Mastering EOS Implementation for Sustained Business Growth

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We're here to share general knowledge and experiences , not to replace the tailored advice you get from a professional financial advisor or tax consultant . We strongly recommend you seeking individualized advice before making any significant financial decision .

This is Daniel , the founder of Bookkeeping for Painters , and today I'm here with Beth Fahey , Super excited to talk to her about all things EOS and traction , and Beth's career path has varied from working in film to owning a bakery and leading a trade association . In 2014 , she came across Traction , a book that profoundly influenced her life .

Beth successfully implemented EOS in her bakery and later observed similar struggles in other businesses while serving as president of the Retail Bakers of America . This inspired her to become an EOS implementer full-time , leveraging her firsthand experience with EOS to assist others .

Beth has witnessed the positive impact of teaching EOS across different industries on leadership teams and their employees . Alongside Renee Boer , she co-created the Great Boss Workshops , where she now leads sessions for bosses in the EOS community .

Beth is dedicated to nurturing environments where exceptional leadership can thrive , so I'd like to give a warm welcome to Beth . Welcome to the podcast .

And so , you know , that's kind of how I ended up owning a business , and you know , we did great in the first few years that my sister and I had the bakery . We started as a two-person operation and just kept adding more and more people as we grew and we honestly doubled year over year for like six years running .

So we ended up going from like a $200,000 revenue business to a $2 million revenue business in under 10 years , and that growth was like significant . Well , you know , as you said , at the beginning I worked in film before I owned a bakery , and so you know , I went to film school . I didn't have an MBA . I kind of felt like I was out over my skis .

I didn't really know what I was doing as a business owner . But you know , you're you're just plugging along and reading everything that you possibly can in order to get better . One of the books that I was reading was Traction , I think in 2012, . Somebody gave me the book .

What it was for me was a culmination of all the best business ideas that I had read up until that point , and it packaged it in a very usable holistic system and it it just was a complete . It was one of those books . You know , when you outline a book after you read it or as you're reading it , you know that it's landing for you .

And that's kind of how I went through traction and I see my clients come in and they've got , you know , all these dogged pages and post-its sticking out of their books and everything .

Because it just really resonates with people , because it's it just hits the stuff that's frustrating you so much , which is usually people or process , and if you can get that right , you know that's where the magic is right .

So that's kind of how I came into EOS and and for anybody listening , that's on this same sort of entrepreneurial journey just let people know that they're not alone , because you know you feel like maybe you're crazy or maybe it's you , that the reason that the business is a problem or there's problems in the business , but almost everybody struggles with the same

stuff and that's what I think traction and you know , the entrepreneurial operating system just address so well , is this shared frustrations that we all kind of have ?

So it's not like some business books are kind of heavy on the theory and it gives you good ideas , maybe , but you're still it's left to you on how to how to actually implement it . This is like no nonsense book as far as like this is exactly what you do and how you do it and which . What should it look like ?

As like this is exactly what you do and how you do it and what should it look like . So it's so practical . Because there's another book called Scaling Up , which is also a great book and it has a lot of great ideas in it , but it's just not as easy to implement .

It's not as straightforward as I feel like traction is more boiled down to give you like here's exactly what you need to do . So that's one of the things I love about this book what you know , as you've helped folks , I guess could you give us like kind of like a rough sketch of what is this book actually telling us to do , like what is the EOS system ?

What does that actually ? What does it have in us to do ? What is the EOS system ? What does that actually ? What does it have in us do ?

It's not software although there is software for EOS so that you can run your business on EOS . It's not software . It's more of a philosophy and a way of approaching things by using very simple , practical tools that are going to help you do three things that we call vision , traction and healthy .

So vision from the standpoint that everybody in the organization sees the vision clearly and is focused on how to get there . Traction is coming from the standpoint of all of your leaders are more disciplined and accountable and they're really executing on that vision .

And then healthy just means that you've got a healthy , functional , cohesive leadership team that's really working well together , because we find most of the time , leadership teams or leaders in organizations small to mid-sized businesses they're not really working together in a healthy way .

There's a lot of ego , sidebars , politicking , all that kind of stuff , and what EOS does is it essentially shines a spotlight on things you can't hide when you're using the EOS tools .

So we have these very practical tools that are going to help you essentially get what you want from your business , and so what I do as an EOS implementer is I work with small to midsize businesses , those leadership teams , and help them implement the system , and by using an implementer , it usually helps things go a little faster .

And part of what my job is is to ask the tough questions . You know the questions that people , you know everybody knows what the issue is , but you know I can be the dummy in the room and just say , hey , you know , do we have , is this an issue ? The dummy in the room and just say , hey , you know , do we have ? Is this an issue ?

And what that does is it gets people actually talking about it and moving to solve it , which is really the point , and that's why EOS as an operating system just really helps you get the results very quickly , especially , you know , the more you adhere to using the tools , the foundational tools like the vision traction organizer , the accountability chart , rocks ,

meeting Paul's scorecard . By using all those things and really leveraging those tools within your organization , you're going to achieve your vision probably faster than you thought you might , and at least that's what I see happen with my clients .

a million in revenue or something like that , so we already had a team and so it was a little bit . Anytime you're doing change , as I'm sure you know , is like very difficult for the team to to to accept change . So there was definitely a rough period and we didn't have anybody to guide us .

We're kind of basically just using the book , so it would have been helpful for us to probably have you at that point . But are there some some things that you know as a business that's implementing EOS into their business ?

Are there things to look out for , common mistakes , pitfalls , anything to look out for as they're trying to implement this into their system ?

And just to set the record straight , nine out of 10 people that are using the EOS tools are self-implementing . So you know only a 10th or 10% of people that are , you know , really actively using EOS are using an implementer . The advantage of using an implementer is you'll just go faster , you know and you'll be . You have that outside person in the room .

So you know you have to decide , you know , based on your budget and things like that . But the thing that I would recommend to anybody that's self-implementing or just starting to get their feet wet with the tools is don't cherry pick the tools . Don't just do level 10 meetings and not do your accountability chart or not . Do rocks .

And that's what I find , especially when I encounter a team that's been self-implementing for a while . They'll just do one or two , you know , maybe a couple of the tools . They're not using everything . The other thing that I see is mixing operating systems . So you mentioned scaling up before . There are lots of operating systems out there .

You know EOS isn't the only one . I like to think it's the best one because it's holistic and it's designed for small to mid-sized businesses . But if you start pulling , you know something from scaling up , something from great game of business . It's , it doesn't . It's not designed to work together . Where EOS is , it's the whole enchilada .

You know , it's everything . So if you just trust the process and use the tools , you'll be great . And sometimes you know the simplicity of the tools . People that are natural born complicators think it can't be this easy , it can't be this simple .

But the design is genius because it is so simple and because there are certain things that are pretty black and white . So , for example , you know when you're assessing , does somebody belong in a seat ? We have this tool called GWC , right , gets it , wants it capacity to do it , and we're looking for a yes or no answer on that .

So that's the black and white of EOS , and you know . And a weak yes is really a no . So so I mean , like using the tools in the way that they were intended , without overengineering them , would be my main recommendation .

We went way over , like I think the recommended amount was somewhere between three and five , I believe I'm not getting that wrong , but we had like seven or some ridiculous number yeah and because we thought we're like , yeah , let's make it really good and but nobody could remember the core values we just had too many . So it's like pointless .

Uh , I couldn't even remember all of them . Yeah , so it's just like you're're exactly right , like you just need to . These things seem simple , like coming up with three core values or five core values , or you know . You know having a certain set of measurables . You know you want to keep it to only the essential measurables .

You don't want to have like a thousand measurables , keeping it as simple as possible , because that just makes it easy for your team to remember your core values so they can actually make decisions based off of them . But yeah , it does seem simple in the book , I agree , but trying to keep it as simple as possible .

Definitely , we've had to learn that we didn't keep it simple in the beginning , but then years had to learn that , like we didn't keep it simple in the beginning , but then you know years later like , okay , let's keep it the three core values , so people actually remember what , what , uh , what our business is about , um , so that makes complete sense and uh , and

then actually adopting the whole , the whole uh eos system and not just like trying to share a pick . We didn't do that . I think we did a decent job .

I would say we didn't actually follow the recommended way to roll it out and that was a mistake , like we , because I run the business with my wife and we kind of just we didn't get enough buy in the beginning and we had some pushback on the on the change , so that was a mistake on our end .

So I think that part we skipped a little bit of on the actual first implementation . So , um , that was a learning thing for for us . That that was something we actually made that mistake too . So we did all the mistakes you're saying , I think .

But yeah , that's some really good advice there on how to actually implement and not fall into those common pitfalls there . What part of I guess what kind of results ? Or you know you said it can be implemented pretty quickly . What do you see with the folks that you work with , like ?

Are they starting to see like tangible results in their business after like three months , a year ? You know ? What kind of results have you seen ?

Initially , I know for me and my bakery business , I was really concerned about profitability , because we were it was clear that we were going to be unprofitable pretty soon .

When we started the system and that's usually when I meet people is when they're when they know they've got to change that what they're doing currently is either going to tank the business or ruin relationships , you know , or something , and so it really just depends on what you want to address first .

For us , addressing the people issues , especially the people that didn't fit our culture , that were on the leadership team , that was the biggest bang for the buck , and I would argue that it continues to be the biggest bang for the buck for any client of mine , and everybody's so afraid to make the changes when it comes to people , because you know you get caught

up in loyalty or how long somebody's been with you or their work ethic , or you know there's a million excuses that you can make for keeping somebody that doesn't fit . And so we have two ways of determining fit . The first is whether or not somebody is a core values match , meaning that most of the time they exhibit the behaviors that you want to see .

You know . So in my bakery our core values , for example , were make the next person successful , go the extra mile , generate positive energy and act with reputation in mind . Those were our four

. We were very service-oriented organization and very employee-centric , so those core values really worked for us , and whenever we had somebody that didn't fit those core values , they kind of stuck out like a sore thumb and what ended up happening is people like that turn into a cancer in an organization and they can actually ruin your entire culture .

One person it's kind of like you know , a bad apple spoils the whole bunch , kind of idea . And so you know , what we did initially was deal with those issues that we had . You know , the right people , the core values issues , right seat . Now that's really about our people performing well . Are they doing what we expect of them in their seat ?

And that's what I was talking about with gets it , wants it , capacity . That's the measurement for that , and so by getting really clear about whether or not somebody is doing well in their seat , that in and of itself will have an enormous impact on an organization . But you , you , but you just have to be serious about it and not um , and be decisive .

To be quite honest , you have to just be decisive and it will change . You know , a culture can change for the good overnight when you rid yourself of people that are , you know , kind of working against you .

So , yeah , I mean making those people moves , and that's where EOS gives you the tools so that you can assess and have honestly carefrontational conversations with people . You know you care about them , you want them to get where they need to be , but some people just can't and we have to start having those conversations . Then the other thing is process .

I mean , that's the other big .

You know , eos is a process right , so you're implementing a process in your organization , but you're also working on the processes in your organization , trying to get those things done in a repeatable way so that you can grow and scale your business and so that you don't have to worry that people are doing things the right way each and every time .

And so by focusing on people in process , you are going to make a huge impact , you know , impact on your organization . But that's only two of the six key components . I mean people process . We also focus on data , vision and traction , as well as getting your issues solved .

So those six things , really , you know again the simplicity of the system , really you know , again , the simplicity of the system .

And even the person that did sell iPhone , steve jobs , was like he was big on having the A team in place , getting the right people in his organization and the right seats . Uh , and he would , he would .

I think he , at one point , steve jobs , was saying like when you're , when you're a smaller business , it's even more only had four people in your organization , well , if one person is not the right person or not in the right seat , that's like 25% of your business now is like bad . Yeah , your customers are experiencing that pretty directly because .

So it's even more important for , like , the smaller businesses , you know , even though we're not Apple , you know we don't have thousands of employees , we have , you know , tens of employees .

If that , it's even more important to be focused on getting the right people in the right seats , because what our employees are doing is going to have such a huge impact on on our customer experience and the value that we provide . So I I think you're . You're spot on with starting with the people .

Uh , getting that right , cause that can , that can definitely screw things up pretty , pretty quickly . Yeah pretty quickly . Yeah , um , you mentioned the , the , you know the people , the process , and then the , the data component . Uh , and could you talk about that a little bit , because you know , um , that might be a scary .

Like you know folks like , uh , data don't I'm not good with math Like , could you go through , what is that actually talking about ? That ? That data component ?

The first is to have a scorecard , one at the leadership team level or at the department . You want to have definitely one at the leadership team level and preferably one for every department . Now , if you're just a four-person company , one scorecard is probably fine and five to 15 measurables on that scorecard .

So a measurable is just a number that you , one of the employees of the organization , are accountable for keeping on track week over week . And what a scorecard does is it looks at 13 weeks of history at a glance and why this is so helpful , particularly if you're in a seasonal business or whatever kind of business that you're in .

Any sort of blip on the scorecard should kind of get you to pay attention to what that means . Now , sometimes it's just a blip , it's a one week , you know the number is going to be off , and so there is a goal for every measurable and every week you know , but it's just five to 15 numbers .

So , for example , in my bakery you know average ticket price that was an important number for us . Cash in the bank that was an important . Now , those are lagging numbers , but other things that were helping us predict the future . That's kind of what you want to think about when it comes to a scorecard .

How do we predict that we're going to have a great quarter ? Well , how many wedding cake consultations are you having ? The more consultations that you're having , the higher the likelihood is that you're going to book them right . And if you keep your conversion rate a certain rate , you can track that and so on .

So what a scorecard does for you is just help you predict the future , so that when something's off , you're talking about it immediately rather than waiting for your quarterly financials to come in and you say , oh my gosh , what happened in Q2 ? So this way you can adjust and adapt a lot more nimbly and get ahead of it .

And then actually consistently tracking it and going through it and and , like you said , going through those numbers . But once you get into the , the groove of it , it's actually , from my perspective , it's pretty easy , especially with your team involved .

It keeps them on track with what the they should be hitting and once you get in the groove , it's , it's very um , don't even notice it anymore , like that's just a thing .

I mean , I don't I'm making assumptions here , but the people some people thought that because we were keeping numbers on a scorecard , that we were , it was big brother or that we were looking over their shoulder or whatever . The thing is is that I found accountable . People love to be held accountable .

So if you've got a level of accountability in the organization , they shouldn't have any problem reporting back what the numbers are week over week . And it also , you know , it just keeps things . Everybody starts to then understand how the business works as opposed to it all just being in your head as the owner . Right , it gets that sort of ownership thinking too .

So , yeah , there's tons of advantages to the scorecard and , again , super simple tool 5 to 15 measurables everybody's got a number you mentioned accountability and uh what , and you we were talking before the podcast you have this acronym , lma leading managing accountability .

So if you can imagine the seats in an organization and how you're structured and what the reporting looks like In a typical company , an org chart is just titles and it shows reporting , but an accountability chart shows the accountabilities , the five main things that people are accountable for , and so , as bosses , we have this thing called LMA leading , managing ,

holding people accountable . That's the first bullet point in our seat on an accountability chart and what that means and all the stuff that goes into LMA . It's hiring , it's training , onboarding , coaching , mentoring , career development and eventually exiting people out of an organization . So it's a big bucket , but that's how we keep things on an accountability chart .

We want to have accountabilities , not tasks , and so that's why we don't put training , coaching , mentoring , I mean , otherwise the seat would be ginormous , right ? So we want to simplify by just calling it LMA .

In their seat . What that means is they're responsible for making sure things happen in their department . They have to have the tough conversations . They have to , you know , provide the necessary tools for people . They have to assess the team and when there's a stress crack , you know , do we need to add another seat to the accountability chart ?

And it's all about setting clear expectations of your direct reports . It's about you know having the conversations .

We have this thing called a quarterly conversation as part of how we train people with LMA five leadership abilities , five management abilities and part of the training that I do as an implementer is walk people through an assessment to see where they are at . And this is all outlined in the great boss book .

You know how to be a great boss , about really assessing . You know where where the gaps are because , honestly , the journey of being a great leader and manager , it first starts with you . You have to kind of look at yourself and say where am I getting in the way or what could I be doing ?

And a lot of times , depending on how you grew up or what your parents were like or you know what generation you're in , a lot of us have misconceptions about what being a great boss or being a boss is . We think it's about you know command and control , but that's not how you actually get the most out of people and make it a great work environment .

So , you know , thought leadership is changing on that , but it's slow to change . But EOS is absolutely , you know , ahead of the curve as far as thought leadership on on modern leadership .

What , what are those things like that are that are empowering folks to to work with them ?

The five leadership practices are really about you as a leader , and a lot of people have this idea oh , I'm more of a leader than a manager , or I'm more of a manager than a leader , and the thing is , you kind of have to be both .

You have to be both a leader and a manager , and so being a great leader means that you're creating an opening right , and creating an opening is like a seat on the accountability chart or it's the vision for the organization . You have to be able to translate that . The second thing is that you're providing the necessary tools .

Are you providing the resources , the training , the technology and your time ? Are you giving people your time ? Um , are you delegating and elevating Meaning ? Are you letting go of some stuff ?

A lot of us who are bosses , we hang on to things way too long and we don't really need to , and then , um , so getting really clear about what you need to hang on to and what you can let go to somebody else , that is huge . So delegating and elevating , you know , having the time to actually think and to have quarterly conversations with people .

That's more in the management side of things , but taking clarity breaks for yourself so that you're actually keeping your confidence in check and really making sure that you're thinking and working on the business . So that's leadership . Management , on the other hand , is about keeping expectations clear of your direct reports .

It's about communicating well , making sure that you're communicating both sides . It's about working for the greater good of the organization . It's about having quarterly conversations with your direct reports and , lastly , it's about rewarding and recognizing .

I mean that's all covered in the how to Be a Great Boss book , which is an awesome book Again , a very simple approach to being a great boss and it is designed to work with our EOS tools , but you could read the book independently of EOS and still get a ton out of it .

That's helpful , cool , well , where can folks learn more about you either ? Reaching out to you as an EOS implementer . How did how did they get ahold of the great boss book ? How can folks reach out to you ?

But , for anybody that's listening to this podcast , if EOS sounds like something that you want to pursue , obviously first read Traction . That might help a lot . But reach out to EOS Worldwide . We actually have a website where there's all of the EOS implementers .

There's over 800 of us around the world that are helping over 200,000 companies get what they want from their businesses , and so there's a lot of us out there and there's probably one in your backyard that you could reach out to .

But you can find me on the EOS Worldwide website as well , so it's just eosworldwidecom , Beth-Fahey , and you can read my profile and connect to me there as well .