traction-eos

What this skill does

# Entrepreneurial Operating System (EOS)

A complete system for running a business with six key components. Designed for entrepreneurial companies ($2M-$50M revenue, 10-250 employees) that want to align vision and execution.

## Core Principle

**Most businesses suffer from the same core issues: people, vision, traction.** EOS provides a simple, complete operating system that strengthens the Six Key Components of any organization.

**The foundation:** Great vision without traction is hallucination. Traction without vision is aimless. EOS connects the two through a practical, weekly operating rhythm.

## Scoring

**Goal: 10/10.** When evaluating or implementing business processes, rate 0-10 based on EOS component strength. A 10/10 means all six components are strong, meetings are productive, and quarterly rocks are consistently achieved; lower scores indicate gaps. Always provide current score and improvements to reach 10/10.

## The Six Key Components

```
Vision → People → Data → Issues → Process → Traction
```

Every business is built on these six components. EOS strengthens all six.

### 1. Vision Component

**Question:** Does everyone in the organization know where you're going and how you plan to get there?

**Tool: Vision/Traction Organizer (V/TO)**

The V/TO answers eight questions on two pages:

| Question | What It Defines | Example |
|----------|----------------|---------|
| **Core Values** | 3-7 non-negotiable beliefs | "Own it", "Do the right thing", "Grow or die" |
| **Core Focus** | Purpose/cause/passion + niche | "Simplify small business" + "Cloud accounting" |
| **10-Year Target** | Big, hairy, audacious goal | "$100M revenue" or "10,000 customers" |
| **Marketing Strategy** | Target market, 3 uniques, proven process, guarantee | Who you serve, why you're different |
| **3-Year Picture** | What company looks like in 3 years | Revenue, profit, headcount, key metrics |
| **1-Year Plan** | Revenue, profit, measurables, goals | Specific targets for this year |
| **Quarterly Rocks** | 3-7 priorities for this quarter | The most important things to accomplish in 90 days |
| **Issues List** | All unresolved obstacles | Problems, ideas, opportunities to discuss |

**Process:**

1. Leadership team completes V/TO together (2-day off-site)
2. Share with entire organization
3. Review quarterly
4. Update annually

**Key insight:** If leadership team can't agree on V/TO, you have a bigger problem. Alignment comes first.

See: [references/vto.md](references/vto.md) for V/TO templates and exercises.

### 2. People Component

**Question:** Do you have the right people in the right seats?

**Tool: Accountability Chart**

Not an org chart—an accountability chart. Defines the structure and who owns what.

**Structure:**

```
Visionary ←→ Integrator
              ├── Sales/Marketing
              ├── Operations
              └── Finance
```

**Two key roles:**

- **Visionary:** Big ideas, culture, key relationships, creative problem solving
- **Integrator:** Runs business day-to-day, manages team, executes vision, resolves conflicts

**Rule:** One person per seat. No shared accountability.

**Tool: People Analyzer**

Evaluate every person on two dimensions:

**1. Right Person (core values fit)**

| Core Value | + (most of the time) | +/- (sometimes) | - (rarely) |
|-----------|---------------------|-----------------|------------|
| Own it | + | | |
| Do the right thing | | +/- | |
| Grow or die | + | | |

**Standard:** Must be "+" on all core values. One "+/-" is a conversation. Any "-" is wrong person.

**2. Right Seat (GWC)**

- **G**et it: Understands the role
- **W**ant it: Genuinely wants the role
- **C**apacity: Has the mental, physical, emotional capacity

**Must be "yes" on all three.** If missing any one, wrong seat.

**The formula:** Right People + Right Seats = A-players

**People decisions:**

- Right person, right seat → Keep and invest in
- Right person, wrong seat → Move to right seat
- Wrong person, right seat → Coaching/exit (hardest call)
- Wrong person, wrong seat → Exit immediately

See: [references/people.md](references/people.md) for accountability chart and people analyzer templates.

### 3. Data Component

**Question:** Are you managing based on objective data, or subjective opinions?

**Tool: Scorecard**

A weekly report card of 5-15 numbers that tell you how the business is doing.

**Scorecard rules:**

- Activity-based metrics (leading indicators), not results (lagging)
- Weekly numbers (monthly is too slow)
- Every number has an owner
- Every number has a goal
- Red/green: on track or off track

**Example Scorecard:**

| Metric | Owner | Goal | W1 | W2 | W3 | W4 |
|--------|-------|------|----|----|----|----|
| Revenue | Sales Lead | $50K/wk | ✓ | ✓ | ✗ | ✓ |
| New Leads | Marketing | 100/wk | ✓ | ✗ | ✓ | ✓ |
| Demos Completed | Sales | 20/wk | ✗ | ✓ | ✓ | ✓ |
| Customer NPS | Support | >50 | ✓ | ✓ | ✓ | ✓ |
| Cash Balance | Finance | >$200K | ✓ | ✓ | ✓ | ✓ |

**Benefits:**

- Spot problems 2-4 weeks earlier
- Reduce "gut feeling" management
- Create accountability without micromanagement
- Everyone knows the score

**Metric selection:** If you had to go on vacation for 4 weeks, what 5-15 numbers would tell you how the business is doing?

See: [references/data.md](references/data.md) for scorecard templates and metric selection.

### 4. Issues Component

**Question:** Are you identifying, discussing, and solving issues quickly?

**Tool: Issues Solving Track (IDS)**

**I**dentify → **D**iscuss → **S**olve

**Step 1: Identify**

- What's the real issue? (Not the symptom)
- Ask "Why?" until you reach root cause
- State the issue in one sentence

**Step 2: Discuss**

- Everyone gets input (not equal time)
- Tangents are stopped
- Focus on the ONE issue
- Time-boxed (usually 5-15 minutes)

**Step 3: Solve**

- Decision is made
- Action items are assigned (who + what + when)
- Move to next issue

**Three types of issues:**

| Type | Examples | Action |
|------|----------|--------|
| **Problems** | Customer churn, team conflict, system outage | IDS → solve |
| **Ideas** | New feature, process change, market opportunity | IDS → decide (yes/no/later) |
| **Obstacles** | Blocking a rock, resource constraint, dependency | IDS → remove or escalate |

**Issues list rules:**

- Everyone can add issues
- Prioritize: most important first
- Not all issues get solved every meeting
- Unsolved issues carry forward

**Common IDS mistakes:**

- Discussing symptoms, not root cause
- Rehashing same issue every week
- No clear action items
- Too much discussion, not enough solving

See: [references/issues.md](references/issues.md) for IDS facilitation guides.

### 5. Process Component

**Question:** Have you documented and consistently followed your core processes?

**Tool: Core Process Documentation**

**The 20/80 rule:** Document 20% of your processes to get 80% consistency.

**Identify core processes:**

- HR process (hiring, onboarding, reviews)
- Sales process (lead → close)
- Operations process (delivery, fulfillment)
- Customer service process (support → resolution)
- Finance process (invoicing, collections)

**Documentation format:**

1. Name the process
2. List 5-20 major steps
3. Add just enough detail (not a 50-page manual)
4. Make it visual where possible

**Example: Sales Process "The Closer"**

1. Qualify lead (BANT: Budget, Authority, Need, Timeline)
2. Discovery call (30 min, use question guide)
3. Demo (customize to their pain points)
4. Proposal (send within 24 hours)
5. Follow up (3 touches in 7 days)
6. Close or disqualify

**Followed By All (FBA):**

- Document it
- Train on it
- Measure compliance
- Update quarterly

See: [references/process.md](references/process.md) for process documentation templates.

### 6. Traction Component

**Question:** Are you executing on your vision every day?

**Two tools: Rocks and Level 10 Meetings**

#### Rocks (Quarterly Priorities)

**Definition:** The 3-7 most important things to accomplish in