Most companies are more complex than necessary. They write lengthy business plans with 27 goals for the year. They create thick manuals full of lengthy policies and procedures for every aspect of their business. And while it’s important to have organization and direction, too many details can be overwhelming and can actually make your company less efficient.
The Entrepreneurial Operating System™ (EOS) encourages you to keep things simple. Simplifying your strategy means streamlining your strategy, rules, processes, systems, messages, vision, and the way they are communicated.
In my previous company, I outsourced some of my human resource responsibilities because we were too small to have an HR staff.
One day I sent them a dress code guideline I had written. I called it a guideline because it was just that – it was comprised of two sentences. First, dress appropriately for the business situation. Second, if you look in the mirror and wonder if it is the right outfit to wear to work, it probably isn’t.
Our HR company turned my two sentence guideline into a five-page policy and procedure, listing every current fashion trend and defining whether it was appropriate for our company. The policy and procedure made my head hurt! So I distributed my guideline and explained it to the entire staff. The guideline worked, and it was simple.
EOS’s processes and tools are designed to help you take the complexity out of your business structure, so your head doesn’t hurt. It uses checklists, visuals, models and acronyms to help you and your leadership team understand and implement concepts that will make your company a success. Like my dress code, it keeps things simple. Here are some ways EOS demonstrates simplicity in its processes:
- Breaking through the ceiling. Less is more is the first step in breaking through the ceiling to expand your business.
- Core Values. Identify between only three to seven Core Values that steer the direction of your company.
- Rocks. Assign only three to seven Rocks to your employees.
- The 20/80 rule. Document 20 percent of your processes that produce 80 percent of the results.
- Company Scorecard. The Company Scorecard is composed of 5-15 carefully selected numbers that serve as the pulse of your business.
The job of your Leadership team is to make everything in the company as simple as possible. It helps everyone understand how the company works, how to help it grow, and how to ensure the best possible experience for employees and customers.
Every time you are tempted to write a five-page policy and procedure, just remember, less is more.
Do you need help simplifying your processes? If so, contact us. We can help.
EOS is a holistic management system with simple tools that help you do three things we call vision, traction, healthy. Vision from the standpoint of first getting your leaders 100% on the same page with where your organization is going. Traction from the standpoint of helping your leaders to become more disciplined and accountable, executing really well to achieve every part of your vision. Healthy meaning helping your leaders to become a healthy, functional, cohesive leadership team.