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SUMMARY KEYWORDS
business, people, scorecard, eos, core values, role, issues, leadership team, measurables, visionary, run, sales, client, organization, accountable, tools, life, meeting, team, person
Debra Chantry-Taylor 00:00
What the heck is EOS? Some of you might be asking this question some of you will actually already know because you’re already on the journey. And what I hope to do over the day today is to start to deep dive a little bit further into what EOS is.
Now, there’s not much I can actually teach you in terms of the tools, because they are very simple tools. But what I want to do is to supplement it with examples and things and actually help you to understand how you can implement it into your business. I want to also introduce you, you’ll know her, of course, but Carrie Bolton is here, Carrie as our other professional, EOS, implementer, who’s in the business blueprint community, so and Carrie is going to be helping me out because one of the key things that we want to do is we want to give you some real life examples about what this is about, and show you how you can actually use it in your business.
So I’m going to start to give me a bit of a chance to settle down, I’m gonna get you all stand up, if you don’t mind. And I’m going to ask you to engage with me.
So there are a series of common frustrations that every business owner goes through. And I’m going to put them up on the board. And if you have ever experienced one of these frustrations, then please just sit down. So the first one is about control. As entrepreneurs, we tend to be very control freakish. And sometimes we feel like we have complete lack of control in our business. So has anybody in the room ever felt like they’ve had a lack of control in their business? I think I could sit down right now, but I never say standing.
The next one is around profit, not having enough profit in your business. Yep. People you know, we’ve I love people, people that are most amazing things. But people can be a real struggle in the business sometimes, can’t they? If you don’t have the right people doing the right things, you can find people very frustrating. Anybody had any issues with people and their business?
What about hitting the ceiling, where you kind of, you know, going on great guns and the business is really, really taking off. And then all of a sudden, you just get completely stuck. And you don’t know why you’ve got stuck, we call that hitting the ceiling. Anybody hitting the ceiling? Right? Everybody was left standing.
And the last one is nothing’s working. You know, you’re in this business, you’re giving your absolute all doing everything possible, but absolutely nothing is working. And I was going to say there’s anybody left standing, I might just retire right now and let them run the show. But it was good to see that we all had the same common frustrations. And you’ll see as I take you through Eos, what this does is actually helps you to work on those frustrations, and bring everybody on the same page that you can actually overcome them and move forward.
So I’m gonna be talking very much about EOS and the EOS life. So it’s not just about EOS today. EOS is the system, it’s the tools, it’s the framework. But as EOS implementers our whole role is to have you living your ideal entrepreneur, entrepreneurial life. And what we mean by that is doing what you love. So the stuff that really makes your heart sing with people you love. So you love look forward to going to work every single day, making a huge difference in the world. The people we generally work with, they have a desire to leave the world a better place being compensated appropriately. Which means that you know, we’re not earning, I think I read somewhere, some a business and don’t 2 or $3 an hour, we want you to be earning what you’re absolutely worth in your business.
And finally, with time to pursue other passions. Because I don’t know about anybody else. Is there anybody in this room who could literally work 24/7 Because they love their business? Yeah, I’m a bit guilty of that. I’ve got my husband actually here with me. He’s sitting up on the top there taking some photos and things. But often I will be at work and I’ll be seven o’clock in the evening, and I’ll get a message and I’ll go Hey, darling, it’s like yeah, Hi, Steve. Are you coming home tonight? Oh, yeah, well, what time is it? Oh, it’s seven o’clock. Right? Okay, I’ll be home soon. So I tend to get a little bit obsessed with my work. But the whole point of implementing EOS into business is making sure you have time to pursue other passions. And we’re very, very fortunate. Steve and I have just got back from a two week campervan trip around the South Island in New Zealand with our two puppies. And we were literally able to turn off all technology and just go and enjoy the time. So that is what the EOS life is all about.
So what is the EOS, I think Dale did a very good job of explaining it. But I want to just give you my perception of it and and how we talk about it. So it is an Entrepreneurial Operating System that’s actually about harnessing your people’s energy, and making sure they’re all going in the same direction. And the way that I like to think of it, particularly the business blueprint environment, is that it is the baseline operating system. So like on your Apple phone or your Samsung phone, you’ve got a real basic baseline operating system and then you plug things in. And the reason why I think EOS works so well with the business blueprint stuff, is this gives you your operating system, your baseline tools that you use, and everything else that you learn within the business blueprint is the apps you plug in to make it work even better. And so we’re gonna talk about how we actually harness those people’s energy and using these simple tools and processes.
And I forgot to say hello to people online. Hello people online. I can’t see you but I want to say hello and welcome you as well. Okay, statistics, just this is just to let you know that I’m not making this shit up, right? We’ve been doing this for quite some time.
So EOS was actually developed many, many years ago, but 150,000 companies using these EOS tools worldwide. We’ve done 570 Plus accredited EOS implementers. So when I say credited as implementers, that is carry myself there are 570 other versions of us around the world all around the world, who have trained who have dedicated their life to actually helping others to implement this system. And we’ve done 110,000 Plus session days delivered.
So what do I want to do from today, I want to make sure that we had the following outcomes, I want you to get really, really real about your business. And there was a guy and I’m not quite sure how to pronounce his name properly. I think his name is Kurt Cordell. He was an Einstein contemporary. And he basically said that if you are working in your business, you cannot actually improve it, you have to get out of working in the business start working on the business. So my desperate plea for you today is to try and lift yourself above the business, look at it from a panoptic point of view a helicopter point of view where you want to call it, but make sure you’re actually looking at it and being real about it.
So we’re going to start by doing a questionnaire. And I really want you to think about, it’s not just about how you view the business, but how does your entire staff view the business, I want to make sure that we keep it really simple. I am very much all about simplicity, I will apologize if I use acronyms with a few acronyms and EOS. But in general terms, despite, you know, being having an MBA and being degree qualified, I don’t like all the stuff that comes that makes it complicated. I like to keep things really, really simple. So we’ll try to do that. Get results, I want you to actually leave here, knowing how you can get better results in your business. And to do that, I want you to leave with the plan as well. So if we can look with the workbook you’ve got in front of you, you should all have a copy of this sitting on your desk. And if you don’t please grab one from somewhere. And for those on line a bit, there’s a link to this as well. So if you get a chance to print it out when when writing in this, it will actually help you to leave with a plan you can start to implement into the business.
Okay. I know that Dale has introduced me, but I thought I’d just give you a little bit of an overview about who I am, just in case you’re wondering. And those who came for last I will have seen this before. But I’m an Air Force baby. My father was in the Royal Air Force. And so we traveled a lot. I grew up in Cyprus, then grew up in Britain, and spent most of my life up to 19 in Britain. Then I moved to Australia. I’m an Australian citizen, I got the Cobra hat and the driver bone and my little tree when I got my citizenship. And now I’m actually a Kiwi as well. I’ve got my Kiwi, citizenship as well. I’m a biochemist, like I said, as I say biochemistry here and food technology. I was a sales rep in my first job out of school, and I’m a marketer. And I’ve done my MBA program. And I have run businesses most of my life. So I’ve been running businesses since I was 25 years old. In senior leadership type roles, mostly for other people. Up until the last 15 years, we went on my own. I actually my first business was 13 years old. So running a business is in my blood. But sadly, my father and mother were not big business people. And so they suggested I should go and get a degree in science, because it would help me to find a good husband. And so I’m now a biochemist. Sadly, the first two husbands didn’t work out. But the third one who was here was awesome. So maybe I want a water business owner and also twice business failure. So I was actually a finalist for the New Zealand Businesswoman of the Year. But I’ve also had two business failures. So I actually know what it’s like to have all the toys, all the accolades, the fast cars, the beautiful home the holidays, I also know it’s like to worry about paying the wages bill, the tax bill the GST every month. So I’ve been on both sides of that. I’m an adventurer and fun lover. Most people will think going into a camper van for two weeks around the South Island without any technology would be awful. But we had a brilliant time. And it’s just so nice to get out there. And we love adventures, we’ve had a few more adventures than we were hoping for this time around. But you know, life is like that. I’m a wife and a furbaby mother. So I never had children. But I have one fur for babies. And if we were actually doing this in New Zealand, they’d be upset here on stage with me, they often come into presentations with me. And of course, we’re professional EOS implementer. And what that means is that we actually have been trained in terms of how to implement EOS. And finally, I’m still a business owner. So to this day, I run businesses as well on the side, I’m doing professional EOS implementation. So that’s why I want to tell you about me, just so you know who you are dealing with up here. And now I’m going to really hope that I can move forward. Yep, perfect. Okay.
So why do I exist? My core purpose is I’m really, really passionate about helping entrepreneurs live their ideal lives. And this actually came from the fact that when I had one of my businesses about three or four years might be four or five years ago now. In the time of setting up a brand new business, I actually lost my brother who was 44 years old. And at the time, I was working really, really long hours. I was loving what I was doing, but I was finding it very, very stressful. and it kind of made me realize that actually, life is too short, you know, 44 years old and he was gone. 10 months later mother passed away. And it was like another reminder that come on, this is not the way we should live our lives. So now my whole reason for being is to make sure that people can live their ideal life. So they do have that time to pursue other passions. So they are doing what they love with people they love. And that’s really the reason why I was so grateful to be invited to come and speak at business blueprint, because I want to share with you some of the lessons I’ve learned, but also from the clients that I’ve worked with as well, to make sure we can actually help you get to that ideal entrepreneurial life. So one of my favorite quotes is from Jim Collins, because we actually use the Good to Great book a lot in EOS. And he says that magic, magic occurs when you combine a spirit of entrepreneurialism, with a culture of discipline. And this is why I fell in love with EOS. So EOS actually use my events center in Auckland to launch into New Zealand. And when they came along, I went and I read the books and went, Oh, my goodness, this is everything that I’ve done in running businesses, and in my MBA program, and all of the books that I have read, or brought down into really nice simple structure that anybody can implement. And as entrepreneurs, anybody here get distracted by bright, shiny objects, new things. I can completely relate. And what I loved about this was that I also trained in scaling up as well. And scaling up is like the most amazing book, The Rockefeller habits are second to none. But they’re so complicated. And what I found in trying to implement that myself, was that it was just too much for me, because I can’t focus for that long. I’ll be lucky to get through the whole day and not be distracted by things.
So you know, how on earth can you actually implement your business. So EOS brings this culture of discipline through a very, very simple set of tools. And they really are simple, this is a really scary thing. Sometimes you feel like it’s too simple. And you want to add to it, and you want to do more things, please don’t, you can just get these basics, right, I promise, oh, my goodness, your business. So just make it look like it’s a complete set of simple concepts and tools. And what it’ll basically do is will help your team get better at three key things. So the first one is around vision, we want to make sure that every single person in your organization knows where we are headed, why we are headed there, what we’re trying to do, and the plan to get there as well. And I have no doubt you will have very, very strong visions. But in my experience, when I work with clients, you’ve got the vision in your head, you’re not so good at clearly articulating it to your to your staff. And this applies like day or said to small businesses and large businesses. In my business, only three of us that are actually in the business, we’ve got a VA over in the Philippines, I’ve got Jen my assitant and myself. And yet we run ELLs in that business like any other business does. So it is really important that we get that stuff out of our heads onto paper. And a good portion today will be around how we do that. We’ve got to get make sure we’ve got traction. So that is instilling focus, discipline, accountability throughout the company. So everyone execute on that plan every single day. And what I mean by that is running effective meetings, having a really good meeting pulse, making sure every knows what their number is, what the magic number is they had are responsible for. And then finally, we have healthy. And I’m gonna introduce you to my team a bit later on. But we want to make sure that our leaders become a really cohesive functional team that actually knows how to have fun as well. Because life is too short to not be doing what we love with who we love. And so we’ll make sure we actually have that ability to have the difficult conversations in a fun environment. So the way today is going to run my first session up until morning tea. It’s just an overview of EOS, I want to remind you refresh you about the main tools, we use an EOS. And even though you may have heard it before, there is a guy who worked with families and that had Conway His name is Ida. I’m forgetting all these names today. But he basically said that you have to repeat something a certain number of times before somebody hears it for the first time. And we know that number is seven, according to this study. But speaking with Kerry this morning, the latest research actually says 11. So we’ve got seven to 11 times before you actually hear it for the first time. So even though you may have heard it before, I’m going to not just be a pure teacher, I’m going to intersperse it with ideas with some examples from my own clients. So you hopefully can see get some context of how it works. The second part of the day, we’re actually going to do some workshop stuff at your tables. So actually, you know work through and start working through the video that Dale talked about the vision traction organizer, that is what we will end up leaving with which is literally a two page plan, where on the first page, you have the vision and the second page of the tractional a plan to achieve it. And by the time we leave here, I want you to have that really, really clear in your minds by using the power of the group that we have here. And then finally, I’m actually going to give you a little bit extra than what we normally do in EOS, which is there is a great book that Gina has just written or a little while ago written called the EOS life. And that is actually how do you make sure the business when it’s all sorted will kind of run it Self, but how do you make sure you manage your own energy?
So EOS is about managing the energy of the whole company. But how do you as an entrepreneur, make sure you manage and maximize your own energy. So we’re working through some stuff there as well. There’ll be a second workbook coming out after lunch. That’s what we’re gonna do. But before we get started, I would love for you to turn to page three and four, in your workbooks. And on there, you will find the organizational checkup. And there are 20 questions there that I would love for you to really honestly answer about where your business is at right now. And if you think about it, what I would like you to do is, again, try to remove it from what you think is going on. But actually be really honest, as an example, one of the questions is, we have a clear vision and writing has been properly communicated and shared by everyone in the company. So if you’re answering that question number one, when one is weak, and five is strong, if I went and asked your receptionist, or your toilet cleaner, or the guy who polishes the nuts and bolts out in the workshop space, what the company vision is and how they fit into it, the only way I would get a five is that person actually said yes, I know exactly what it is, I know how I fit into it. So I’m gonna be a few minutes just to answer those 20 questions, if you don’t mind. And just do it as real as possible based on your entire organization.
Now, once you’ve finished it, you can total it up, it will actually give you a bit of an understanding about where you are at. But the actual real reason for me asking you that organizational checkup was to actually get you to start thinking about working on the business right from the start of today. Because now by having gone through that, you’ll have some ideas around where there is some room for improvement, where you might be good, but we’d love to be great, and how we can actually do that. So that will be in the back of your mind. Now, as we start to work through the day and start to implement the tools. So looks like most of us are pretty much ready, I will start to move on. Now, I’m going to start to use this little flip chart here. And you’ll see a little bit later on in my session room, I actually have a 3.3 meter whiteboard. So this one feels kind of tiny to me, I’m not quite sure I’m gonna go drawing on it. And I’ll do my best shot. I just feel like a PowerPoint is wonderful. But I actually really enjoyed drawing what I’m talking about. So I’m going to use the PowerPoint, but also drawn here. So we did a quick overview of the EOS model and how it actually works. And basically, we’re gonna draw the ers model up here. So what Gino Wickman discovered, was that every single business experience is the exact same 136 issues. And if you can work to overcome those issues, by strengthening these six key components, you will improve your business. So the EOS model always starts with your business in the center of it. And there are six key areas that we focus on, if we can actually increase and strengthen the six key areas. In general, it adds around about 40% of the bottom line of the business. So the first ones you will see is very much around vision. And in each of these six key components, we’ve got what we call the foundational tools. And there are two things that we have for each of these components. So I’ll come back to that in a moment.
The second part is some vision, as we said, is around making sure we’re on the same page. They know why they exist. They know what they’re doing in the organization, they will have a clear understanding about where we’re actually headed. And we’re gonna do a lot more work on this this afternoon. So we will skim through that a little bit in the first session. But that’s what vision is all about.
The second one is around people. And like I said in the beginning, if you get the right people doing the right things, your business is fantastic. But you get one person who’s not doing the right thing or who doesn’t follow your core values. And they can be the rotten apple in the business that actually destroys the business. So we’ve got about how do we make sure we got the right people in the business.
The next one is around data. And data is about just making sure that we’re actually looking at the right things I found I spent a number of years working corporate life throwing out into my own businesses. And often we would measure things just because we always have or we’d measure things that makes us feel good, wasn’t wonderful, we’ve got that many Facebook likes really doesn’t matter as actually making them as the business. So having the right data is very much about making sure we’re measuring the things that will make a fundamental difference in the business.
The next thing is around issues and issues. We know they exist, everybody has them under the 36 month to be precise. But what tends to happen is as business owners and leadership teams, we don’t tend to highlight these issues. We don’t have to do very much with them or best case scenario. We highlight them we discuss them a lot, but we do nothing about actually solving them. So we’ve got two tools will actually help you to resolve issues that their root cause and if you do that that strengthens the entire business.
Next one is around process and there is a new book just been released by Eos, which is all around process. And process is very much about ensuring that its core processes are absolutely documented and people know how to follow those core processes. And finally, the first book that Gino ever wrote is around traction. And this is making sure like I said, people know how they fit in to the business plan, what they’re responsible for, and having meetings and things to actually keep them on track. So see how good my drawing actually ends up being. You go. And that is the US model is not quite on the screen yet. But it’s there you go. So we’re going to talk about these six key components a very high level to start off with, I’m not going to go into too much on the vision side, we’re gonna do some workshops, but stuff around that this afternoon. But we’re going to start with what it looks like. So Jean always says vision without tractions hallucination, we all have a clearer understanding of where we want to go and what we want to do. But if we cannot clearly articulated, if we can’t get all our people on the same page, and pushing in the same direction, rowing in the same direction, then you’re not going to get there. So the first part that we have to look at is how do we actually make sure we have got that vision sorted, I’m not gonna go through slides.
So we have this thing called the eight questions. And this is in your workbook, it looks like this, it is the vision traction organizer, it’s the thing that I have showed you, we actually print this out every single quarter and laminate it and use it in our business. And the eight questions is what we’re going to cover off in the workshop. But it’s really things around, you know, what are our core values? What are we? How do we operate around here? What’s our core focus? Why do we exist? And what do we do? What’s our 10 year target? What’s the big, hairy, audacious goal, as Jim Collins would say? What is our marketing strategy? Who are we actually targeting? And why? Why would they come to us? The three year picture? What does it look like in three years time? How do we actually make sure we know where we’re headed.
And then we have the second page is around the traction part of it, which is about how to bring that down to the ground. So once we’ve got that great idea of where we’re headed, how do we actually bring that down to the ground. So don’t worry too much about this right now, because we’re gonna go through this in great detail later on, I’m going to run like little mini sessions with you, like I will do with a client in the next couple of sessions. But once we’ve got that, the most important thing is we have to make sure it’s shared by all, and that it can be a number of different things. The first one, we have to have it actually written out somewhere that people can understand it, they know what it means and how they fit into it. But then we have to make sure we are repeating it over and over again, how many times were to hear something for you of the first time? Yeah, 11 is a new figure. So this is really hard for us as entrepreneurs, because we tend to think I’ve already told you this. And so when my team’s I say, Look, don’t worry if how many times we told them, when I told them in the beginning, we had a meeting of the week, grapes, that’s twice, just another five to have many more to go. And we have to kind of bite our tongue and just go we have to keep repeating this, if people don’t do this regularly, they will never actually get it. So part of the shared by all is to make sure that we actually have, yes, the physical manifestation of what we want to achieve. But everybody understands how they actually fit into that plan. And we’ll do a lot more work around that this afternoon. Than 100% Strong looks like you know, everybody knows exactly where we’re headed, what we’re doing, why we exist, what our 10 year target is, and they actually execute on every single day, the people part comes down to two parts.
And we talk first of all about having the right people. And when we say the right people, these are the people who absolutely share your core values. And again, we’re going to do a little bit of work around this and we go into our core values. But it’s really important that people in our teams, even if they’re really good at what they do, they have to actually share our core values and live by our core values. And we have to live it we have to breathe, we have to hire and fire based on it, we need to make sure that those people actually meet that the second part, was picked up. So the way that we do this is we once we have actually established our core values we do later on today, we literally set up this thing called the people analyzer, it’s a really, really cool tool. It seems really simple. People go this cannot be all of it, but it absolutely is. So the people analyzer literally means that we put up a chart, and let’s just say we’ve got five core values, we’re gonna use the EOS core values as an example here. So humbly, confident, grow or die help first, do the right thing. Do what you say. And we write our established core values across there, which we have actually discovered by looking at our best people. And once we discovered that we then put the people’s names and here we go, we’ve got Melissa, we’ve got David, and we’ve got Anna. And in this people analyzer, what we then do is we go through first as leaders, and go in my team, what does my team look like?
So I’ve got Melissa and my team. Do we think Melissa is humbly confident, and we’ve defined what these values mean and how we actually expect people to behave based on them. And we then give them either a plus a minus or a plus minus. And the plus is very much means that most of the time this person actually shows us core value. You know, we’re human beings, right? So things happen, we can’t always be 100% Perfect. But if most of the time, Melissa is humbly confident, she deserves a plus in that people analyzer, we then have a minus. And a minus means that most of the time that person does not exhibit that value. So David, God love him, he is not humbly confident most of the time, might be a bit arrogant, doesn’t really sort of, you know, doesn’t fit the core values. So he would get a minus. And then we’ve got somebody who might get a plus minus. And plus minus really means that they flip flop, you don’t know which day of the week it is, if you go in on a Monday, they’re beautifully humbly confident by Friday, they’re arrogant. So they’re really not sort of sticking one or the other. The great thing about a plus minus is you can work on it. If somebody is not actually living by the core value most the time, you can start as a leader say, How can I help you with that? What’s going on? What are the things that are happening in your life that potentially could affect this? And what can I do to help you to get back to a positive, if they’re a minus, like David is an example, it’s highly unlikely they will ever change. It is not part of their core values, not how they operate. And so this gives us a real red flag that this person may not be the right person. And we go through, we do this with all of the different values, until we get to a point where we go, right, we know what this person looks like. And then we decide as a team, what is the bar we’re prepared to accept? So you know, for most of us, we might say, Hey, we’ve got five core values, we probably accept one plus minus, because every once in a while somebody may not be living by the core values, something’s going on for them. But anything less than that. We don’t accept that around here. And once we have that bar, we have to look at it and go, Okay, so now if we look at this, we’ve got a couple of people issues there, right? Because the first people issue is David, I don’t think there’s any chance for him to come back from that he’s got three minuses and two, we’ve got two plus minuses, he’s probably not the right core values fit. Anna may have some things going on. So as a leader, I would actually, I’d first of all, ask Anna to rate herself as well. But we then have a conversation go right. So I think that in these three areas, we’ve got plus minuses going on, what can we do to actually bring you back up to a plus? How can we help you? What’s going on your life? What training do you need? What support do you need? How can I actually make sure that you come back to being a plus across the board? With David, the conversation would be like, David, do you enjoy working here? That’s my first question, or would you enjoy working here? Any hesitation or pause? We’ve got a real problem. And then once you start delving deep inside to find out, you know, how do they feel about being in this organization? Do they feel like they fit in? Tell me what’s going on for you. And we hope these people will, through living by these core values will actually self select out of the business? And if not, we’ll have some tough conversation about how do we get rid of them. So that’s the people analyzer. Because I use this all the time, it’s sort of second nature to me. But does that make sense in terms of a way to look at your people to see if they actually are the right people? Yep. Cool. So that is how we make sure we have the right people.
The second thing is, we have to make sure that we actually have in the right seats. And this is one of my favorite, favorite tools in EOS. And I’m going to tell you, how we actually do it with our clients. So we talk about having structure first and people second. And what we mean by this is, as an entrepreneurial business grows, we tend to grow organically, we often find that we don’t define the accountabilities and the roles really strongly. And people just kind of fall into the business and start doing things. It could be a family member, it could be a friend, it could be whatever it might be, but it grows organically, and we lose sight of what the structure really needs to be. So we might well have a what are they called the hierarchy charts? Well, they called an org chart. That’s right, we might well have an org chart, which is very, very traditional. It says, Hey, we’ve got a CEO, and we’ve got a general manager. And then we’ve got these areas here. And all it does is it gives you a title and a name. And from that nobody has any clue what anybody actually does. So we actually encourage our clients to go look at their business and go if we want to achieve our goals in six to 12 months, what is the structure we actually require to achieve those goals. And it’s pretty much in most businesses, there will be three main areas.
In fact, in every business, there will be three main areas that they absolutely have to have. And sometimes this might go into more, but the accountability chart goes, Hey, let’s talk about the main functions of the business. And let’s look at what is required in that main function. So the first box is around sales and marketing. If you cannot sell stuff, you have not got a business. So every business must have a sales and marketing function. The next function is around operations. And again, if you can’t deliver that stuff, then you haven’t got a business. And then the third and final one is finance and admin, which if you don’t bill for that stuff, you haven’t got a business and I use the example of my event center. So we were really really good at sales and marketing. We got some amazing brands using the Event Center some of the biggest brands in the world coming and using it sales and marketing Fantastic, operationally, I think we did. Okay, we had some really great processes going tick boxes, things were going pretty well. On the finance and admin side, we forgot to build people. When we finally weren’t at the business, because a COVID was over $10,000, with a bills I had never ever been sent out. Because we weren’t very good, the finance and admin part. So every business needs to have these three things as an absolute bare minimum. And sometimes there’ll be more. So I’ve got a client, for example, who has a restaurant business that also manufactures food. So they’ve got two operations functions, because they’ve got the restaurants or the business is very unique. And then they’ve got the food manufacturers more like a production side of things. So this can be more than three, but we have to have these three, what we then say is right, what are sales and marketing actually accountable for? So we’ll go through and we will give the five kind of main things that sales and marketing are accountable for the sales and marketing plan, lead generation profitability. It could be around you know, number of visits, the website, wherever might be wherever you think this person should be accountable for, you then do the same for the operations you go, right in order to deliver this product. What are the five kind of key areas in this function that need to be delivered upon great customer service, quality control, delivering on time and on budget, making sure there’s no errors, whatever it might be the five main things, and similarly for finance and admin. And as we go through this, in this, there might actually be the if you’ve got any people who are part of this, add the next layer down, for example, your first bullet point would actually be what we call LMA. An LMA is leadership management and accountability. So that covers all of the people processes we have to do to lead manager hold them accountable. And then we’ll have four other bullet points that actually specifies this job. Above all of this, we have got an another role, which sometimes can be called a general manager or a COO, it’s a person who kind of holds it all together. So we call this the integrator. And their role, they’ve got a lead manager and hold accountable the leadership team. But then they usually have things like, they have the accountability for the business plan, making sure we’re actually executing on a business plan. They have the overall accountability, profit and loss, they tend to look after special projects, they are there to kind of beat the drum, make sure everyone on the same page, make sure they’re all doing what is required to actually achieve that business plan. They run the level 10 meetings, they do all those things. And then in most businesses, we have another role. And, you know, it’s great to hear that Dale and his team are implementing EOS. I think they might have one of these in their, in their leadership team, a visionary, let me describe a typical visionary for you. And you can decide if you actually relate to yourself, or do you have one in your organization.
So the visionaries role is generally about having the big crazy ideas. They have the big relationships, they wake up in the morning, they’re thinking about loads of different things. And in their role in the business. They are the one that comes on a Monday morning to the meeting, they go, Hey, guys, we’re doing really, really well. But I had this fantastic idea. I was fishing on the weekend. Oh, really? What’s that? Well, I think we should make stuffed elephants. Oh, okay. Stuffed elephant sets. Interesting. And before you know it, the whole team was running around going okay to make stuff that was really some fabric, we need some stuffing, we need to get some eyes, whatever else we need. And then this person will come in the next Monday morning. And ago, what you guys are doing is that we’re making stuffed elephants while you’re doing that, because you said you wanted to make stuff relevance? Oh, no, I’ve moved on from that. Now I’ve got another idea. So these are the people that they call crazy until everything works out. And then they are geniuses. And they have to be in a business that wants to grow, right, because without that forward thinking, nothing will actually happen. The problem is they’re a danger to the business as well. Because if they’re not managed in the correct way, their energy can actually be really harmful rather than positive. So by giving them a box that they actually own, we can say hey, you know what, Mister visionary, Mrs. Visionary, we’re the things we really want you to do. Here’s the big ideas, we want you to have the big relationships, when you look at industry trends, when it comes to the brand new things you can actually do. Or we’re going to put this person in here, that will just keep you a little bit away from the rest of the team. And their job, they’ve got the best job in the whole wide world is to not squash the beautiful energy that visionaries bring to the organization. But to actually enhance it, and and harness it and make sure by the time it actually gets these people down here. It’s a good idea. It’s been tested, we know it’s going to work, and to keep them away from the day to day running of the business. Because as a visionary, and I have to admit, I have some visionary tendencies myself. We can be really, really damaging to the organization. We will go in there and of course, we can do everything better than everybody else. So we want to tell everybody how they should be doing it. But I can do it this way. And I will let them and we will meddle with our fingers and we’ll end up selling the team. So by actually defining this role and going this is what we need you to do. Who, and you will come through the integrator before it gets to this part here. It gives the organization a really strong plan for how to achieve it from a structural point of view. So, anybody think they might be a visionary in the room? Yeah, I thought there might be a few. Excellent. What I love about this, I was working with a client, and he was the visionary of a truck building company. When we’re talking about your the structure of the organization, what should be done, he actually shared, what he really wanted to do was spend time running his family’s dairy farm. And he wanted to come in under the big picture stuff, just the ideas, but isn’t the the trade shows every year and come through with a new things they want to do? By defining this box for him, it meant he could actually do that. Because now everybody else knew what they were accountable for what they had to do. And he could actually free himself up to just do the big picture stuff, and go off and run his dairy farm. So as a team, we do this as a team, right? It’s not up to you as the visionary to go, I know what this should look like, and who developed this all up and then to present it as a fait accompli, here you go, here’s my accountability chart team off you go and go and do it. We actually do this as a leadership team together in a room. And we sit there in the room, we go, Hey, how do you think this business should be structured to deliver on we have to deliver on, and this can take somewhere between three hours, I think the record is something like 10 hours, my longest was six hours, I worked an advertising agency, we went round and round and round in circles, because they couldn’t get past the ego part of it. This is not about ego. It’s about accountability. You may be accountable for sales and marketing, you might have a completely different title. I don’t really care what you call yourself, as long as you actually deliver on those five key things. But within the advertising agency, everybody wants to be on the leadership team. I’ve always been on the leadership team. Yeah. So if you don’t understand I’ve always known leadership team. Okay, that’s really good. We’ve got five roles here. Which one? Do you want? One of them? Well, they’re not the leadership team. But fortunately, leadership team. Yeah. But again, as a team, we’ve decided this is the structure we need to actually achieve that. So Which role do you want? None other than you’re not on the leadership team. And so it’s a really, you have to do it as a team. And we do structure first people second. So the first most important thing you do with your team is decide what is that structure, it doesn’t have to be just five things that could be five or seven long here, as long as the main functions of the organization are covered. And once you’ve got that you’ve got the five key accountabilities. Then you start asking, have we got the right people for it? And this is where as a team, you get to decide which role do you actually want? So let’s just say I was working with as a whole team here, we’ve got five roles there. I’d say, Okay, who would like to the sales and marketing team that says a marketing role? And somebody put their hand up? And I go, Cool. Let’s have a look at that. So I want to know, do you actually, G WC this role? Do you get it? Do you want it? And do you have the capacity to do it? Now, get it is deep in your gut, if you told me a sales and marketing role, I completely get that, right. It’s been my life, I understand what’s required, I completely get it wanted, means I actually want to jump out of bed in the morning and do this right I’m super passionate about it’s what I love to do. I don’t want to do sales and marketing. So for me, I would not be a W in that particular role, capacity to do it. It’s not about time capacity, because we all have the same amount of time. And there’s some certain time management tools, we use any OS that can help you to maximize that time. But it isn’t about time. Do you have the capacity, technical knowledge, expertise and experience to the job properly. Sales and marketing, I’d get a C without a doubt, finance, maybe not so much. I can do accounting, I can do finance. I my first 100 was an accountant. So I learned a lot from that. But the reality is that it takes me twice as long to do as an accountant would, I’m probably more likely to make mistakes, because I don’t really enjoy it. And so I’d have to say capacity to do it. I don’t have a say on that role. So in your team, you might have two people put their hands up for sales and marketing, what we actually do is we go around the table, do a real time review. And we go right, we’ve got Carrie who wants to do it. We’ve got customers names up here, John over here, and we’ve got Mary over here, all of you now get to score yourself. And then we get to score you too. And we go around the table. And we actually carry you know what? I actually think you get it. I’m not sure you want it. And capacity. I’ve got a bit of an issue there. And we make sure that we don’t just give people a negative feedback. But we give a reason why. And the reason why I don’t think you want to do it is I know you love Exit Planning. And that’s where you will want to be doing things. So I think you don’t really want to this role capacity to do it. I don’t know I just think that in reality, you probably haven’t had the experience we’re looking for. So we go around and every person is put their hand up, get some real time feedback from everybody else in the room until we get to a point where we actually agree who was the right person for that role. That is the stuff you don’t get to reason the books you can’t see happening, that is the stuff that’s really, really important. You could develop this, you could get it put together, you could decide who to put it in there. If you don’t go through that process, you don’t bring the team along the journey. So I’ve had two teams where you had 11, people come into the focus day, and I would highly recommend you never bring people to a room. Because the reality is probably at most, you might get eight people, maybe seven more likely five on the leadership team. That means that six of those people, I’d be leaving that room, not particularly happy, because I’m going to run the leadership team. But by taking them through the process, they get to understand why they don’t have a wrong leadership team. So what they see is that this is the structure that we require to build the organization to achieve its goals. These are the roles that we have. And I don’t fit those roles. Therefore, I’m not part of the leadership team. Now, I’m sure Carrie can also share this. I mean, I’ve had people stormed out of the room, I’ve had people cry, I’ve had people refuse to talk for the rest of the day. So we have some some strange reactions, but they go away. And they think about it. And they actually realize it’s for the greater good. And because you brought them on that journey, they understand why they don’t have a role that leadership team. And we all say them, it’s on America, you still got a job, same salary. So that same title, it’s not like you’re going anywhere, you just don’t have a role the leadership team. Makes sense. So that is the the two parts of the people think about all this stuff I just drew should be up here. So we always go, what is the main function of the business? What are the five key roles that person has to have. And it’s only after we’ve done that, we then go and put the name into there. And then what we have so for example, marketing and sales, LMA marketing, hit sales numbers, sell account management, we check to make sure the person or people get set once it has capacity to do it. And then we put the name in there. And we do this as a in real time with the team with giving feedback. So in our particular example, before Melissa, David and Anna, we can go through we go do they get it, they will have capacity, you then do this for every role within your organization, every person in that role to see if you actually have a person who gets it one has capacity, there’s two types of people issues you can actually have, right? Because you have to have three GW three yeses. For GW SC, you cannot have somebody doesn’t get it, that will be an absolute disaster for the business, you can’t have somebody doesn’t want it, because that means they’re not going to enjoy doing it, they’re not going to take responsibility for it’s not going to happen. And if they don’t have the capacity to do it, they will stuffed up 10,000 doors of unbuilt invoices. So once we’ve got these, these sites, we then ended up having a chart that looks like this across the whole organization. The beauty of it is anybody in the organization can see all of the accountabilities and the roles there. And they can say if I want to talk to somebody about the website and website visits, or look, that’s that function there. That’s the person who’s accountable. And when we get to scorecards, you’ll see that they have scorecards related to what they’re doing. So two kinds of people issues, right person wrong seat, this is a tough one, because these are your family that you love that share the same core values, but they’re not in the right seat, they don’t GW see it, you’ve got to try and either find another role for them in the company, they do GW C, or you have to let them go. And this can be tough, because these can be people have been there for a long, long time, who you absolutely love, they’re part of your family. But if you do not get them into the right seat, they will have a detrimental effect on the business. And the second one is the wrong person, the right side, typically sales people who tend to be high achievers, they might go out there and they do a great job in terms of selling, but they don’t share the core values, and you’re letting them get away with it. You’re basically encouraging everybody else to not follow them either. So they are absolutely poisonous from a business perspective. Either way, these people have to either be moved into so the first one, try and find a role for them or let them go. Second one, let them go as soon as possible, because they will have a detrimental effect. That’s people 100% Strong means we’ve got that accountability chart completely. We call it drawn out for the next six to 12 months, what do I need to do to achieve in the next 12 months, I’ve got one client who’s selling not here today. He’s a busy blueprint member, he and his team have gone five years ahead and actually plotted out what it will look like in five years time. And they’ve got an entire accountability chart for five years. And what it means now is they can start thinking about what’s the next role they have to fill. So in the Accountable job thing, one thing I forgot to mention is you can actually wear multiple hats. I could be the visionary and the sales and marketing person. That’s absolutely fine because in a small organization, I probably have to do that. But what you cannot have is two people in the same accountability box. Because this is like when you send an email to six people and your CC and six people how many will actually do Action that email. None, or six, not short is worse, because six people doing it and doing it differently or zero people are doing it. So one person is accountable. That is it, you might wear multiple hats or in his five year vision, his five year accountability chart, he can literally he’s got people wearing multiple hats, but he can very quickly see, as the business starts to grow, and they start to need more people who can go, that’s the next role we should be filling. That’s a really helpful tool. Okay, back to the model. Data. Data is, consists of two things, we use a thing called the scorecard. And we’ll have we have what we call measurables. And in terms of the scorecard, this is a very, very simple tool. I love this, quote, If we have data, let’s look at the data. If all we have our opinions, let’s go with mine. And as a visionary, who’s quite strong, I have very strong opinions. So we don’t have data and scorecards, we just do what I want to do not nestle the best thing for the business. So where to go, right? What are we what’s the data we have to look at? So the scorecard is actually a really, really simple tool, which literally, is a spreadsheet, a piece of software doesn’t matter, where you actually go through and go, What are the key measurables, we want to look at on a weekly basis. So every single week, in our level 10 meeting, we review these measurables, and we’re going to look at them, we’re gonna set a goal for them, we’re going to look at them on a 13 week rolling basis, so we know who looks after it. And they’re going to review it on every single week on a 13 week basis. So here you go. This is our scorecard where it is red, it means we haven’t achieved it. Now, this is not about absolutes, per se, but it’s about recognizing where we have trends. And it has to be a mixture of leading and lagging indicators. So you can have your lagging stuff, which is your revenue, it’s the things that have already happened, where are the leading indicators. So on this one, it’s things like sales calls, sales meetings, proposals sent out, they’re the things that actually lead through to bringing business into into the, sorry, bringing money into the business. And if you’ve got reds on those leading indicators, you know, they’ll eventually affect the lagging indicators. And I share this openly, because this is something that we actually do as iOS implementers, we have got what we call the four to one model, it is our funnel. And what it basically says is that for every four people that you have a Vth call, which that initial call with two of them will end up having a 90 minute meeting. And then one of them will pop out the bottom as a client. Now I’ve gone further than that. And I also know that I send out 10 books, I generally get four calls, I get to 90 minute meetings and one client out of it. So on my scorecard if I’m not hitting my 10 books in a month that that’s what I want one new client a month, not gonna get one new client a month. So it’s really important that we’re looking at that. And one of the examples that I gave is that who has been affected by COVID, who in their business. So imagine running an event center, and a coaching business, a new coaching business in the middle of COVID. Not many people want to come to an event center, and most people will not really keen to get together in coaching, particularly New Zealand, we had really, really strict lockdown laws. And so as a consequence, it would have been easy for me to actually get rid of the scorecard, and go, Okay, we’re not gonna look at it, it’s too scary. We did it every single week, we had reds across the board. But what we didn’t realize was if we kept going like that nothing would ever change. So it forced us to face that reality and go, What do we need to do differently. And what we did realize the things we could actually affect with a leading indicators. People still read books when we’re in lockdown. People still want to get information or locked down. So we had to focus more on that, knowing it wouldn’t necessarily lead to results immediately. But it gave us something to do. It also made us realize that we had to find other ways to get income. Because sadly, when you’ve got an event space and you’ve got a business and you’ve got staff to pay, you can’t not pay them, you can’t not pay the rent. So what else can we actually do? So these scorecards have to be things that are really meaningful, but where you can pick up trends and things as well, and start to action them. So every department has a scorecard. Your leadership team that Dale talked about your executive leadership team at the top of there has got a scorecard which the high level stuff, usually revenue, usually profitability, cash flow, definitely from those sales kind of calls, then each department has their their scorecard as well. And so they’ve got a scorecard with a market that goes a much deeper high level, this number of clients lower level, what else do they actually need to know in the marketing? And then that so each of those areas has it then the sub areas have them as well. And from that everybody gets a measurable too, because if you remember back to the scorecard, the scorecard had a number of things we were measuring, and somebody was accountable for it. As if you get this right. Every single person in the organization has got a number they know they’re accountable for and then measured on every single week and level 10 meeting on the scorecard. For a receptionist who might be picking up a phone within three rings, it might be answering an email within 24 hours for a salesperson to be a certain number of sales call center proposals, or different things. I’ve got a lot of companies actually import products from overseas, they’ve got things like di 14 Are things being delivered on time, what’s out of stock, they’ve got stock turnover, in the food business, it’s around how many meals they produce, how many orders, they have this whole range of things, but it’s really important. These must not be vanity measurables, they’ve got to be things that actually help you to understand when something is going wrong, so you can make a difference immediately. Okay, scorecard measurable was done, take 100% Strong, every single person knows what they’ve, what their scorecard is, what their measurables are. And they are looking at it every single week without fail. Even in the tough times. issues. We’ve talked about issues briefly, but you know, every company has issues, what we tend not to do is actually deal with those issues.
And so the whole EOS model has a really, really simple tool that says, first of all, let’s create an issues list. Let’s have an issues list, both short term and long term, when we record every single thing that is going wrong with this business. Now an issue could be also a positive as well. So don’t think of it as being a negative, it could actually be a positive an opportunity, there’s an opportunity to go to this market, that becomes part of our issues list. And we have a short term a long term one. And what we do is we create these lists, and we use this tool called IDs. And when we IDs, it’s called the issue solving track another acronym and EOS. We use these three things to solve issues. The first thing is we identify the issue. And in my experience, we don’t do this very well. Because we all want to jump in to provide solutions, right? Oh, look, we’ve got an issue here. Let’s provide a solution. So when you identify an issue properly, you become the curious child, you ask lots of questions. Why? So why is that? Well, what about that? When did that start happening? What do you think’s causing that? You’re asking all the W questions to find out what the real issue is? And I had a classic example of one of my clients other day, who was a big importer. And they I was observing a level 10 meeting and they said, Oh, we’ve got an issue with operations. I said, What do you mean operations capacity? Oh, okay. What do you mean, what operations capacity? We haven’t got enough people in operations to do the work? Oh, that’s interesting. Why is that? Well, they just haven’t got people to do the work. Okay, so what’s changed? Well, since COVID, hit, we’ve got delays on shipments when the shipments come in. We’ve got pre orders back orders. rora has that. Okay, so what did you used to be for COVID? Well, the computer system handled it all. Okay, why doesn’t the computer system handle it? Now? It doesn’t have the ability to handle back orders and forward orders and whatever. I’m not on my favorites. But he’s right. And is that okay, that’s interesting. So what if the computer system could actually do that? Would that be good? Like, yeah, what would that look like? Oh, we’d have to do some development on what would that look like? And so we started discussing, you know, what were the the identification, though, if we had just gone with the initial thing, the easiest solution, we will employ more people. Now, I know that your employment laws are the same over here as they are in New Zealand, you can’t employ people and get rid of them quickly and easily. So that would be a really sort of silly mistake to make. So by actually really identifying what the issue was, we thought it was a software or process problem in actual fact, and we worked on discussing what the possible solutions were. And some of it was, we could hire more people who could who temporarily contractor, we could update the software, make the software work for us, we could change the process. So the process actually works better. And we discuss it around the table with everybody contributing, don’t think because you’re accountable for operations, you have to solve it, you’re actually using the power of the greater good of greater minds to actually solve that issue. And so once we discussed it, we can then go right, what is the best solution? Another really simple example I like to give here as well is I had a client who was in the education sector, and they, one of their staff can hold the staff level 10 meetings. Should I look, I’m really upset because I don’t have my name on a Copic. Now, as a visionary kind of guy, seriously, we’ve got more important things to worry about than that, but okay, so Okay, well, that’s interesting. So tell me what what is what does that mean for you? So what makes me feel like I’m not wanted here? Oh, why is that? Because everybody else got that? I want to Copic Okay. Gosh, didn’t Ross was that important? Okay, cool. So, the issue is, you don’t feel like you’re actually part of the team and part of the team long term. Yeah, absolutely. Okay. Now we can discuss to solve it. There’s more than one solution to that problem, right? What’s the obvious solution? For name monocarpic? Yep. What’s the better solution? Take all the names off all the cookbooks because it didn’t really matter where you hung your code. And that meant that actually, you weren’t creating ongoing issues for people thinking they’re more important. I see this with a car parks within car parking buildings as well, right. I understand that maybe the CEO feels like you have a car parked but they’re not there all the time. You Now is another way of actually doing it. So identify it, spend lots of time asking those W questions why, when how, who’s an agent there as well discuss it, think about all the different possible solutions, and then solve it. But the most important thing we haven’t even talked about is, what do you think most was an issues list? Where did most people start? Top of the list? Yeah. The top of the list issue their website rock off track, we could spend our entire time identifying, discussing and solving that, only to find out the bigger issue was actually and he is in the right seat. He is actually our biggest challenge right at the moment. So when we do our issues is it’s really important that rather than starting at the top, we actually go what are the top three issues, and we discuss them in that order. And therefore we run out of time discussing issue number one, it’s okay, it was the most important issue. But if we do start from the top and start on that website, rock of tracking, that was a really minor issue, we’re going to have some challenges there. Okay, that’s issues issues. Just just working through this in your level, 10 minutes can make a huge difference in the way the business actually runs, and 100% stronger as we’re actually looking at all these issues, short term and long term, and solving them either in our weekly level 10 meetings, or our quarterly meetings with our team process. Two things to process. First of all, we need to document our processes. So we call documented.
And the second thing is followed by all now documented, does not mean having an SOP manual that is this big, that nobody ever looks at, when I bother to follow. We tend again, as humans to want to overcomplicate everything, and have everything 100%, right? We talk about using the Pareto Principle, where we literally will say that we know that 20% of our processes will give us 80% of the results. So we’re talking about core processes, what are the five to 13 core processes in your business, that relate to the different areas of the business, HR, sales and marketing operations that need to be followed for us to actually get the most result. And there’s some tools there that will just make it simpler, but it’s really about us making sure we’re really clear about what they are. And here’s an example. So we’ve got people marketing, sales, operations, customer service, accounting, that’s our business, right. And we document and simplify them, we just literally go through and go right, here’s a table of contents, these are our core processes, we document them in a very simple way. So as a people process, if we want to hire somebody, we identify the need, we define the seat, we look at hire, you know what we do to hire them, we’ve got a process for onboarding and training, a process for leading managing and holding accountable, are going to process for termination. That is it. And what we say is that we look for every single part of the business, when the leadership team has agreed on what that is. And we want to systemize the predictor. So you can humanize exceptional. And what that saying really means is if you can make it really, really simple, and have the core processes actually documented, followed by all, then they can add a human element to it. We don’t want people going do want fries with that. We want them to make sure that they know what they should be asking. But they can actually add their own personality to it as well. So that is what EOS talks about in terms of process. And the final thing I talk about before we go for our break is around how to sorry, making sure you’re gonna follow it by all there’s a few key things you have to do here. You’ve got to train people. First of all, here’s our core process. This is how we have to do it. Do you understand that? Does that make sense, then you want to measure it, you want to lead management hold accountable, and you want to update. And one of the things that kind of finally struck me after two and a half years of doing this. The reason we do this with a core processes first of all, is because a they produce the most results. But B they’re not going to be right, they’re going to have to change all the time. If we try and document everything. But we’ve documented everything, it’s already moved and changed. So we need to actually focus on the core stuff first, get it up and running. And then we can start to do more after that has been done. Okay. Finally, traction. There’s two things that exist here and traction, we’ve got the rocks, we’ve got the meeting pulse. I’m gonna come back to the meeting posts later on today, because that’s really, really important. But the rocks is really where everything starts. So the there was a tendency, again, that we want to do a whole lot of things, right. We’re very driven people, we’re very motivated, want to get a whole lot of stuff done.
The idea behind rocks is what is the most important things that absolutely have to get done? How do we have that laser sharp focus the next 90 days on what needs to be done, and everybody in your organization needs to have those rocks to understand what needs to be done. So in the process we’re going to work through in the next session, we’re gonna think about, you know, what are those rocks, what are the key things, and I was working with a client the other day who has worked with another business coach before they came to me, and I said, I said what What’s your plan for the year? So we’ve got 43 objectives want to achieve? However, I was like, oh gosh, I’m I’m pretty smart and I’m pretty onto it, but I couldn’t do 43 It’s taken me we do it. We actually obviously live and breathe our own stuff. It has taken me two years to finally get to a place where I’ve done all my rocks for the quarter last quarter. And that’s cuz I finally only got four because every other quarters, I can do seven. I can definitely do that many I can’t, I can do four. That’s the reality. So you know, less is more Vega are better. It means that you know, less but better. We’ve got to make sure that we are absolutely laser sharp focus on what needs to be done.
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Debra Chantry-Taylor
Professional EOS Implementer | Entrepreneurial Leadership & Business Coach | Business Owner
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