Mike Paton on The Entrepreneurial Operating System
Today, I am talking with Mike Paton. Paton helps lead over 200 EOS Implementers and has conducted more than 1000 full day EOS sessions with leadership teams of more than 100 entrepreneurial companies.
He’s spent a lifetime learning from entrepreneurs, and spends all of his time as an author, award winning speaker, certified EOS Implementer and the visionary of EOS worldwide.
Specifically, Paton helps entrepreneurs clarify, simplify and achieve their vision by mastering some simple concepts that we’re going to go over today.
In our chat today, we’re going to cover what exactly the EOS Methodology is, why it’s so popular, and how you can use this strategy to build a better property management business.
- (01:10) – Entrepreneurial Operating System (EOS)
- (01:18) – Mike explains what EOS is.
- (02:02) – The background and history of EOS.
- (03:20) – What the average company looks like prior to using EOS.
- (03:31) – Mike explores the five frustrations common to entrepreneurs.
- (04:08) – People.
- (04:41) – Lack of control.
- (04:51) – Lack of profit.
- (05:03) – Hitting the ceiling.
- (05:26) – ‘Nothing’s Working’.
- (03:31) – Mike explores the five frustrations common to entrepreneurs.
- (05:56) – Mike shares what he feels is unique about entrepreneurs.
- (07:24) – Discussing the vision component of EOS.
- (09:31) – The six key components every business must focus on strengthening.
- (09:51) – Vision.
- (12:59) – People.
- (15:23) – Discussing common complaints.
- (17:50) – The job of a leader.
- (18:49) – How an EOS company looks from a staff’s perspective.
- (09:31) – The six key components every business must focus on strengthening.
- (21:17) – How the EOS system structures its meetings format.
- (21:27) – Using ‘Leadership Team Scorecards’ or ‘Company Scorecards’.
- (23:04) – Reviewing priorities, or ‘Rocks’, for the quarter.
- (23:33) – Accountability.
- (24:48) – Mike responds to the potential pushback and objections to the EOS system.
- (25:20) – The benefits that can be expected.
- (28:55) – The practical steps for implementing EOS in your business.
- (29:39) – Making use of an EOS Implementer.
- (30:37) – The timeframe.
- (31:25) – Tying It Together
- (31:32) – Discussing who EOS is not a good fit for.
- (33:38) – Addressing the fear of looking like a failure.
- (31:32) – Discussing who EOS is not a good fit for.
- (36:15) – Are entrepreneurs born or bred?
- EOS Worldwide
- Traction (01:45) – The EOS library.
- Gino Wickman (02:02) – Founder of EOS.
- Dan Sullivan (11:16) – Influential thought leader recommended by Mike.
Where to learn more:
If you want to find out more about EOS, or get in touch with a professional Implementer, head on over to EOS Worldwide. To organize a remote meeting with an Implementer, contact the EOS Community Builder Manager, Shawn Fayne.
Jordan: 0:00:00.0 Welcome closers, today we have another episode of The Profitable Property Management Podcast coming at you. This is Season Three on profit.
0:00:07.6 I’m your host Jordan Muela, and every week I interview world-class property management entrepreneurs and industry experts who share actionable insights to help you grow your management empire.
0:00:17.1 Whether you manage 100 units or 1000, this broadcast is designed to help you see the big picture, and to give you the tools and tactics that you need to get to the next level.
0:00:27.0 Today, I am talking with Mike Paton. Paton helps lead over 200 EOS Implementers and has conducted more than 1000 full day EOS sessions with leadership teams of more than 100 entrepreneurial companies.
0:00:44.1 He’s spent a lifetime learning from entrepreneurs, and spends all of his time as an author, award winning speaker, certified EOS Implementer and the visionary of EOS worldwide.
0:00:54.8 Specifically, Paton helps entrepreneurs clarify, simplify and achieve their vision by mastering some simple concepts that we’re going to go over today.
0:01:05.0 Mike Paton, thanks for coming on the show.
Mike: 0:01:08.0 My pleasure, Jordan. Thanks for having me.
Jordan: 0:01:10.0 So right out of the gate, I just want to unpack the mystery for those that don’t know. I would say my audience is about half and half, but what is EOS?
Mike: 0:01:18.4 So EOS is an acronym that stands for the Entrepreneurial Operating System. And at its core, it’s just a simple way of running an entrepreneurial company that helps people get clear and aligned around what they’re trying to accomplish.
0:01:35.5 Where they’re going and how they plan to get there.
0:01:38.5 Instill focus, discipline and accountability throughout the organization. That’s what we call Traction.
0:01:45.1 And create a more healthy, cohesive, functional team of people all working together to achieve that vision rather than the headstrong and talented individual leaders that so often develop inside an entrepreneurial company.
Jordan: 0:02:00.1 Ok. And where does it come from? What’s the background and history?
Mike: 0:02:02.4 Yeah, so this is a system built by a lifelong entrepreneur by the name of Gino Wickman, who saw a sort of a void in the marketplace for development programs built specifically for the people who own and run entrepreneurial companies.
0:02:20.6 When he was running his own family business almost 20 years ago, and he started looking around for tools or techniques or learning opportunities, what he found was a bunch of stuff made for leaders in corporate America and not a lot of stuff that sort of acknowledged the vast difference between the way a big organization operates and feels, and the way an entrepreneurial company operates and feels.
0:02:46.4 So he started cobbling together what we now refer to as EOS, and using it in his own business.
0:02:53.4 Eventually discovered that he loved helping other entrepreneurs get what they want from their businesses, and spent about five years refining and perfecting the system and the complete set of simple practical tools that we teach today.
0:03:08.9 And called it EOS and built a business around it that I’m now very fortunate and honored to be running.
Jordan: 0:03:20.2 So when we talk about the before and after story, what is the before look like? Could you just describe the average business in its state prior to interacting and embracing EOS?
Mike: 0:03:31.7 Yeah. So, most people who own and run entrepreneurial companies – if you shoot them full of truth serum and ask, “Are you getting everything you want from your business?” would answer no.
0:03:46.5 And they would describe a sense of imbalance that seems to be common amongst the people who own and run small businesses, where they invest a lot more time, money, energy and wellness than what they’re getting in terms of those ingredients and return.
0:04:08.4 And so, we call that symptomatic of the five frustrations common to entrepreneurs. And so, they are people – so most entrepreneurs are frustrated with their people.
And not just their employees, but their fellow leadership team members, sometimes their partners, their vendors, their customers, or for your listeners, their residents, their tenants.
0:04:36.0 You know, nobody seems to get it or want it or care as much as the entrepreneur does.
0:04:41.6 The second frustration is what we call lack of control. A feeling that the business is running you rather than the other way around.
0:04:51.6 The third is a lack of profit. You know, you’re not making as much money as you think you ought to be making. Even how all-consuming the business can be to you sometimes.
0:05:03.2 The fourth is this concept of hitting the ceiling. Of you’re growing – a lot of entrepreneurs will say, “You know, for the first X number of years” – usually the number’s between two and ten, “it all felt even a little bit too easy. We were growing, we were making money. We were having fun. And then all of a sudden, wham, I just hit the ceiling. 0:05:22.1 And I can’t figure out why I’m stuck, but I’m stuck.”
0:05:26.9 And then the fifth frustration is what we call, “Nothing’s Working”.
0:05:29.8 So, you’re trying lots of things, you’re reading books, you’re listening to podcasts and you’re trying to influence the way your company operates, but you can’t find something that really works.
0:05:43.5 And so, those are common feelings or perceptions or you know, operating principals for a small business that’s stuck.
0:05:53.1 And what EOS helps owners and leaders do is get unstuck and break through the ceiling.
Jordan: 0:05:56.6 Yeah man, sounds great. So, what I love about EOS is that it’s geared towards a very unique type of human being.
Entrepreneurs have a really different perspective on the world. And, in many ways, it makes the world go around.
0:06:16.0 What is unique about entrepreneurs from your perspective? If you think about the persona and the set of beliefs and mindsets that this whole program is geared towards.
Mike: 0:06:27.0 Yeah. So, the phrase that I’ve been monkeying around with for the last couple of months, because I get asked that question a lot, is the vast majority of the people in the world view a barrier as a barrier. 0:06:40.2 And an entrepreneur views that as an invitation to greatness.
0:06:42.9 “I’ll show you.”
You know, you want to motivate an entrepreneur, tell him or her, “You know, we can’t do something.”
0:06:51.7 You know, so that’s one of them.
Resourceful, nimble, flexible. Where you need to create something of value before you ask anything in return.
0:07:01.5 Sort of a profound sense of ownership of one’s station in life. Like, I’m going to go change whatever I don’t like rather than looking around at other people waiting for them to change something.
0:07:15.1 So those are some words and phrases I have used to describe entrepreneurs.
0:07:19.4 And, you know, you can tell – I get excited talking about it, because those are the people I like to be surrounded with.
Jordan: 0:07:24.7 Yeah, absolutely. And so, one of the building blocks of the EOS program is around vision.
And that’s what I think about when I think of what is unique to entrepreneurs. Is that there’s a perception and a belief about something that is not yet realized. It’s eventual. It’s palpable.
0:07:42.4 And entrepreneurs are willing to commit and see what others cannot.
0:07:47.3 However, there is a difference between having a gut feel and having a quantifiable vision that can be described in more concrete terms, rally a team around, etc.
0:08:00.4 Talk to me about the vision component of EOS.
Mike: 0:08:02.4 Yeah. And I wouldn’t put a wrapper in our whole conversation before I go into depth about vision, because, you know, what I would also say about visionaries and entrepreneurs is that they are builders, but when your business reaches a certain scale, and for some it’s the second employee, you’re the first. And for others, it’s the 102 employee.
You know, some people are great at building all the way up to an organization full of 100 people, but all of us at some point, reach the point where what our business needs is running a going concern and not building and challenging the status quo.
0:08:46.3 And it is that transition where EOS gives an entrepreneur a framework for making that transition without feeling like you need to sell the company or go on vacation for the rest of your career because those people are doing all that boring work of running a going concern.
0:09:06.0 What I love the most about EOS is it’s a framework for tapping into your unique ability. That’s a Dan Sullivan term. I always want to give credit to Dan.
0:09:14.5 But tapping into your unique ability as an entrepreneur, what you love to do and are best at, and playing that role everyday in your business and trusting other people around you who share your vision to do the stuff that you don’t like to do.
0:09:31.7 And so, when we segue then into talking about the vision component, the framework here is that we believe that great companies, truly great organizations are strong in six key components that every business has, it’s just a question of how weak or strong you are in each of them.
0:09:51.3 And vision is one of them. And vision is just getting everybody – first at the leadership team level, 100% on the same page with where the company’s going, and how you plan to get there.
0:10:02.3 And that’s what you’re talking about, where as the visionary, you need to make it clear, simple and understandable so that people around you can look at it, understand it and make a decision about whether or not they want to be a part of it.
0:10:19.1 Because, what we don’t believe in is trying to convince or strong arm or sell everybody into believing in your vision.
0:10:26.6 What we see in an entrepreneurial company is very few have no vision, if any. Most of them have too much vision.
Everybody has a slightly different view of where we’re going, how we plan to get there, who’s going to do what.
0:10:43.4 And so, what we’re trying to do when we strengthen the vision component is just eliminate everything except one vision everybody in the organization can sign up for, believe in and go make happen.
Jordan: 0:10:53.8 Without having to read anybody’s mind. I’ve heard it said that in the absence of communication, nothing good happens.
0:11:01.7 Nobody thinks charitable, generous, optimistic thoughts in the absence of communication. Right?
0:11:08.2 The exact opposite happens. We tend to have concerns that there’s a lack of planning, or bad things are going to happen.
0:11:16.3 Backing to what you said prior, have you heard Dan Sullivan use the – talk about the joy of procrastination?
Mike: 0:11:22.2 Oh for sure. Like most of Dan’s – I’m a strategic coach, student, 10X class member myself and so, like all of my fellow class members, we all think he made these things up just for us. 0:11:37.2 And that’s one of them that I think he made up just for me.
Jordan: 0:11:42.3 So I’m a big Dan Sullivan fan and that one really speaks to me on the level of – I think there are some business guilt trips around thinking that as the company grows, you have to do everything well.
0:11:53.8 “If you’re not into numbers, and you don’t have that CFO bias, then you’re a bad entrepreneur. 0:11:59.1 You really should be able to do that, manage people.”
When in reality, unique ability frees you up to recognize that you’re good at a small subset of things, and as an entrepreneur and as the top dog, your job is to figure out how to stay in that lane.
0:12:13.6 That’s what’s motivating to me about this model.
The model, collectively, is around building the infrastructure that allows you to get back to doing what you love.
0:12:24.9 Which, for me, for example, as an entrepreneur, starting new businesses is just fun. 0:12:31.0 BizDev is inherently a really attractive thing to do.
0:12:34.1 But if there’s nobody manning the ship, managing the going concern, it becomes a massive liability and distraction.
0:12:40.2 Let’s talk about the people conversation. When we think about managing – and you managed – it could be your second employee or your 102nd employee, everybody eventually gets to the, let’s call it The Peter Principle. Right?
0:12:53.6 You realize that you’re now at the point where things aren’t working on gut feel. Intuition is no longer enough.
0:12:59.6 What is the EOS perspective on team building and building that leadership structure that will take you for the long haul?
Mike: 0:13:13.5 Yeah. And I will inject all six of the components here just for a second. Just so your listeners kind of can get a roadmap they can follow along with.
So when we talk about the six key components, it’s the vision component; the people component; the data component; issues component; process component; and traction component.
0:13:32.5 And what we believe is, if you can run a business that’s 80% stronger or better in all six of those components, we’re always striving for 100%, knowing that’s utopia, we’re never going to get there, but the 80% strong in all six is a truly great business.
0:13:48.4 That’s what we’re looking for. And so, you’re bringing your listeners to the second key component: People.
0:13:55.9 And once your vision is crystal clear, what we say about this is, “You can’t achieve a great vision without great people.”
0:14:04.3 And our philosophy is that we as entrepreneurs need to take more time to define what the unique definition of a great person is in our organization.
0:14:14.1 Because there is no stock definition out there that we can all sign up for.
0:14:19.9 And so, in working with clients as they journey through the EOS process, we spend a lot of time early on really defining what a ‘right person’, someone that shares your core values, in the right seat – somebody that’s really good at an absolutely necessary job in your organization.
0:14:42.0 What does that really mean in our organization, and then we give our clients a set of simple, practical tools designed to facilitate comfortable, open and honest conversations around how people are doing with those two things.
0:14:55.9 So that if somebody’s great at their job but driving you crazy, you can actually sit down with them and say, “Hey we’ve got these five core values, Jordan, and while you’re really good at your job, you’re gapping a little bit in these areas.”
And you can coach them up and ultimately coach them out.
0:15:13.7 And surround yourself exclusively with great people. Folks who share your core values, fit your culture and are great at their job. That’s our approach.
Jordan: 0:15:23.5 Paton, what do you hear when you hear entrepreneurs gripe about their people? That has to be one of the most emotionally charged complaints that comes across.
I mean, I’m thinking of some just broad brush blanket statements I’ve heard within the last 30 days.
0:15:39.8 One was that, “People are just…” – to paraphrase: “People are garbage. Just universally, people are garbage and what can you do.”
0:15:48.4 Or another one was – this was an entrepreneur that had expanded to a new state on the other side of the country and was, “You know, it’s just tough to find good people in such and such a state.” You know?
These are pretty broad generalizations. Like, what do you pick up when you hear that?
Mike: 0:16:01.9 Yeah. And here’s what’s important. People are frustrating. Ok? And people are people.
There are humans everywhere and there are definitely some cultural differences from one region or country to another. Ok?
0:16:17.2 But, it’s my fundamental belief that nobody wants a job where they come to work doing subpar work and hoping nobody ever finds out.
0:16:30.9 Most people that I encounter want to do great work and get paid fairly, or maybe even a little bit more than fairly. 0:16:41.3 You know, if you’re cynical, then that.
0:16:43.5 But the vast majority of people out there just want to know what a great job looks like. And given the opportunity, will work their butts off to go do that.
0:16:52.8 And some will fail because they lack the skills.
Like, I’d love to be an NBA basketball player, but there are numerous deficiencies of attitude and skill that would make it impossible for me to go do that. Ok?
0:17:07.7 But the vast majority of people really do want to be champions in their organization.
0:17:11.8 I believe good leaders and managers give people that opportunity.
0:17:17.5 But what I hear about is all the stuff you’re talking about. “All of these kids today. What are they teaching them in school?”
I hear people complaining about the sense of entitlement. And those things are situationally true in every generation on the planet.
0:17:33.0 There are people who are entitled, and there are people who are accountable and driven to be champions.
And I’m talking to as many compellingly bright hardworking young people as I am talking to compellingly bright hardworking 50 or 60 year olds.
0:17:50.2 Our job as leaders is to create a culture and a sense of clarity about what we’re trying to accomplish.
Where the people who want to be champions want to join your team, and the people who don’t want to be champions want to go work for your competition.
0:18:05.0 That’s what we’re teaching our entrepreneurs to do.
Not, you know, create a system in which we can turn people who don’t want to work hard and don’t care very much into people who magically do. 0:18:18.2 Nobody can do that. Legally.
Jordan: 0:18:21.7 Sure. So the way I think about it, for me, as an entrepreneur, maturity and success has looked like getting aligned with the customer.
In the same way there’s also getting aligned with what’s best for your employees. 0:18:35.9 Your staff will pick up on your intention.
And so, if your intention is purely to make them a means to an end, a cog in the wheel, slot them in, don’t think about it again, they will pick up on that.
0:18:49.2 In your mind, from a staff member’s perspective, how would you want – or how would you expect a staff member to articulate what is available to them within an organization that has EOS in place?
Mike: 0:19:02.4 Yeah. So, it goes back to the vision component.
So when we talked about making your vision component stronger, what I do is I get into the room with the leadership team and I ask them eight questions that clarify and simplify what the company’s vision is.
0:19:22.7 And I’ll ask question number one and then I’ll refuse to move forward to question number two until the team agrees to the answer, word for word, to question number one.
0:19:33.2 Ok, now we’re done with question number one, now let’s go answer question number two.
0:19:37.7 Because the first thing employees of a company running purely on EOS notice, is that when there’s a leadership team of five people and I ask one of them what our core values are, what are core focus is, where we’re going to be ten years from now and how we plan to get there, I’m going to get the same general answer that I get from that one that I do the other four.
0:19:59.5 And in a lot of organizations, that’s not the way it works.
You just go ask your various members of your leadership team the question you want an answer to until you hear an answer you like, and then you go do it that way.
0:20:10.9 And so, we eliminate that dissonance by strengthening the vision component. 0:20:17.5 And then we just ask the leadership team,
“Hey, how about if every quarter, you stand up as a unified front and share with every employee in this organization what the company’s vision is so they know where we’re going, how we plan to get there, how we’re progressing on our journey. And you engage them in a conversation. Answer their questions. Accept their pushback, etc.”
0:20:39.0 That’s what people notice in a well-run EOS company, is that they’re part of the art and science of creating clarity and a mission driven organization. Because there’s a purpose here.
0:20:52.6 And it’s exciting to people who want to do something special.
Jordan: 0:20:55.8 You talked previously about the notion of ‘people want to do a good job’. It’s intrinsic to us that when we’re at our best, when we’re unencumbered by ego, etc., we, generally speaking, want to achieve, perform, have a communal sense of belonging and a goal that we’re working towards.
0:21:17.3 Can you talk to me about the cadence, the meeting structure that draws people to stay on track towards these goals?
Mike: 0:21:27.1 Yeah. And so, now we’re getting into the data issues and Traction components.
And so, you know, the other stuff we’re building in an EOS company is we’re asking the leadership team to create a company scorecard that they look at every week to determine whether they’re on track to achieve their longer term objectives.
0:21:48.3 Like hitting sales numbers, achieving profitability goals, satisfying the customer consistently.
0:21:57.6 We call that a ‘Leadership Team Scorecard’ or a ‘Company Scorecard’, that includes five to 15 leading indicators.
0:22:04.3 These are activities-based numbers that predict the results we’re going to get next month and next quarter.
0:22:12.9 And we ask our leadership to obsess about keeping those scorecard numbers on track.
0:22:19.7 So, if you were coaching a professional football team, you know, it might be scoring how people do in practice everyday as a leading indicator of how the team might perform in the game on Sunday. To give you an example. 0:22:35.1 Ok?
0:22:36.6 And so, by obsessing about these predictive indicators that predict future results, we’re building focus, discipline and accountability on a weekly basis to activities that lead to results.
0:22:50.8 And so, you get less highs and lows, because if you engage in activities that are proven to get results, you’re going to get more consistent results over time.
0:23:01.6 You just have to keep getting better at all that.
0:23:04.0 So that’s – and then every week we’re asking our leaders to spend 90 minutes in the room with one another reviewing their scorecard. “Are our numbers on track?”
0:23:13.2 Reviewing their priorities for the quarter. We call those ‘Rocks’, which is a Steven Covey term that was popularized by Verne Harnish to describe business priorities.
0:23:26.7 And in an EOS company, Rocks create what we call a 90 day world for the organization where we’re all clear on our priorities.
0:23:33.7 And so, every week we ask our leaders to say out loud, “Jordan, you had three priorities this quarter, is priority number one on track or off track?”
And it builds a little personal accountability to manage your priorities with a high-level of importance throughout the entire quarter. 0:23:53.7 So that drives focus and discipline.
0:23:55.8 And then, we also ask every week, “Are our customers and employees happy?”
And we ask leaders and managers to identify when maybe that’s not the case, or great examples of when we’re doing something really well, so we can solve issues and replicate those behaviors so we can keep upgrading customer and employee happiness.
0:24:16.8 And then we spend the rest of our 90 minutes together, a full hour doing what great leaders spend time doing, which is prioritizing and resolving issues.
“Why are our numbers off track? Why are our Rocks off track? What do we need to get them back on track?”
0:24:32.1 That’s the meeting pulse you referred to, that helps create a cadence for the organization.
Where just it’s very difficult not to stay focused on the stuff that’s most important to your business and your department, your team and your life every week. 0:24:47.8 That’s EOS in a nutshell.
Jordan: 0:24:48.8 So now we’re getting specific enough that some of you listening – some things may be coming up for you.
You may be thinking to yourself, “Sounds a little complicated. Why would I need to do these meetings? I know what I need to do, I’m the entrepreneur. I’m already so busy, why would I saddle myself with even more structure, etc.?”
0:25:09.4 How do you respond to that Paton?
Mike: 0:25:11.9 Yeah. So that’s a very common reaction when we’re teaching the Level 10 meeting in the first session – a full day session with a client.
0:25:20.7 And all I’m going to tell your listeners is that 90 days later, when we’re doing session three, the people who are fighting the 90 minute Level 10 meeting the hardest are the ones who love it the most.
Because what they’ve found is that by setting aside 90 minutes to do those things I just described every week, they’re literally saving three to six hours a week of wasted time spinning wheels around all the stuff we actually accomplish in the Level 10 meeting. 0:25:51.2 It’s magic.
0:25:52.8 And the great example I like to give, is there are a lot of companies out there where all the people in them are super busy.
And so, when there’s a problem that needs to be addressed by multiple people in the organization, these poor souls are trying to solve the problem via email.
0:26:11.0 And when you’re doing that in your organization, the email always reads something like this: First of all you send it to a person, but then you copy almost everybody. Right? The whole leadership or everybody in the organization.
And you say something like, “I think we’ve got a problem. Bullet, bullet, bullet. I think we ought to do this: Bullet, bullet,bullet. What are your thoughts.” Question mark. Send.
0:26:37.2 And three weeks later, you haven’t solved a darn thing, but you do have 132 message email chain and it’s consumed a bunch of people’s time and ticked a bunch of people off.
0:26:51.5 And all we ask is, email’s a great way to share information. It’s a lousy way to solve issues.
0:26:56.5 So we believe that if you can just get in a room, spend some sacred issue solving time every week, you’re going to save yourself a heck of a lot more time than you think. That’s my answer.
Jordan: 0:27:07.9 Ok. Makes sense. So there has to be order. I guess the way I’d phrase it would be the luxury of disorder runs out proportionate to the level of your ambition.
Mike: 0:27:20.7 Yeah. And here’s the other thing. This is a common visionary, entrepreneur tenancy to believe that we are significantly more approachable than we actually are.
“What do you mean Paton? I’m totally unassuming. I’m the most laid back easygoing guy.”
Yeah but Jordan, your name is on the sign out front of our building.
0:27:46.6 The brand new employee that is completely unaware exactly what you want to have done is really not sitting there excited about knocking on your door and saying, “Hey Jordan, I need some help from you because I’m clueless here.” That doesn’t happen.
0:28:01.4 And so, the meeting is a safe space for people to get questions answered, issues addressed, raise their hand and have the courage to say, “Hey we could be better at something. Our customers aren’t real happy here.”
0:28:13.2 You need to create that safe space for these people, or they’ll never knock on your door and interrupt you when you look busy.
Jordan: 0:28:18.9 I love that. And I think we can all relate as entrepreneurs operating off of gut is what is so familiar.
That’s not transferable. That doesn’t – that’s a cruel way to manage. Right? To expect that somebody is just going to be able to intuit.
0:28:35.2 I’m training a new executive assistant, kind of going through that phase right now.
0:28:40.3 On the one hand, I want him to uptake context and to get to the point where he knows my preferences and can read in between the lines. At the same time, that requires a significant verbal didactic communication.
0:28:52.4 So hearing where you’re coming from on that.
0:28:55.3 When we talk about actually getting EOS in place, what’s the timeframe?
How long does this take and what roles are involved? Is it one person driving the ship? Like how do you actually start?
Mike: 0:29:09.6 Well, first of all, EOS was built for companies with between ten and 250 people that are privately held.
Owners and leaders are growth oriented, open minded, more afraid of the status quo than they are of change.
0:29:24.0 So, if that describes a listener out there, you know, the step one is learning more about EOS and the place you can do that is our website EOSWorldWide.com.
0:29:39.7 Step two, the easy step two, is we have 233 EOS implementers – professional EOS implementers around the world that do nothing but fixate on helping entrepreneurs get what they want from their businesses.
0:29:55.8 And so, I would really urge your entrepreneurs and their leadership teams. It’s usually two to five other people that they rely most on to run the business day to day.
0:30:07.8 And so, I’d urge you to consider assembling your leadership team in a room with one of our EOS implementers.
0:30:14.7 And what we do is conduct a 90 minute meeting that paints a clear picture for a leadership team of what a company really running on EOS looks and feels like.
0:30:27.2 Because, as simple as it is, it isn’t for everyone.
And we want you to decide on an informed basis, whether or not this is for you before you start your journey.
0:30:37.8 Once you decide to start your journey, it’s just a series of full day leadership team meetings that an EOS implementer runs.
0:30:48.0 And on average, our clients spend about ten days with us over the course of about two years working with an implementer.
0:30:55.4 And then they do something we call ‘Graduating’, which means we’ve taught them the 20 tools in the EOS toolbox, we’ve helped them get their six key components to 80% strong or better by implementing the system and the tools down into their business.
0:31:13.3 And they’re ready to run their business on their own.
Still relying on EOS as the way they’re operating, but without the need to have a professional in the room with their leadership team every quarter when they meet.
Jordan: 0:31:25.3 I want to hear some more about who this may not be for. What is the profile of the person where it’s not a fit?
Mike: 0:31:32.3 Yeah, so. Number one, you need to favor simplicity over complexity.
And so, if you just love everything to be complicated. You love it all to be up in your head and it makes you feel good to have everybody around you sort of relying on you for all the answers, you don’t want to run your business on EOS.
0:31:50.5 And there are, you know – a lot of people laugh when I say that, like, “There’s nobody out there like that.” Bologna.
About half the entrepreneurs our there are kind of secretly like that. Right?
0:32:02.9 Number two, you need to want single point accountability for everything important in your business. And you need to be comfortable with the idea of personal accountability yourself.
0:32:18.8 Because EOS is a driver of accountability, top to bottom, side to side. 0:32:23.0 And that just has to start at the top.
0:32:27.2 And so, if you’re uncomfortable with accountability and you’re listening to this podcast and you’re thinking to yourself, “Oh this is great. Paton or a professional EOS implementer can come in here and make everybody else accountable,” but you’re not willing to put a mirror up in front of you and own that yourself, you don’t want to implement EOS.
0:32:45.1 And then, the last thing is, the EOS worldwide logo is a lightbulb.
And for me, what that’s always meant is that, you know – what an EOS implementer does when he’s working or she is working with a leadership team, is we shine a light into all the dark nooks and crannies in your business.
0:33:04.4 And when we do that, just like a home inspector looking in your kitchen, we find some cockroaches.
And if you’d really rather not know that you have cockroaches or mice in your house, don’t implement EOS, because we’re going to shine a light on all of that stuff.
0:33:20.5 And so, you know, I’ve had good friends of mine who are entrepreneurs that I talked to about this and they say, “Well, you know, I don’t want to solve that people issue. That’s my cousin. We go way back.”
And if that’s the way you want to run your business, there’s a place for that, just EOS isn’t the thing you ought to go do.
Jordan: 0:33:38.7 With the second concern that you brought up, what would you say to the entrepreneur that’s early in their career and they have a little anxiety about being exposed or failing in front of their team.
0:33:51.0 By setting a goal, creates the possibility for failure. “I don’t want to look like a bad leader in front of my team.” 0:33:56.1 How would you address that person’s concern?
Mike: 0:33:58.5 Yeah. And so, we can be our own worst enemies. Is what I would say.
And if you want to achieve a great vision, you are going to need to push yourself beyond the current constraints of your own accountability.
0:34:17.9 And so, doing that vulnerably with a leadership team that you trust around you that learns to see you as a human with greatness and flaws, is actually one of the most rewarding emotional journeys you can possibly go on.
0:34:33.5 Because when a team cracks the champagne after winning The Superbowl or The World Series, and they’re emotional about their journey, they are not emotional because of all the things that worked well.
They’re emotional because they’ve been through the pain and the doubt and the grief and the failure that makes success so sweet.
0:34:59.9 So open it up a little bit. Let the people around you see that you’re a real human being. Be raw. Be vulnerable.
You’ll build a better team and you’ll enjoy the journey a lot more in the end.
Jordan: 0:35:10.9 Amen. I love the generosity of the organization. You can hire an implementer. I think that’s great. 0:35:19.7 [Inaudible] to go. But there’s also books.
0:35:21.0 You guys have published some amazing literature for free. Of the folks that I know that have implemented EOS, I would say it’s about half and half.
Half have worked with implementers, half have just got the book and just done it themselves. 0:35:33.1 So there’s a lot of different ways to skin that cat.
0:35:34.3 But the big thought for me here, Paton, is this: It’s the idea that the system is always working. The system is designed to produce the results it’s achieving.
0:35:44.0 So, if, in fact, you are this content with the results that you’re currently getting, it may be time, in fact, it probably is time to think about doing something different.
0:35:54.1 Whether it’s EOS or something else, going pro, embracing accountability.
0:35:56.4 We’re talking about a lot of general principles and concepts that are pretty hard to dog. Even if somebody doesn’t work with EOS, these are the universal constituent elements of success.
0:36:07.9 Before I let you go, I want to ask you the one question that I ask every single guest, and I’m excited to hear your answer.
0:36:15.9 Paton, in your opinion, are entrepreneurs born or bred?
Mike: 0:36:24.0 Yes. Yeah. Yeah. So, so I believe there’s a little nature and a little nurture in entrepreneurship.
There is a 0:36:36.4 [Inaudible] we believe in the COLBY profiling tool and use it regularly with out clients. And there is certainly a type.
0:36:45.3 A comfort with risk and uncertainty. You know, willingness to enter the danger. To think conceptually, etc, that most entrepreneurs need in order to be on that journey and not let it fold them into themselves.
0:36:59.1 So there is an instinctive type that makes being an entrepreneur more appealing and less dangerous to your ability to go execute everyday.
0:37:10.3 But I also see that people can be trained into and out of entrepreneurial excellence.
0:37:18.1 So, a lot of people who might be naturally entrepreneurially inclined, that spend 20 years working in a Government agency or a big corporation, I see them come out of that background and say, “I’ve always wanted to be an entrepreneur, so here I go.”
And they’ve just been beaten into submission that, “These are the ways we do things around here,” and they can’t be as nimble and flexible.
0:37:43.4 And so, I really believe both are true.
And what I would say to your listeners, is that if you feel that your journey is entrepreneurial, A: I would do some assessments to determine whether or not you’ve got the hardwiring it takes to be successful.
0:38:03.7 And then B: I’d go out and get help from people who have been on this journey before and take the advice of folks who have A: succeeded, but maybe more importantly, failed.
0:38:15.4 Because that’s what bonds all the professional EOS implementers together.
We’re all excited just to prevent our clients from making the same stupid mistakes we made over and over. Leveraging this system.
0:38:27.2 So, sorry for the long-winded, non-definitive answer, but I think it’s a little of both.
Jordan: 0:38:33.8 Well, you wouldn’t be the first one to say that. It’s great to get your kind of unique perspective on that question.
0:38:40.3 So, to wrap up. If folks have the vision, let’s say they go on Amazon right now, they buy a copy of Traction, they read it, they want to take it to the next level, how would someone get in touch with an EOS implementer?
Mike: 0:38:52.8 Yeah, so it’s www.EOSWorldWide.com and there’s a button in the top menu bar called, ‘Find an Implementer’. Click there. Do a geographic search via zip code or a country that you live in around the world, and you’ll be able to find a local EOS implementer.
0:39:15.0 And we have community builder in our organization that exists specifically to help entrepreneurs find the right implementer for them, and that number is there as well.
Jordan: 0:39:27.0 And is the local thing a factor? Or can I work with somebody in another …
Mike: 0:39:34.5 I think it works, but we believe it works best to have a local EOS Implementer, because we do our sessions live in a meeting room together. But there are certainly people doing virtual 90 minute meetings.
0:39:47.8 And so, I’d urge you to find somebody local, and if you can’t find somebody local, call Shawn Fayne, our Community Builder Manager, and she’ll help you find somebody who can do a remote meeting.
Jordan: 0:40:01.0 Alright, we’ll link it up in the show notes. Hey, thanks again for coming on. Next time you’re in Austin, let’s break bread.
Mike: 0:40:06.8 Sounds like a plan. Thanks, Jordan, enjoyed it very much.