Does data drive your business?
Posted on 20th June 2019 at 08:22
Article 3 of 6 about The EOS Model™
A successful business cannot run on guesswork and emotion. You need to work out your essential metrics, take responsibility for them and focus on improving them.
What is data?
Many businesses say they are data-driven, but are they really? To be a truly data-driven business, you need to cut through all the opinions, personalities and egos vying for influence at the top of your organisation. You need to take out the conflicting emotions you feel as an entrepreneur when you think things are going amazingly well, or badly. Finally, you need to eliminate guesswork from the way you make decisions.
In EOS, this means breaking down your business to its lowest terms; a handful of numbers that tell you how your business is performing. We call this strengthening the Data Component.
How to strengthen your Data Component
We help you strengthen your Data Component by opening the EOS Tool Box and pulling out a simple Scorecard.
Firstly, identify your Measurables. These are 5 to 15 numbers that give clarity on how your business is performing. Measurables differ between companies and industries, but they could include:
Number of leads generated
New sales calls made
Errors in manufacturing process
Next, you must decide who is going to be accountable for each Measurable. Write their name next to the Measurable on your Scorecard.
The next step is to create a goal number for each Measurable. After all, if you don’t know what the target is, how will you know if you have achieved it? Think about the numbers you need to hit to feel like you’re on the right track to hitting your monthly, quarterly and annual goals.
Use your Scorecard to stay on track
The EOS Scorecard shows you 13 weeks of results at a time, so you can easily see how patterns and trends are developing. It is an easy way to check that your business is moving in the right direction. Plus, if anything is going wrong, you can identify it at an early stage and talk to the person who has responsibility for that specific Measurable.
After we have created our first Scorecard which oversees the whole business, we recommend you migrate this procedure through your entire organisation. Give every team a Scorecard, with their own Measurables and areas of personal responsibility on them.
Accountability is essential
The keys to making Scorecards work in a business is accountability; someone’s name next to a specific Measurable.
This accountability gives a sense of trust and responsibility to whoever holds it. They think, 'I am responsible for that number and keeping it on track every week.' They will do their best to make sure they hit their goal number because they don’t want to look bad in front of their colleagues. If they are not going to hit their number, they will likely ask for help.
On the other hand, when they hit that number, they get a sense of satisfaction. They can see how their personal effort is helping to drive the business.
These are the two tools and disciplines we use at EOS to strengthen your Data Component.
Measurement = management
Focusing on the numbers in this way means you always know the direction your business is travelling in. You have evidence, not just the word of the person in your leadership team who can tell the best story.
Now you have your Vision in place, the right people in the right seats and a strong Data Component, the next step is to start 'smoking out your issues'.
Over to you
If any of this resonates with you, let’s get together.
To find out if you have the right people in the right seats, or more about EOS, please contact me to schedule a free 90-Minute Meeting with your leadership team and an EOS Implementer. If this seems premature – we get it. We’re entrepreneurs, too.
Please know, this is NOT a high-pressure sales pitch. It’s just the simplest, best way for you and your team to connect with an EOS Implementer for a detailed overview of the system, the tools and the process.
There’s no charge for this meeting, and no obligation. It’s a valuable learning event that will answer all your questions and fully equip you and your team to decide how best to move forward with EOS (or not).
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