While my previous two articles on ‘Vision’ and ‘People’ appeal to most everyone, ‘Data’ is a key component of the EOS model that is going to turn quite a few people off. The term alone causes people to picture spreadsheets, interminable slide decks, and breathless reports with buried headlines.
After all, many entrepreneurs are visionaries and visionaries don’t want to have to dive into the granular numbers. They’re big picture thinkers who are prone to following gut feelings and emotions. Much of the time, that has paid off with success in business, so many visionaries see little reason to start engaging with the day-to-day analytics.
However, as any entrepreneur can attest to, leading by gut feeling alone is a great way to strap yourself in to a never-ending roller coaster ride. Exhilarating at first, riding the highs and lows of an entrepreneurial company can quickly make you feel as if you’re going to lose your lunch.
The Data component of EOS is designed to appeal to each person on the team, from the visionary and integrator on down. Data should be simple and effective. You should have a data component that allows each member of your team to make quick, unbiased, and highly informed decisions. A strong data component helps set aside the typical hot-blooded feelings that govern too many entrepreneurial businesses.
How can you do it?
Scorecard and Measurables
From your leadership team to your various departments, develop scorecards that you track and hold your team accountable for each week. Identify between 5 and 15 numbers (also known as measurables) that will tell you where your business is headed on a weekly basis. As you track these big numbers over time, you’ll start to get a clear picture of what’s a blip on the radar and what you need to pay closer attention to.
What activities drive results for your business?
Use individual scorecards to track the activities that you know will ultimately yield results. Take care of those weekly activities and the results will come. This concept works for sales, marketing, finance, and operations. Correctly choosing the leading indicators for the results you want will make your business more predictable and give you peace of mind.
When every person in your company has a number they’re responsible for, it makes it easier to hold individuals accountable and identify when things are off-track before it truly becomes a problem. It encourages higher employee engagement and brings your team together as they help one another stick to the agreed upon measurables.
Tying weekly actions to real results with a scorecard will give your team the keys to better insight and better decision making through data. Data doesn’t have to be tedious. With EOS, data can be a simple, effective tool across your organization.