Traction

  PRAISE FOR TRACTION

  “The concepts and tools that have been masterfully captured in the pages of this book have provided some of the magic that has helped us grow our business 300% over the last five years. Don’t miss it!”

  CRAIG ERLICH

  CEO, PULSE220

  “The concepts in this book have changed my life! I’m now able to let go of the day to day, knowing I have developed a team that can efficiently handle the details. We have consistently grown every year for the last four years in a very tough market, while the competition has struggled.”

  RONALD A. BLANK

  PRESIDENT, THE FRANKLIN COMPANIES

  “Having coached and trained over 13,000 entrepreneurs, I know the challenges they face. This book is a must for any business owner and their management team. Traction provides a powerful, practical, and simple system for running your business.”

  DAN SULLIVAN

  PRESIDENT AND FOUNDER, THE STRATEGIC COACH

  “Prior to implementing the disciplines in this book my partner and I felt like we were running our business by the seat of our pants. With the Traction tools in place we now have faster growth, increased profitability and great people that we enjoy working with. Our growth rate has averaged over 20% per year. These results put us in a position to sell our company to a public company for above-normal multiples and reacquire the company after just a year and a half.”

  ROB DUBE

  PRESIDENT, IMAGE ONE

  “Gino’s tools work. They really help us stay consistent and focused on our vision. The Traction principles have helped me build a solid leadership team, crystallize our plan, and create the discipline to take the organization to the next level.”

  SAM SIMON

  PRESIDENT & CEO, ATLAS OIL COMPANY

  “Traction is far and away the most potent and useful approach I’ve ever seen for running a successful company. The content is bulletproof! You have to read this book.”

  VINCE POSCENTE

  AUTHOR OF THE AGE OF SPEED

  “The content in Traction has improved my business and my life dramatically. I’m having more fun, and my sales and profits have increased by 50% over the past three years. The methodology keeps us on track, allows us to be creative, and helps us serve our clients better.”

  BOB SHENEFELT

  CEO, RCS INTERNATIONAL

  “The concepts in this book have revolutionized our enterprise. We are highly profitable, adroit, flexible, and have a results-oriented culture. Working with Gino’s tools has made a meaningful difference in who we are today.”

  ALBERT M. BERRIZ

  CEO, MCKINLEY

  “Traction is a must-read for the business owner/manager who desires a high performing business and a great quality of life. The concepts in this book have allowed me to not only maintain my focus on making my business the best it can be, but to also be the best family man I can be at the same time. Traction is like no other business book because it offers real, practical, easy-to-understand systems to run a business. Our company has experienced a powerful cultural shift.”

  DAN ISRAEL

  PRESIDENT, ASPHALT SPECIALISTS, INC.

  “This book will change your and your employees’ lives. The tools are sensible, effective, and a must for any organization, entrepreneur, or leader. I personally use them within my national real estate valuation company and this year we grew 150%, after being in business for over 14 years.”

  DARTON CASE

  PRESIDENT, THE ENTREPRENEURS’ ORGANIZATION

  “The concepts in Traction saved our company from mediocrity and propelled us to excellence. They have provided us with the tools to deal with any situation that might arise and better yet, to head off some situations at the pass. We now have all the right people in the right seats doing the right jobs. Traction has given me the confidence that we are moving forward as a company and as a team.”

  ROB TAMBLYN

  PRESIDENT, THE BENEFITS COMPANY

  “If you are an entrepreneur, leader or manager you must read this book. Together with my son and son-in-law, I was looking to rapidly grow the business that I had built over the last 35 years. The tools in this book were exactly what we needed to make that happen. By applying the Traction disciplines we have been able to grow revenue by 50% over the last three years and profit exponentially more.”

  ROBERT SCHECHTER, C.L.U., CH.F.C.

  CHAIRMAN, SCHECHTER WEALTH STRATEGIES

  “Traction is a must-read. What you will learn are the same tools that have enabled me to grow my business 100% over the last three years while staying balanced and having fun. This book will change your life.”

  BERNIE RONNISCH

  PRESIDENT, RONNISCH CONSTRUCTION GROUP

  “These tools have been an invaluable resource for Zoup! Our company has flourished, growing from five locations to just under 50 open and awarded. In addition to traction and accountability, these concepts have helped us create a strong, healthy, and skilled leadership team with clarity around the company’s vision and each member’s contribution to that vision. It has helped us clarify roles for the team and also for franchisees.”

  ERIC ERSHER

  FOUNDER & CEO, ZOUP! FRESH SOUP COMPANY

  “I had a well-run, profitable and growing business before we implemented the concepts in Traction. Today, a year after implementation, we have supercharged the business. We now have clarity of responsibilities and problem-solving frameworks, and the growth has been explosive even through the recession. Thank you for giving us the framework to really take off!”

  BOB VERDUN

  PRESIDENT, COMPUTERIZED FACILITY INTEGRATION, LLC (CFI)

  “A note of thanks for all you have done for our firm. When we began implementing these concepts, I was not happy, my health was failing, and my stress level was so high, I was ready to give up. Business wasn’t fun anymore. My business owned me—I didn’t own my business. At the time, I had 10 employees and was ready to take it back to five and just settle for where I was. To consider more growth just meant more stress and more frustrations. In the last year and a half of working with you, we now have 12 employees, and our revenue has gone up by almost 100 percent in two years! The best part is, I am not only happier again but also have more freedom of time. I now spend 50 percent of my year in Nashville with my two children, their spouses, and my two granddaughters. More income, and less time combined with happier employees = one happy business owner. Many, many, many thanks!”

  CURT WHIPPLE

  OWNER, C. CURTIS FINANCIAL

  THE TRACTION LIBRARY

  WANT EVEN BETTER RESULTS AND MORE BUSINESS SUCCESS?

  IT TAKES YOUR WHOLE TEAM.

  Every person on your team must be equipped with the right information and tools to implement EOS, the Entrepreneurial Operating System® purely throughout your organization. With The Traction Library, your entire company—from leadership to management to employees—will understand their role and be better equipped to help your company succeed.

  Visit www.eosworldwide.com to get everything you need to fully implement EOS in your company today.

  TRACTION

  GET A GRIP ON YOUR

  B U S I N E S S

  GINO WICKMAN

  © Copyright 2011 Gino Wickman

  All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system without the prior written permission of the author, except for the inclusion of brief quotations in critical reviews and certain other non-commercial uses permitted by copyright law. For permission requests, contact the author in writing at the address below:

  17197 N. Laurel Park Drive, Suite 149

 
Livonia, MI 48152

  www.eosworldwide.com

  The EOS Model™, The V/TO™, The Meeting Pulse™, The “Level 10” Meeting™, The Issues Solving Track™, LMA™, The People Analyzer™, GWC™, Delegate and Elevate™, The Three-Step Process Documenter™, The EOS Process® and The Six Key Components™ are trademarks of Gino Wickman. EOS® and The Entrepreneurial Operating System® are registered trademarks of Gino Wickman. All rights reserved.

  BenBella Books, Inc.

  10300 N. Central Expressway, Suite 530

  Dallas, TX 75231

  www.benbellabooks.com

  Send feedback to feedback@benbellabooks.com

  Printed in the United States of America

  Third e-book edition: May 2013

  Library of Congress Cataloging-in-Publication Data is available for this title.

  ISBN 978-1-936661-84-8 (cloth)

  ISBN 978-1-936661-83-1 (paperback)

  Originally published in hardcover by EOS in 2007

  First Trade paperback edition 2011

  Editing by Erin Kelley

  Proofreading by Michael Fedison and Cape Cod Compositors, Inc.

  Indexing by WordCo Indexing Services, Inc.

  Cover design by Faceout Studio

  Text design and composition by Neuwirth & Associates, Inc.

  Supplemental interior changes by PerfecType, Nashville, TN

  Printed by Lake Book Manufacturing

  Distributed by Perseus Distribution

  (www.perseusdistribution.com)

  To place orders through Perseus Distribution:

  Tel: 800-343-4499

  Fax: 800-351-5073

  E-mail: orderentry@perseusbooks.com

  * * *

  Significant discounts for bulk sales are available.

  Please contact Glenn Yeffeth at glenn@benbellabooks.com or 214-750-3628.

  * * *

  To my dad, Floyd Wickman, one of the world’s greatest entrepreneurs. This book would not exist without your teaching and mentoring. It is a tribute to who you are.

  And also to my wife, Kathy, my daughter, Alexis, and my son, Gino: I am so proud, and I love each of you with all of my heart.

  CONTENTS

  Copyright

  INTRODUCTION

  CHAPTER 1

  The Entrepreneurial Operating System®: Strengthening the Six Key Components

  CHAPTER 2

  Letting Go of the Vine

  CHAPTER 3

  The Vision Component: Do They See What You Are Saying?

  • Answering the Eight Questions

  • Shared by All

  CHAPTER 4

  The People Component: Surround Yourself with Good People

  • Right People

  • Right Seats

  CHAPTER 5

  The Data Component: Safety in Numbers

  • Scorecard

  • Measurables

  CHAPTER 6

  The Issues Component: Decide!

  • The Issues List

  • The Issues Solving Track

  CHAPTER 7

  The Process Component: Finding Your Way

  • Documenting Your Core Processes

  • Followed by All

  CHAPTER 8

  The Traction Component: From Luftmensch to Action!

  • Rocks

  • Meeting Pulse

  CHAPTER 9

  Pulling It All Together: The Grand Journey

  CHAPTER 10

  Getting Started

  ABOUT THE AUTHOR AND EOS WORLDWIDE

  GET A GRIP: EXCERPT FROM THE AUTHOR’S UPCOMING BOOK

  ACKNOWLEDGMENTS

  INDEX

  INTRODUCTION

  Humor me for a moment and mentally detach yourself from your day-to-day details. Forget all your pre-existing beliefs about how to run your organization. Now imagine a bird’s-eye view of your business and look down on it from above. What do you see?

  You’re reading this book because you want your organization to be solid and well-run. You’ve already achieved a certain degree of success, and now you’re ready for the next level. However, with this challenge comes a new set of obstacles; sheer will and brute force are no longer enough to survive. The question you’re facing now is a new one: How can you elevate yourself to a position of true leadership?

  What if I told you that by reading this book and applying its core principles, you could eliminate all of your business-related frustrations? That you could have great employees at all levels who share your vision, communicate with each other, solve their own problems, and demonstrate accountability? That your organization could not only run seamlessly, but also have the potential to scale up as large as you see fit?

  I am telling you that, and you can. Believe it or not, you already have everything you need to make those changes. Put this system to work and you will accomplish all of the above, just as businesses across many different industries have been doing for years.

  This book is not another silver bullet management book or flavor-of-the-month strategy. It contains no theory. It’s based on real-world experience, practical wisdom, and timeless truths. More importantly, it works. Through hands-on experience, I have developed a practical but thorough method to help strengthen and reenergize your business.

  If you’re like most entrepreneurs, you’re probably experiencing one or more of five common frustrations:

  1. Lack of control: You don’t have enough control over your time, the market, or your company. Instead of controlling the business, the business is controlling you.

  2. People: You’re frustrated with your employees, customers, vendors, or partners. They don’t seem to listen, understand you, or follow through with their actions. You’re not all on the same page.

  3. Profit: Simply put, there’s not enough of it.

  4. The ceiling: Your growth has stopped. No matter what you do, you can’t seem to break through and get to the next level. You feel overwhelmed and unsure of what to do next.

  5. Nothing’s working: You’ve tried various strategies and quick-fix remedies. None have worked for long, and as a result, your staff has become numb to new initiatives. You’re spinning your wheels, and you need traction to move again.

  Granted, a small minority of entrepreneurs and business owners do not suffer from these frustrations. They run their businesses using core disciplines that arrange the many moving parts of their organization into a well-oiled machine. Some of these owners are naturals who don’t even realize they’re doing anything special. Most of us, though, aren’t so lucky.

  What I teach business leaders is simple, but not simplistic. I help them melt away the five common frustrations by implementing the same basic tools that those successful organizations employ. As a result, business leaders come out feeling more in control, happier, and less stressed. Their organizations are more profitable, more focused, and staffed by great employees.

  You are not your business. Your business is an entity in and of itself. Yes, you created it, but in order to find success, you have to turn it into a self-sustaining organism. Reaching the next level requires more than just a product or service, or a simple determination to succeed. You need skills, tools, and a system to optimize your people, processes, execution, management, and communication. You need strong guiding principles that will work for your company day in and day out.

  This book contains all the tools and components that make up the Entrepreneurial Operating System (EOS). EOS is a holistic, self-sustaining system that addresses the six aspects of your business. Master the individual elements of EOS and you’ll be able to integrate them into a powerful framework that will help you gain traction and realize the vision you’ve always had for your company.

  This operating system didn’t hit me like a lightning bolt; I’ve been refining it in the real world for over 20 years. It came through countless real-world hands-on experiences one lesson at a time. My journey has been a quest to understand what makes great entrepreneurs and businesses so succ
essful. Through turning around and then selling my own family’s business, my involvement in The Entrepreneurs’ Organization, and learning from my many amazing mentors, I’ve been blessed with many experiences, challenges, and lessons. In the last 11 years alone, I’ve completed more than 1,300 full-day sessions with the leadership teams of over 120 entrepreneurial organizations. That adds up to over 10,000 hours of hands-on planning, teaching, coaching, facilitating, and solving leadership problems; EOS is the culmination of all that hard work.

  My typical client is an entrepreneurial small to mid-size organization ($2 million to $50 million in revenue with 10 to 250 employees), growth-oriented, willing to change, and willing to be vulnerable (as in being open-minded, willing to admit weaknesses, and willing to face reality). If that describes you, you’re starting with everything you need. You will not have to master an endless stream of new techniques. Instead, you’ll learn what successful organizations do to run a frustration-free business and gain renewed energy, focus, and excitement for your business. Join me on this journey to better control your business and bust through the ceiling—to have better balance, better results, more fun, and more profitability.

  At this very moment, people who follow The EOS Process are out there running very successful businesses. On average, my clients’ businesses grow revenue by 18 percent per year. In addition, unlike many theoretical authors, I too am out there somewhere, working with a leadership team hands-on and applying, testing, and proving these tools. I am an entrepreneur like you and have been since I was 21 years old. This is not management theory. EOS is working every day.

  Be careful what you wish for—with this system, you’ll get it. After EOS, you’ll make quicker decisions to change people, strategy, systems, and processes where necessary. It will help you reduce needless complexity, identify and remove distractions, identify and troubleshoot any problems, and keep you and your people engaged and focused on a single vision.