Closing on an acquisition is exciting, but it’s also overwhelming. Suddenly, you’re leading in an unfamiliar industry, inheriting a team you didn’t build, and putting out fires while everyone looks to you for direction.
The Yale School of Management studied this transition in Exploring Business Operating Systems in Search Fund–Acquired Companies and uncovered a common trap: first-time CEOs assume their growth plan is clear, but employees describe their work in task-level terms—“we mow lawns,” “we fix furnaces”—instead of strategy. The result? Fire drills dominate, important goals get delayed, and accountability becomes fuzzy.
What’s missing is structure. That’s where a Business Operating System (BOS), the soft infrastructure that translates vision into action, comes in. A BOS gives leaders the clarity to set priorities, align people, measure progress, and solve problems consistently. Without one, new CEOs often find themselves running on adrenaline instead of running the business.
What’s a BOS, and Why It Matters
Every effective BOS answers five essential questions:
- Clear, prioritized direction: Where are we headed, and what are the top priorities?
- The right talent aligned: What roles are needed, and do we have the right people?
- Communication and accountability: Who will do what, how much, and by when?
- Simple, insightful measurement: What data points tell us if we run the business well?
- Consistent, ongoing problem-solving: How can we resolve issues permanently as a management team?
The Yale research shows that implementing a BOS reduces recurring fires, improves team alignment, and builds organizational capacity. A well-designed Scorecard, for instance, lets leaders know if they’re “winning or losing in under five minutes.” And timing matters: the sweet spot for adoption of a BOS is 6–24 months post-acquisition, after the CEO has built trust but before old habits calcify.
A Real-World Example: Mike Tobey at Hose Monster
Yale research didn’t just define BOS. It profiled leaders who implemented one. One of the most cited was Mike Tobey, who acquired Hose Monster, a fire pump testing equipment manufacturer.
Upon acquisition, the company had no meeting cadence, no formal processes, and minimal accountability. Six months later, Tobey implemented the Entrepreneurial Operating System (EOS), a BOS designed for entrepreneurial companies.
The shift was dramatic. Weekly meetings, Scorecards, and clearly defined priorities created alignment and momentum. Not everyone stayed. One long-tenured employee opted out when accountability increased, but most of the team welcomed the structure. Morale improved, communication strengthened, and growth accelerated. EOS even simplified board reporting when Tobey copied his Rocks, Scorecard, and Issues into board decks.
Five years later, he exited successfully to a private equity–backed strategic buyer. As Tobey put it, EOS “turbocharged the game,” giving him and his team the clarity to succeed.
EOS: The Proven Operating System for Acquired Companies
The Yale research makes the case for a Business Operating System. EOS is that system, built specifically for entrepreneurial companies. Where the BOS framework identifies what’s essential, EOS provides the how: a set of simple, practical tools leaders can use weekly to align their teams and drive execution.
Here’s how EOS delivers on the five questions every BOS must answer:
- Clear Priorities → Vision/Traction Organizer
Get everyone in your company rowing in the same direction by getting a clear picture of where your company is going and how you’re going to get there. - Right People, Right Seats (RPRS) → Accountability Chart
Structure your organization in a way that not only reduces complexity and creates accountability but also clearly defines everyone’s roles and helps you get to the next level. - Communication and Accountability → Level 10 Meeting
Replace status updates and disparate touchbases with a disciplined weekly cadence and meeting agenda that keeps a team focused and moving through a consistent process based on human nature. - Measurement → EOS Scorecard
Start tracking the weekly activity-based Measurables that bring you clarity and keep your team accountable. - Permanent Problem-Solving → IDS (Identify, Discuss, Solve)
A proven method for cutting through symptoms to fix root causes, so the same issues don’t resurface again and again.
For CEOs in newly acquired companies, this structure doesn’t just answer the theoretical questions of a BOS. It provides a repeatable playbook for replacing firefighting with focus, aligning the team around what matters most, and building momentum beyond the first year of ownership.
Backed by Research: Best Practices and Pitfalls
Even with a proven framework like EOS, successful adoption depends on how leaders roll it out. The Yale research identified several best practices for CEOs bringing a BOS into an acquired company:
- Get the board on board. Alignment at the governance level strengthens alignment throughout the organization.
- Leverage peer networks. Other CEOs implementing operating systems can offer practical advice and shortcuts.
- Work with a professional EOS Implementer. External guidance accelerates adoption and keeps teams accountable.
- Treat it as a marathon. Full integration takes 12–36 months; discipline and consistency are key.
- Use a “system for the system.” Tools reinforce cadence and prevent backsliding. Learn about EOS One, the official software for companies running on EOS.
The research also highlighted pitfalls. A BOS is not a magic wand. It won’t save a fundamentally flawed business model or compensate for poor leadership. While the structure brings clarity, it can surface accountability gaps that not everyone is willing to face. In some cases, like the example above, long-tenured employees may opt out. But for those who stay, morale often improves because everyone knows their role, and the company finally has a clear path forward.
FAQs: EOS and Acquired Companies
How soon should I implement EOS after an acquisition?
The Yale research points to a sweet spot: 6–24 months post-acquisition. That’s enough time to build trust with your team, but early enough to shape habits before old ones harden.
Will EOS work if my company is in trouble?
EOS isn’t a band-aid for a broken business model or poor leadership. But if you have a viable company and the discipline to lead, EOS gives you the structure to align your team around a clear Vision and gain Traction.
What if my team resists EOS?
Change can feel uncomfortable, especially for long-tenured employees. Some may opt out when accountability increases. But most teams welcome the clarity, focus, and consistency EOS creates—and morale often improves once everyone knows their role and priorities.
How long does it take to see results?
Quick wins appear within weeks: clearer meetings, sharper priorities, fewer “fires.” Full integration typically takes 12–36 months as EOS becomes part of the company’s DNA.
Do I need an EOS Implementer to get started?
You can self-implement using free tools in EOS Academy, but many CEOs choose to accelerate results with an EOS Implementer, who brings expertise and accountability to guide the process. You can get expertly matched with an EOS Implementer here.
Your Next Move
Acquisition complexity is unavoidable, but it doesn’t have to define your leadership. A Business Operating System provides the structure to turn Vision into Traction, and EOS stands out as the proven framework for entrepreneurial companies navigating their first years of ownership. With EOS, you replace firefighting with focus, give your team clarity and accountability, and build the confidence that comes from knowing exactly where you’re headed. The next step is clear: connect with an EOS Implementer to explore how EOS can set up your company for enduring success.
Bui, Caroline, and Tony Phan. Exploring Business Operating Systems in Search Fund–Acquired Companies. Yale School of Management, 2024.
