What the Heck is EOS®: Summary, Review and Core Concepts
If you’ve never heard of EOS® -- the Entrepreneurial Operating System® -- before, obviously, a book titled “What the heck is EOS®?” might be an excellent place to start your learning journey. And in this case, it is. The book, co-authored by Gino Wickman and Tom Bouwer, two of the major business minds associated with the EOS® model, is designed to give you a 35,000-foot view of the whole ecosystem. For example:
While EOS® works in companies of all sizes, the “sweet spot” is companies of about 10-250 employees that are open-minded and growth-oriented
There are 50,000+ global companies currently using EOS®
Because we live in a very tech-focused time, you can think of the words “operating system” solely in the context of what you use to do work on a computer. But many entrepreneurs need the same set of rules that, say, Google Drive has. Without those rules, they waste time when trying to meet more effectively, communicate better, define priorities for employees, etc. So the book starts with an overview of what EOS® is and how it can help businesses. It then goes into detail about the six critical components of EOS®, which are:
Vision- The authors explain that every business needs a clear vision in order to be successful. Without a vision, businesses will lack direction and will not be able to achieve their goals.
People - businesses need to have the right people in place in order to be successful. Without the right people, businesses will become inefficient.
Data - businesses need to track their data in order to make informed decisions. Without data, businesses will not be able to make informed decisions that make sense for the company’s goals.
Issues - businesses need to identify and solve issues in order to be successful.
Process - businesses need to have clear and efficient processes in place.
Traction® - businesses need to generate Traction® to help obtain their goals.
The book goes through each component one by one. There is then a specific EOS® tool in each case that helps you improve each core component. Let’s use “vision” as an example here. In this book, one customer support rep from Houston mentions that he was constantly being told different things by his direct manager and the company owner. That would imply a less-than-coordinated “vision” of what’s happening at the company. “We were running around in circles and making the same mistakes,” he admits. So when that company used EOS®, they used a tool called “Vision/Traction Organizer™,” or V/TO. V/TO is comprised of eight questions:
What are your core values?
What’s your core focus?
What’s your 10-year target?
What’s your marketing strategy?
What’s your three-year picture?
What’s your 1-year plan?
What are your rocks?
What are your issues?
EOS® companies work through the V/TO questions to better understand their vision and align employees with the decision-making levels. That’s exactly what happened with the customer service rep in Houston. After his company used EOS®, he reported that day-to-day work efforts were much more “aligned” and that people “aren’t repeating the same mistakes.” The company grew.
Summary: The Point of EOS® at the Broadest Level:
EOS® applies systems and processes to ideas that we too quickly lose focus around, i.e., communication, alignment, and employee engagement, especially as our focus is more financial and product in growth stages. By providing a system to focus on these areas we often lose focus on, EOS® is extremely helpful towards ensuring that growth remains consistent, as opposed to being the result of 2-3 good quarters. A similar area of importance in this book is “rocks.”
Rocks are what you might imagine -- the big things you need to focus on in a quarter, a year, etc. For example, one pharmacy client mentioned in this book needs to fill all prescriptions by 6:30 pm each day. They keep missing that target. That becomes “a rock.” Now consider this: remember above, when we mentioned 10-250 is the optimal size for EOS®? Imagine a 50-person company. Imagine everyone has two “rocks” per quarter. That’s 100 rocks per quarter or 400 per year. If even 75% of “rocks” are achieved, that’s 300 major employee goals checked off in a year simply by narrowing the focus and bringing systems in around that focus. Three hundred employee goals will drive forward business almost without question.
The value of this book is in seeing the simplicity of the systems and processes and where the whole ecosystem could take your business. If you know you need to reinvent around certain areas, definitely grab this and give it a whirl. It’s a quick read -- about 150 pages --, and the appendixes have questions to ask yourself and your manager about aspects of work. It’s a valuable cheat sheet.
Who Can Benefit from Reading What the Heck is EOS®, and Who is this book for?
If you are a business owner or leader looking for a proven process to help you grow and improve your business or help when it comes to managing EOS®, then What the Heck is EOS®? is the book for you. Written by the creator of the EOS® Process®, Gino Wickman, this book will show you how to implement the EOS® Process® in your own business.
The EOS® Process® has helped thousands of businesses achieve their goals, and it can help yours too. If you are struggling to get your business on track or simply want to take it to the next level, then What the Heck is EOS®? is a must-read.
Are You Ready to Take Your Business to the Next Level? Let’s Get Started.
