each team member’s time spent on activities that support the 10-year goal. And that, I find, is where the real struggle lies. We look up 10 years later and are not much closer to our 10-year target than we were 10 years ago!
Additionally, the EOS framework:
Establishes and memorializes your organization’s Core Values
Makes sure the right people are in the right seat on the proverbial bus
Creates a culture of accountability
Maximizes meeting productivity via the Level 10 Meeting structure
Focuses your marketing message (yes, even non-profits have a marketing message, they just call it something else)
Helps in hiring top performers: you can show them exactly where your team is headed and their role should they sign up
Our Results
Our first quarter running EOS at kitchen & bath CRATE was Q3 2018. Since then, here are our results:
16% annual revenue growth, including 2020, in which we were shut down for nearly two months and had minimal revenue for an additional two months.
Slowly, the right people jumped on the bus, and a few folks who did not align with our core values got off the bus. The latter is very common when implementing EOS.
Our net profit (as a percentage of revenue) rose 4-fold from the 2016 & 2017 averages.
The EOS structure, via the leadership team, has made it possible for me to step back from the company’s day-to-day operation, allowing me to focus on my next adventure.
Next week I’ll write about how one might implement EOS in their business or organization.
Wishing you a healthy and prosperous 2023!
Books of Note: I just finished one of David Sedaris’ earliest works, Barrel Fever. I enjoyed it, but it was interesting to see how far he came with his writing in the subsequent decades, leading to masterpieces like Me Talk Pretty One Day, Dress Your Family in Corduroy and Denim, and Let’s Explore Diabetes With Owls. I highly recommend the audio version of any of the last three if you’re looking for comedy gold.
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