20 Jun The Simple Equation for Growth
Imagine creating a comprehensive and yet simple to understand business plan. Now imagine articulating it on a double-sided sheet of paper. Imagine your organization understands it, believes it, breathes it, and actually achieves it. Imagination or reality?
I was fortunate that this was my reality during the three years I ran a business with the Entrepreneurial Operating System (EOS), and in this post I share the foundation for getting there.
In my previous post I shared a simple formula: Vision without (-) Traction = Hallucination. The corollary to this is equation is:
Vision + Traction = Growth
Growth be it financial, increased market share, operational maturity, more cohesive teams, simply sleeping better at night — your definition of growth depends on your objective. But the sure thing is 1.) the combination of Vision and Traction achieve the results you want and 2.) a simple document called the Vision Traction/Organizer (VT/O) is the tool EOS companies use to achieve the results of this equation.
Making Vision + Traction Happen
The VT/O is a simple document used to create organizational clarity around your vision and the plan to get there. To the extent your leadership team can align on answers to the eight questions in the VT/O, you clearly articulate the vision and plan for the rest of the organization. As goes the leadership team, so goes the rest of the organization.
The eight questions/topics your leadership team must answer in unison to create a vision and the plan to gain traction toward it are:
- Core Values: Core values are not just a list of characteristics that appear on your website, lobby wall, or employee handbook. They must be a reflection of your culture. People that fit your core values fit your organization like a glove, and your core values sere as the litmus test to determine the right people for your organization.
- Core Focus: What is your purpose, cause, or passion? Why does your organization exist, and specifically what is it you do? This focuses the organization on what “to do” and also keeps the organization clear away from what “not-to-do”.
- 10-Year Target: What’s your big goal? Where is the organization headed? Without a clearly articulated destination you are sure not to arrive there.
- Marketing Strategy: Who is your audience and what is your message? Clarity in this area provides for laser focused marketing – ultimately increasing sales and revenues.
- 3 Year Picture: Creating a three year picture brings the 10 Year Target down to the ground to a period that is manageable. The goal is to get everyone’s “mind’s eye” seeing the same thing (measurables and descriptive characteristics), and in doing that you are much more likely to arrive there.
- 1 Year Plan: Define the target metrics for the organization in the next year and the top 3-5 priorities. If you only achieved 3-5 things in a given year, what would they need to be to deem the year a success? Less is more in this process!
- Rocks: People are challenged to stay focused for more than 90 days. Breaking One Year priorities into quarterly chunks (we call them “Rocks” – i.e., the top priorities for the organization) help increase the likelihood objectives are accomplished. Creating a quarterly pulse improves execution, accountability, and discipline.
- Issues List: The most successful organizations not only consistently identify their issues (we all have them) but they consistently solve them. It is critically important to create a prioritized parking lot of problems, obstacles, barriers, opportunities, etc., and knock them down as quickly as possible.
A Living, Breathing, Plan
As a Professional EOS Implementer I have the privilege to collaborate with leadership teams to crystallize their vision and business plan. And this is just where it begins.
The VT/O is a living document that is regularly reviewed and periodically updated as the organization and climate change. The VT/O is the source of truth that describes your plan for Vision + Traction, and if you use it in conjunction with the EOS process it will most surely = Growth.
- Download a free electronic copy of the first Chapter of Traction (the book the describes EOS)
- Purchase a Copy of the book “Traction“
- Request a Free 30 Minute Discovery Meeting from Josh Holtzman
About Josh Holtzman
Josh founded and grew a leading professional services firm, which he then sold to a national player, and together grew and sold the firm a second time to a global publicly traded IT services company.
Adopting EOS was a key turning point in Josh’s career as an entrepreneur. He is passionate about giving back to the entrepreneurial community by helping other entrepreneurial leaders strengthen their businesses using EOS.
If you would like to learn more about implementing EOS within your organization, contact Josh for a free discovery session.