In order to sustain long-term growth, it’s important for all businesses to develop an internal operating system by which its team members can organize their energy. It’s a way that people inside the organization can meet, solve problems, clarify roles, and plan for the future. EWA utilizes EOS, or Entrepreneurial Operating System, for these purposes. You may be wondering why a firm needs an operating system? In short, if everyone within an organization is doing things their own way it doesn’t work. EOS can help eliminate multiple methodologies and avoid potential conflicts before they happen.

EOS is comprised of six components: vision, people, data, issues, process, and traction.

Vision – The firm’s vision defines who the organization is, where it is going, and how it will get there. It helps give the team a clear picture as to short and long-term goals, important firm values, and what drives decision making processes. Under EOS, firm’s review their vision in a weekly meeting to keep the team focused on the same goals and strategies, while also ensuring that decisions are being made with the firm’s ultimate vision in mind.

People– The people component of EOS helps build a productive team by ultimately putting the “right people” in the “right seats”. The right people are those who are aligned with the firm’s vision and values and who are motivated to reach their goals and contribute to the success of the team. The right seat means getting everyone in a role where they can best contribute to the team’s overall success– while ultimately being fulfilled in their work. GWC is the acronym used to make sure you have the right team member in the right seat: “get it, want it, and have capacity to do it”.

Data– Firms use data to build and informed, objective picture showing where the firm is going and what it needs to do to accomplish big goals. One source of data is the “Scorecard”. At a glance, the Scorecard gets the firm on the same page as to how the firm is doing and progressing towards goals throughout the year. When implementing EOS, the Scorecard is reviewed in the weekly meeting so that the entire team has a pulse on firm progression towards goals and issues that need identified.

Issues– Issues are items that are noticed by the team that need improved, fixed, or changed to make the firm better. They can include anything unresolved that needs to be discussed such as problems or opportunities, or new and better ways to complete tasks. Issues are approached using the IDS process: Identify, Discuss, then Solve. In each weekly meeting under EOS, the team will first identify an issue at hand. Then, after the entire team is up to speed, the firm will discuss the potential solutions as a group. Once this has taken place, the issue can be labeled as solved by designing an action-based solution and a due date for expected implementation. This process can take between twenty and thirty minutes on occasion, but it’s vital to have everyone’s feedback in order to come to the correct conclusion.

Processes– Imagine a company where leaders manage projects in different ways– with no standard processes in place. Following the same processes saves an incredible amount of time, eliminates frustration, and helps team members perform their job with fewer mistakes, delays, and communications. It’s important for the firm to document all of its core processes– to maintain retention of knowledge for existing employees and also as a reference for all new employees. By systemizing all predictable tasks, firm leaders can better prioritize their time to focus on more big picture goals and objectives. Consistent processes also enable organizations to grow and scale operations.

Traction-The Traction component of EOS revolves around execution and discipline. Having a weekly meeting dedicated to ensuring Traction is a cornerstone in incorporating EOS. Some agenda items in a typical weekly Traction meeting can include: resolving issues, reviewing the firm vision, goal tracking, updating the firm Scorecard, and any To-Dos for respective team members. A weekly meeting dedicated to Traction allows the team to get on the same page and ensure a “one-ship” mentality for team members working towards common goals.

The expectation is that every team member buys into EOS fully. Adopting the “one ship” mentality enables team member to better reach their potential and be more engaged in firm goals. With a proper organizational system in place, it is far simpler to maintain an engaged and dedicated team.

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Equilibrium Wealth Advisors is a registered investment advisor. The contents of this article are for educational purposes only and do not represent investment advice.

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