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EOS GUIDE

Table of contents
Table of contents

What is EOS ? #

EOS is an abbreviation for the phrase “Entrepreneurial Operating System” as its “Operating System”, was founded by Mr. Gino Wickman, an American entrepreneur in 2008.

As a comprehensive operational model designed for businesses from 10 to 250 employees, EOS operates based on 6 key components: Vision, People, Data, Issues, Process, and Traction. It is illustrated as follows:

The goal of EOS is to use thinking tools to make the 6 Components equally strong and achieve at least 80%, aiming to help businesses achieve three things:

  1. Vision: Clarifying and strengthening the organization’s vision.
  2. Traction: Enhancing execution and accountability to ensure goals are met.
  3. A Healthy Team: Building a strong, cohesive, and high-performing team within the organization.

***Note: Please do the “Business Health Assessment” to know which components your business is currently Strong and Weak in, and what percentage of the current situation is in order to have an improvement goal.

Vision Component #

To foster a healthy Vision component, EOS provides the “Vision/Traction Organizer”, often abbreviated as “V/TO”. This tool helps everyone within the organization understand the long-term and short-term goals of the business.

The V/TO requires the entire organization, from the owner to every member, to have a unified response to eight key questions:

  1. What are the Core Values of the business?
  2. What is the business’s Core focus?
  3. What is the 10-Year Target for the business?
  4. What is the Marketing Strategy?
  5. What does the 3-Year Picture of the business look like?
  6. What is the 1-Year Plan?
  7. What are the Quarterly Rocks (top priorities)?
  8. What Long-Term Issues is the business facing?

People Component #

The two tools to strengthen this component include the Accountability Chart and the People Analyzer.

 

Accountability Chart

This is an “enhanced” organizational chart because, in addition to depicting a “right structure” by function for the business, it also clarifies the “five key roles and responsibilities” that the business needs, particularly highlighting the “person primarily accountable” for that function.

With this tool, everyone can understand who is doing what, responsible for what, and who reports to whom.

People Analyzer

This is a simple tool that helps us align Core Values and the Accountability Chart, assisting you in identifying who is the Right person – Right seat.

Right people

These are individuals who align with the company’s culture. They act and work based on the Corporate’s Core Values.Evaluation criteria include:

  • (+): This person consistently lives and embodies the Core Values during most of the time.
  • (+/-): Occasionally, they “may” demonstrate the values, but at times, they “may not.”
  • (-): They consistently do not live by the Core Values most of the time.

Right seat

It means that they are in a position where they can perform their roles to the best of their abilities and make valuable contributions to the organization. It’s where the nature of the job allows them to utilize and leverage their special capabilities.

By using the roles on the Responsibility Chart, individuals are assessed based on the following three criteria:

    • GET IT: Do they understand the job? → YES / NO
    • WANT JOB: Do they want this job? YES / NO
    • CAPACITY: Do they have enough capacity to do this job? YES / NO

Based on the framework above, each business will establish its own ”standards” to identify suitable personnel. A People Analyzer (Personnel Identification) sheet will look like this:

Data Component #

To strengthen the Data component, we need two tools: Scorecard and Measurable.

Scorecard

  • Is a collection of 5 to 15 indicators that can indicate whether your business is operating effectively within a week, and the leadership team will review it in weekly meetings.
  • It can help the leadership team stay in tune with the business, ensure that everything is under control, and identify issues for timely action.
  • Each department or team also has 3 to 5 Scorecard indicators specific to their department, derived from the company-level Scorecard.

Measurable

  • These are the names of the indicators that the business/department wants to track weekly

A complete Scorecard should have four main columns: Owner, Measurable, Goal per week, and 13 Weeks in a quarter:

Issues Component #

This is a list of anything that is unaddressed and requires discussion; it can be a problem, an opportunity, or a better way to do things.

EOS provides two tools to strengthen this component:

  • Issue List: Allows everyone to openly and honestly list issues.
  • Issue Solving Track: A formula that helps prioritize and permanently resolve issues.

Process Component #

The Process component creates consistency in the operational activities of the business, including the steps taken to create a product or service from A to Z.

The 3-Step Process helps simplify unnecessary tasks, identifies core processes that consist of key steps. The 3-step process is described as follows:

  • Step 1 – Identify: Identify the core processes of the business and name them.For example: Marketing Process, Sales Process, Operations Process, Finance-HR Process, and so on.
  • Step 2 – Document & Simplify the process:
    • For each core process identified in Step 1, the head of the department should outline the key steps.
    • At each key step, break down 1 to 5 sub-steps and assign responsibilities to clarify how the key step is performed.
  • Step 3 – Package
    • Compile all the core processes documented in Step 2 into a manual on how to operate the business and store it.

By following this mindset, your company’s entire process will be compact, simple for everyone to follow to, and it can easily be scaled up or down with the company’s development.

Traction Component #

Strengthening the Traction component is about creating discipline, execution, and accountability throughout the organization. It helps the business clarify and choose the right priorities, thereby generating traction from within the organization to achieve the Vision.

The EOS tools provided for this component include:

  • Rocks – Quarterly Priorities: These are the most important things the business must complete within 90 days to achieve the annual plan.
  • Level 10 Meeting (Weekly meeting): These meetings follow a schedule to efficiently gather the team for 90 minutes, monitor goal execution, address issues, and maintain strong connections:
    • Good News – 5 minutes
    • Scorecard – 5 minutes
    • Rocks – 5 minutes
    • Customer/Internal Headline – 5 minutes
    • To-do list – 5 minutes
    • Issue Solving – 5 minutes
    • Conclusion – 5 minutes

**Note: Read more about how to create Rocks HERE.

     **Read more about organizing and facilitate Weekly Meetings [HERE](<https://help.simplamo.com/en/get-started/steps/weekly-meeting>).**

Why EOS? #

Over 70,000 companies all over the world run on EOS.

The EOS toolbox provides a simple, comprehensive, and easily applicable for various levels within an organization.

  • EOS helps employees understand the structure of their business, where they can develop, gain knowledge in their roles, and achieve personal goals.
  • EOS assists leadership in conveying their vision and desires to the entire team. It helps businesses prioritize and address issues effectively to reach their ultimate goals. When a business has a team that understands, shares, and aligns with the vision, achieving it becomes more straightforward.
  • EOS helps businesses build a genuinely healthy and well-aligned human resource engine, with a clear corporate culture.

Differences of Accountability Chart #

An example of Accountability chart:

Rock and OKR #

Scorecard and KPI #

Key to success when run on EOS #

How to Start #

1. EOS Process

A typical business takes 12 to 18 months to master and become owner the EOS tools. You need to follow the steps below to ensure success.

  • Step 1 – 90 minute meeting: Meet with an EOS Implementer to thoroughly understand how EOS tools can support your business.
  • Step 2 – Focus Day: This could be understood as the Business Foundation Day. Organize a day with all members of the leadership team to collectively establish the necessary operational foundations by using 5 EOS tools: Accountability Chart, Quarterly Rocks, Scorecard, Weekly Meeting, Issue Solving Track.
  • Step 3 – Build/Review Vision:
    • The next step is to Organize a 2-day Vision Building session, outlining the specific destination, goals, and the path for the business for the 90-day, 1-year, 3-year, and 10-year journey (if you already have it in your hand, review, confirm, and gain consensus with your leadership team).
    • From the Vision, your company also has a tool for identifying the right people for the goal pursuit.
  • Step 4 – Organize Quarterly and Annual Pulsing Meetings: During the EOS implementation process, at the end of each quarter, you need to organize Quarterly Meeting, and at the end of the year, there will be 2 days of Annual Business Planning meetings following the EOS Agenda.

2. Leadership Team First – Department/Team Later:

In terms of implementation order:

  • The leadership team should be the first team to apply, especially the foundational tools: Accountability Chart, Quarterly Rocks, Scorecard, Weekly Meeting.
    • Become the front-runners, with the best understanding of EOS tools to become trainers, inspiration for employees, and capable of prioritizing and breaking down objectives.
    • The process for leadership to become proficient typically takes 1 to 3 months.
  • After that, each member of the leadership team will roll it out to their respective departments/teams.

What’s Necessary #

Embrace the knowledge

As you have noticed, the EOS mindset and tools may not be entirely new compared to what you already know. However, it simplifies and repackages complex knowledge that has been around for a long time into a practical toolbox.

If you apply these tools with an open mind, without comparisons, judgments of right and wrong, but simply embrace the differences and apply them to your work, it will yield surprising results for you and your business.

Especially in the first 18 months, we encourage you not to skip any phases. Each tool should be applied with pure knowledge, without mixing and matching with the knowledge you currently possess. Mixing them could lead to confusion.

Don’t Skip Meeting Pulse

In EOS, there are three main types of meetings:

  • Weekly Meeting – 90 minutes
    • To keep you informed about your business’s health
    • Review the execution of Rocks
    • Address urgent issues
    • Stay connected with your team
  • Quarterly Meeting – 1 day
    • Review the Vision
    • Set new Quarterly Priority Rocks
    • Address long-term issues
  • Annual Meeting – 2 days
    • Review the Vision
    • Strengthen team’s health
    • Set Annual goals and Quarterly Priority Rocks
    • Address long-term issues

For whatever reason, your company should absolutely not skip these three meeting pulse in order to reach your 10-year goal as quickly as possible.

Industries suitable for running EOS #

The answer is that EOS is suitable and effective for any business, regardless of the industry or field. As long as your current business has personnel, EOS can help you clarify, simplify, and achieve your Vision.