What is a 1-Year Plan in EOS®?
The 1-Year Plan™ is the EOS tool that translates your 3-Year Picture™ into this year’s specific goals. It lives on page two of the V/TO™ and includes the future date (end of fiscal year), revenue target, profit target, measurables, and three to seven goals the company must accomplish this year. The 1-Year Plan is the first year of the 3-Year Picture, made concrete and actionable.
A strong 1-Year Plan aligns the leadership team on what matters most this year and drives every quarterly Rock.
Why the 1-Year Plan exists
Most companies have annual goals. Most of those goals live in a slide deck from January and get forgotten by March.
The 1-Year Plan is different. It is one page. It lives on the V/TO. It is referenced every quarter. It drives the Rocks™. It is the operational bridge between long-range vision and weekly execution.
When the 1-Year Plan is clear, every quarter has direction. When it is vague or missing, quarterly Rocks become a scramble for priorities.
What goes in the 1-Year Plan
The 1-Year Plan typically includes:
- Future date. The last day of the current fiscal year.
- Revenue. This year’s revenue target.
- Profit. This year’s profit target.
- Measurables. Three to five key metrics beyond revenue and profit.
- Goals for the year. Three to seven specific goals the company must accomplish.
The goals are the focus. They answer: what are the three to seven most important things this company must accomplish this year?
What makes a good 1-Year Plan goal
Each goal must be specific, measurable, and accomplish-able in the year. Goals are the year’s must-win battles.
Strong goal examples:
- Launch new product line and generate $3M in revenue
- Open Denver office with 10 full-time hires
- Implement new CRM across sales and customer success
- Achieve 40% gross margin on service lines
- Hire and onboard a VP of Sales
- Reach $25M in annual recurring revenue
Weak goal examples:
- Grow revenue
- Improve operations
- Build culture
- Hire great people
The test is the same as for Rocks. At the end of the year, can anyone in the room say yes or no without debate on whether the goal was accomplished?
How to build the 1-Year Plan
Step 1: Start with the 3-Year Picture
The 1-Year Plan is the first year of the 3-Year Picture. Start there.
What does the 3-Year Picture say about year one? What revenue trajectory? What team size? What customer base? What operational capabilities?
Step 2: Set the financial targets
Revenue and profit for this year. These should be ambitious but achievable. If they do not connect to the 3-Year Picture, one of the two documents is off.
Step 3: Identify the year’s must-wins
Brainstorm: what must this company accomplish this year to be on track for the 3-Year Picture? List everything.
Then narrow to three to seven. The right ones rise to the top.
Step 4: Make each goal specific
Every goal must be specific, measurable, and attainable. “Launch product” is not a goal. “Launch new product line by June 30 and generate $2M in Q3-Q4 revenue” is.
Step 5: Document it on the V/TO
Put the full 1-Year Plan on page two of the V/TO. Question six.
How the 1-Year Plan drives Rocks
The 1-Year Plan is the source of quarterly Rocks. At every Quarterly Pulsing Session, the leadership team asks: what Rocks do we need in the next 90 days to stay on track for the 1-Year Plan?
The answer becomes the three to seven Rocks for the quarter.
This connection is what keeps the year aligned. Without the 1-Year Plan, quarterly Rocks get set reactively. With it, Rocks flow naturally from the plan.
How often to update the 1-Year Plan
Once a year, at the Annual Planning session. The plan is set in January (or the start of your fiscal year) and stays fixed for the year.
Revenue and profit targets can be adjusted at mid-year if dramatic circumstances change. But the goals should not shift. Shifting goals mid-year is a sign the team did not pick the right ones.
How the 1-Year Plan gets used
A strong 1-Year Plan shows up in four places:
- Quarterly Pulsing. Reviewed every 90 days. Rocks get set against it.
- State of the Company meetings. The whole company sees progress quarterly.
- Leadership decisions. Every strategic choice is tested against the 1-Year Plan.
- Individual goal setting. Every employee’s work should trace back to a company goal.
Common 1-Year Plan mistakes
- Too many goals. Ten goals is zero goals. Three to seven is the range.
- Vague goals. “Improve customer experience” is a direction, not a goal. “Reach NPS of 60 by year end” is a goal.
- Disconnect from the 3-Year Picture. If the 1-Year Plan does not clearly advance the 3-Year Picture, one of them is wrong.
- Setting it and forgetting it. The 1-Year Plan must be reviewed every quarter.
- Conflating it with a budget. The budget is financial. The 1-Year Plan includes financials but also operational and strategic goals.
- Changing goals mid-year. If goals shift often, the team did not pick the right ones.
How the 1-Year Plan connects to the rest of EOS
- V/TO. The 1-Year Plan is question six on page two.
- 3-Year Picture. The 1-Year Plan is the first year of the 3-Year Picture.
- Rocks. The 1-Year Plan drives quarterly Rocks.
- Scorecard™. The Scorecard measures weekly progress toward the 1-Year Plan.
- Annual Planning. The 1-Year Plan is set at Annual Planning.
Frequently Asked Questions
What is a 1-Year Plan in EOS?
The 1-Year Plan is the EOS tool that translates the 3-Year Picture into this year’s specific goals. It includes this year’s revenue, profit, measurables, and three to seven goals the company must accomplish. It lives on page two of the V/TO.
How many goals should a 1-Year Plan have?
Three to seven. Closer to three is ideal. More than seven dilutes focus.
What is the difference between a 1-Year Plan and an annual budget?
A budget is financial. It lists revenue, expenses, and cash flow for the year. A 1-Year Plan includes financials but also operational and strategic goals: what the company must accomplish, not just how much it will earn and spend.
How does the 1-Year Plan connect to Rocks?
The 1-Year Plan is the source of quarterly Rocks. Each quarter, the leadership team asks: what Rocks do we need in the next 90 days to stay on track for the 1-Year Plan? The answer becomes the Rocks.
How often is the 1-Year Plan updated?
Once a year, at the Annual Planning session. The plan stays fixed for the year, with minor financial adjustments at mid-year if conditions change dramatically.
Is 1-Year Plan trademarked?
Yes. 1-Year Plan is a trademark of EOS Worldwide.
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Written by EOS Worldwide
Reviewed by Mark O'Donnell, Visionary & CEO, EOS Worldwide
EOS Worldwide is the organization behind the Entrepreneurial Operating System®. Content reflects official EOS® doctrine.