Welcome to the next installment of our three-part blog series on the Entrepreneurial Operating System (EOS). In part one, we discussed what EOS is and how it works within small businesses. Read on as Team True takes a deeper look at one of the most important factors of the EOS system, setting goals that matter.
Before a business can set goals that matter, it’s important for all the members of the leadership team to be aligned on the company’s vision. Without a shared vision, how are members of the leadership team supposed to know where they’re going? Think of it like trying to follow the directions of multiple people who are all using their own map.
True Digital Communications, like other companies who follow EOS, utilizes a shared tool called the Vision/Traction Organizer (V/TO). The V/TO aligns your team on 8 critical components for your business (Core Values, Core Focus, 10-Year Target, Marketing Strategy, 3-Year Picture, 1-Year Plan, Quarterly Rocks, Issues List). Once everyone in the company shares the same vision and owns the plan, you’ll be surprised at how effective it is at helping your business gain traction to reach its goals.
At some point in your career, you might have heard of SMART goals. This refers to setting a benchmark for your business that is:
EOS is a big advocate of SMART goals, but the system uses them differently than you might be used to. In EOS, businesses break down their long-term vision and annual goals into smaller achievable goals called “Rocks.” This process helps companies to maintain focus and gain traction throughout the course of the year. For example, True establishes Rocks every 90 days. At the end of each quarter, the team meets to evaluate progress against these Rocks and how our efforts have impacted where we want the business to go for the year.
Rocks, however, are a little different than SMART goals. For starters, in EOS, it’s best practice to work towards only 3 to 7 Rocks at one time. Why is this a rule? A key component to accomplishing goals and gaining traction is focus and prioritization. Our target at the end of 90 days is to have at least 80% of our Rocks complete. Furthermore, when you’re running a business, there’s only so much time, people, and resources you can devote to accomplishing your goals. Since EOS puts a more realistic lens on goal setting, team members across all levels of the organization can contribute in meaningful ways.
One of the core benefits of using Rocks is that any competition within the organization about reaching goals is cast aside. EOS helps everyone in the business get on the same page about the primary goals and priorities for the next 90 days. We know that when we are focused on these priorities, we are aligned with our longer-term annual goals and vision. In this way, everyone is encouraged and incentivized to work together.
Now that we’ve learned what Rocks are, let’s talk about how a business can create them. A great place to start is identifying goals that can be tracked and measured throughout the year. For example, you might want to grow revenue in a certain vertical of your business.
Once you have your ideas laid out, weigh these potential goals against the business's overall vision. Then prioritize them. It’s important that all members of the leadership team work together to create the essential goals for the year.
Be on the lookout for the final blog of our EOS series next month, where we’ll break down how your business can have more effective meetings.
Are you curious to see how a business running on EOS can partner with your brand? Connect with True to learn more about how our marketing experts supported by EOS can help your brand reach its goals.
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