By Mike Paton
To say my dear grandfather is a “serial planner” is something of an understatement. A high-school math teacher and slide-rule expert, his love of details, structure and discipline is legendary. Whenever he travels anywhere, friends and family receive copies of a detailed itinerary well in advance, carefully hand-printed on a pristine sheet of – you guessed it – graph paper.
As a wisecracking teen, I once asked Pop if he didn’t think all that planning was a waste of time.
“Haven’t you ever wanted to just point your car to the East and start driving?” I wondered.
“Sure I have,” he said. “But at my age driving isn’t as fun as you kids think it is. If I don’t know where I’m going and how I’m going to get there, how in Sam Hill will I know when I’ve arrived?”
Did I mention Pop was a really smart man? I could write thousands of articles and deliver hundreds of speeches and still fail to give business owners better advice than that.
You may recall that my first article briefly introduced readers to the Six Key Components™ of a well-run business - Vision, People, Data, Issues, Process, and Traction. In this piece I’d like to build on my grandfather’s advice and describe Vision in more detail. Put simply, a company’s vision is crystal clear when everyone in the organization knows where the company is going and how it’s going to get there. With everyone headed in the same direction, you will get more done and enjoy the ride.
This is hardly rocket science. But if almost everyone knows a clear vision is important, why do so few companies clearly articulate that vision and get everyone in the organization focused on making it a reality? Ask an entrepreneur why everyone on the team doesn’t seem to share a common vision and you’re likely to get one of four answers:
- “It’s not important”
- “We don’t have time”
- “Nobody else needs to know”
- “You’re wrong – we ABSOLUTELY share the same vision”
Entrepreneurs who don’t think vision is important or won’t spend time on it are more common than you may think. Uncertainty and risk are everywhere when you start a business. Early stage entrepreneurs who are successful without being certain where they’re going often come to believe that planning and strategy are a waste of time at best. They can also feel that being nimble and flexible are more important than having a clear plan.
Some leaders feel employees should row hard no matter where the boat is pointed. They find all this talk about vision symptomatic of the problem with generations X and Y. “When my boss gave me a job to do, I did it,” they think. While that may be true, it is also true that the winning teams from any generation are able to set aside their own needs to contribute to a larger goal. If you want commitment, accountability and discipline, you must have a clear and compelling vision that can be shared with everyone on your team.
The last answer is also quite common. “If my organization’s vision is clear to me,” the owner surmises, “It’s certainly clear to the people around me.” But they’re often wrong. In surveys our leadership teams complete before working with us to implement the Entrepreneurial Operating System® (EOS®), owners and CEOs often give the company much higher marks for clarity of vision than the other members of the leadership team. When we discuss these results in a session, the teams often acknowledge that the gap would be even larger if we surveyed the rank and file. Once your vision is clear, it’s imperative that you share it often – remember that people may have to hear things seven times to hear them for the first time.
Whatever the reason, not having a clear vision shared by everyone in your organization likely means you’re not performing at your best. If you’d like to get more from your business, work with your leadership team to craft a simple, clear vision for your organization. You don’t need a 3-month project to produce a 100-page strategic plan - our teams work together over no more than two days to answer 8 important questions on a two-page document called the Vision/Traction Organizer™.
Whatever method you use, what’s important is that everyone on the leadership team is 100% on the same page with where the company’s going and how it’s going to get there. Once you’re aligned at the top, you can share that vision with everyone in the organization and get them headed in the same direction, as well.
Henry Miller once said, “One's destination is never a place but rather a new way of looking at things.” Consider giving your company a new, clearer vision. Like my grandfather, when everyone is working together towards a common destination you will cover more ground, have more fun on your journey, and clearly know when you’ve arrived.
About the Author
Mike Paton has been helping entrepreneurs get more of what they want from their companies for more than 20 years. He works with owners and leadership teams to implement the Entrepreneurial Operating System® (EOS®), a proven process for clarifying, simplifying and achieving success in growth-oriented organizations. Learn more at www.eosprocess.com or contact Mike directly – mailto:mpaton@eosprocess.com..
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by Mike Paton
When you think of where you want to take your business 5-10 years from now, is the picture clear? Or are there challenges, obstacles and hardships that blur the image?
In 20 years of working with hundreds of business owners, I've met only a few who have a clear, unobstructed view of where they're going AND how they're going to get there. Most have trouble seeing that picture clearly because they're focused on one (or more) of the following ailments:
- Lack of control - over time, the market, or the company
- People - employees, customers, vendors, and partners just don't seem to listen, understand or follow through
- Profit - simply put, there's not enough of it
- Growth - the company just can't seem to break through and get to the next level.
- Magic Pills - that don't work. Dozens of remedies and quick fixes have come and gone; the wheels are still spinning
It doesn't have to be this way. Doing a few things differently will help you get a grip on your business, gain better traction, and eliminate all of your frustrations. To make the picture clearer, however, you must realize that the only thing you can really change is yourself.
Start by accepting responsibility for the world you've created. It's not the market; it's not your people; it's not your customers; it's you. When you achieve that shift in your thinking, you can then move forward to solve your problems and experience success. You can let go of your frustrations with things you can't control to focus 100% of your energy on creating the organization you imagine.
Once you accept responsibility, give yourself a three question test. Grade the company in these critical areas:
- Vision - Everyone in the company knows where we're going and exactly how we're going to get there
- Traction - Everyone is disciplined and accountable for making progress towards achieving the vision
- Healthy - the leadership team is open, honest, cohesive and functional
If you have to grade on the curve to earn a "B" average, it may be time to get some help. Unless your vision is crystal clear, your team is 100% on the same page - happy, healthy and working together towards achieving your vision - long-term success is probably just a mirage. Thankfully, bringing that picture into focus isn't very difficult.
The key is organizing the many moving parts of your business into a single, complete system - followed faithfully by everyone in the company - that efficiently delivers your product or service and delights your customers. You won't make that happen with silver bullets or magic pills designed to fix a small part of the larger problem.
The answer isn't easy, but it IS simple. Working with your team to become strong in the Six Key Components™ of a well-run business will clarify your vision, simplify the mission, and get everyone working together to achieve your vision. Look for more information about those components - Vision, People, Data, Issues, Process, and Traction - in future issues. For now, you can rest easier knowing that you've begun the process of developing a single, effective operating system for your business. A new way of life for you and your leadership team that will remove obstacles and frustrations, make everything start to work harmoniously, and bring that blurry picture of your ideal future into clear focus.
About the Author Mike Paton has been helping entrepreneurs get more of what they want from their companies for more than 20 years. He works with owners and leadership teams to implement the Entrepreneurial Operating System® (EOS®), a proven process for clarifying, simplifying and achieving success in growth-oriented organizations. Learn more at www.eosprocess.com or contact Mike directly - mpaton@eosprocess.com.
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By Gino Wickman
Never has there been a better time to be an entrepreneur. You may or may not agree with that statement, but it's true.
When you think about where you want to take your organization, do certain obstacles and barriers come to mind? After 18 years of working with hundreds of business owners and leaders from a broad variety of industries, I have discovered something about entrepreneurs. Most are frustrated by one or more of the following five ailments:
- Lack of control. You don't feel you have enough control over your time, the market, or your company. Instead of controlling the business, the business is controlling you.
- People. You are frustrated with your employees, customers, vendors, or partners. They don't seem to listen, understand you, or follow through with their commitments. You just can't seem to get everyone on the same page.
- Profit. Simply put, there's not enough of it.
- You've hit the ceiling. Growth has stopped. No matter what you do, you can't seem to break through and get to the next level. You feel stuck, overwhelmed, and unsure of what to do next.
- The magic pills didn't work. You've tried various strategies and quick-fix remedies. None have worked for long. As a result, your people have become numb to new initiatives. You're spinning your wheels, and you need traction to move again.
It's hard to be excited about being an entrepreneur when you aren't succeeding at it, but it doesn't have to be this way. You can get a total grip on your business, gain better traction, and eliminate all of your frustrations. It starts with you taking responsibility. You must recognize that all of your problems stem from you. It's not the market; it's not your people; it's not your customers; it's you. When you achieve that shift in your thinking, you can then move forward to solve your problems and experience success. You are stepping onto the path to positive change and growth for your business.
The next step is to start seeing your business differently. Assuming you have the right, valuable product or service to offer the world, you must organize all of the many moving parts of your business into one complete system that consistently delivers that product or service with excellence. To help you do that, I suggest that you see your business as being made up of Six Key Components. As you focus on strengthening these Six Key Components, your business operating system will become complete, everything will start to work harmoniously, and all your obstacles, problems, and frustrations will be removed. The goal then is to become strong in all six: Vision, People, Data, Issues, Process, and Traction.
The Vision Component gets everyone in your organization 100 percent on the same page with where the organization is going and how it is going to get there. To strengthen your Vision Component, get your vision out of your head and onto paper by having your leadership team meet to answer these eight questions:
1. What are your core values?
2. What is your core focus?
3. What is your 10-year target?
4. What is your marketing strategy?
5. What is your three-year picture?
6. What is your one-year plan?
7. What are your quarterly Rocks?
8. What is your Issues List?
With your leadership team now completely on the same page, share your vision with the rest of your organization to get everyone moving together in the same direction.
The People Component assures that you are structured properly with only the seats necessary to deliver your product or service consistently with excellence. This component also assures that every person possesses your core values and is sitting in the right seat with the right skill set. To help strengthen your People Component, first determine what your core values are (Vision Component Question #1). These are the three to seven values, characteristics, or behavioral attributes that define your culture. These should be non-negotiable. Stay true to them. Hire, fire, review, reward, and recognize your people consistently around these core values. Then, build your Accountability Chart, making sure your company's structure and all individual positions are clearly defined and understood by everyone. Once this is clear, make sure that everyone "gets" or understands his or her position, wants it, and has the capacity to do his or her job well.
The Data Component enables you to objectively manage your business through a small set of numbers, letting you have an accurate pulse of the business. To make the Data Component stronger, pick five numbers right now that you need to look at on a weekly basis to assure yourself that everything is on track in your business. If you can't come up with a list, here are five metrics to start with: number of sales contacts, number of sales appointments, closed business, customer satisfaction, and gross margin. Set a weekly goal and assign someone to manage and be accountable for each number, and then start tracking them in a weekly spreadsheet. When a number is off-track, the accountable party must take appropriate action to get that number back on track. Keep 13 weeks for reference at a glance. Continue to refine this Scorecard as you move forward.
The Issues Component helps you to compartmentalize all issues in your organization and solve them effectively in order of priority at all levels. Unresolved issues drain your energy and are barriers to your moving forward. To strengthen the Issues Component, list all issues as they arise. Get them on paper. When you meet with your leadership team, rank the issues in order of declining priority and then follow the Issues Solving Track to resolve them in order of priority. Identify the underlying root cause of the issue. Discuss the best possible ways to resolve the issue. Solve the issue by selecting the best action steps to take to make the issue go away forever.
The Process Component aids you in identifying the six to 10 core processes that make up your business model and teaches you to document them in a simplified fashion, which must then followed by every single person in the company. To strengthen your Process Component, take a big step back and think about what your business model is and what its core processes are (e.g., HR, marketing, sales, operations, accounting, customer care). Document each of the core processes without too much detail, focusing on the major, essential steps within each process. Everyone can then be trained to follow the same procedures. This will reduce complexity, establish consistency, and allow you to scale your business.
The Traction Component assists you in creating a 90-Day World in your organization where everyone works to complete a small set of priorities. To do this, everyone needs to be on the same Meeting Pulse, with meetings that occur on the same day, at the same time, with the same agenda, always starting on time and ending on time. To improve your Traction Component, start by meeting with your leadership team to establish the three to seven most important priorities that must be accomplished over the next 90 days. Then meet weekly to stay on track with those priorities, solving any issues that arise. Repeat these steps every quarter, always learning from your performance in the previous quarter.
If you work to strengthen these Six Key Components, all of the obstacles and frustrations you have been facing can be overcome. If you are feeling a bit overwhelmed right now, simply pick one key component to focus on and strengthen it. Before you know it, you'll build a solid, well-oiled machine and have a stronger business than you ever thought possible. Why not start now?
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