If you’re reading the blog, it’s likely that your company is either running or contemplating running on the Entrepreneurial Operating System (EOS). In other words – you’re running (or soon to be running) your entire business on EOS.
To fully implement EOS into your organisation, you’ll need every employee to become familiar with a number of terms. To help with this, we’ve put together a handy list below.
Entrepreneurial Operating System (EOS): A set of proven, practical tools that systemises your organisation. It brings consistency to the way in which people meet, solve problems, plan, prioritise, follow and create process, communicate, measure, structure, clarify roles, lead and manage.
The EOS Model: The six key components make up the way in which every business consists of, as per the EOS model. The six key components are Vision, People, Data, Issues, Process, Traction. In implementing the Entrepreneurial Operating System (EOS), these are managed and strengthened to create a healthy and well-run business.
Vision Component: Strengthening the Vision Component is getting absolutely everybody in your organisation 100% on the same page with where you’re going, and how you’re going to get there.
People Component: Strengthening the People Component is simply making sure that the right person is in the right seat, at all times.
Data Component: Ensuring everybody in the business has an exact pulse on where things are, and when they’re off track. This is achieved by using a handful of simple metrics.
Issues Component: To strengthen the Issues Component, you will strengthen your organisation’s ability to identify issues, discuss them, and solve them forever.
Process Component: In order to strengthen the Process Component, you will use a series of tools to systemise your business by identifying and documenting the core processes that define the way that you operate.
Traction Component: Instilling discipline and accountability into the organisation.
Integrator: The Integrator is the leader of the leadership team (often the CEO/MD of the company – but not always). The integrator is the one who is beating the drum, cutting through the crap and harmoniously integrating other major functions. They have ultimate accountability for achieving results.
Scorecard: The Scorecard is an EOS tool that displays and tracks a handful of important metrics, giving you a pulse on the important things that are happening within the business.
Accountability Chart: This is different from a standard organisation chart, in that the Accountability Chart defines the correct structure for your business and clearly outlines who is accountable for what. It is not a representation of who line-manages who.
Rocks: These are the 3-7 most important things that you must achieve in the next 90 days, outside of BAU (business as usual). Typically, each person in the business will have 1-3 rocks per quarter, whilst members of the leadership team will have 3-7 rocks per quarter.
Measurables: Every single person in your business should “have a number.” This number is considered that person’s measurable. This is something that they do to add value to the business and is measured on a daily basis.
V/TO (Vision/Traction Organiser): The V/TO is a simple two-page document that helps your leadership team define, document, agree on and share the company vision.
10-Year Target: Even though it’s called a 10-year target, this is a long-range goal ranging from five to twenty years. It should be a large, energising goal for the organisation.
Core Focus: Your Core Focus defines exactly what you do as a business. It helps you avoid distraction and “shiny-stuff” and ensures you are laser-focused on the areas where you actually excel as a business.
Core Values: Your Core Values are a set of guiding principles that define your companies culture and sets expectations as to the behavior that you expect from one another. They help you determine if people fit your culture, and will highlight the ones that don’t, and they also help you attract like-minded individuals to your team.
Marketing Strategy: A simple definition of who your ideal customer is, and how you should communicate to them. It helps provide complete clarity for your sales and marketing efforts.
3-Year Picture: You’ve already set your long term target above, using the 10-Year target concept. The 3-Year Picture puts a line in the sand for you to get to first with a definition of what your company will look like, what it’ll feel like, and what it’ll be like three years from now. It creates a powerful image of the future and ensures everybody is working together towards the same vision.
1-Year Plan: The 1-Year Plan defines your objectives for the year. Collaboratively, the leadership team will identify and crystalise the revenue target, the profit target, and measurables, and additionally your top three to seven goals for the year.
SMART: You’ve probably heard this one before – it stands for Specific, Measureable, Attainable, Realistic and Timely. With EOS, we’ll ensure that all goals and Rocks are SMART so that the team understands exactly what “done” looks like.
IDS: Alternatively known as the Issues Solving Track, IDS is a simple process used to Identify, Discuss and Solve issues on a weekly basis.
Level 10 Meetings: A weekly meeting that happens at the same time, every week, with the same agenda. It’s designed to help you stay focused on what’s actually important and help you solve issues effectively, whilst keeping your team in the loop.
People Analyzer: Utilising the Core Values and Accountability Chart, the People Analyzer helps your organisation identify if they have the Right People in the Right Seats.
Visionary: Not all businesses have a Visionary – sometimes just an Integrator but, in a scenario where you have both – a Visionary is a strategic thinker who’s great at big relationships, new ideas and the culture of your business.
Organizational Checkup: A quick, 20-question survey that helps measures your companies strength in each of the six key components.